'Not Something Steve Jobs Would Probably Do': Gurman Says Apple Should Go Against The Grain And Lower iPhone's Price Point
Portfolio Pulse from Shanthi Rexaline
Bloomberg's Mark Gurman suggests Apple Inc. (AAPL) should lower iPhone prices to address slowing sales and challenges in China, including a ban on foreign brands and consumer preference for local technology. After a 13% drop in China sales, Apple faces pressure to attract new users and encourage upgrades. Gurman proposes a cheaper iPhone model to penetrate emerging markets, despite concerns about diluting Apple's premium brand. Apple plans to upgrade the iPhone SE in 2025 with a potential price above $400, but Gurman recommends a $250 price point for significant impact.
April 21, 2024 | 4:36 pm
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Apple Inc. is advised to lower iPhone prices to tackle slowing sales and market challenges, particularly in China. A cheaper iPhone model could help Apple penetrate emerging markets and reduce dependency on China.
The suggestion to lower iPhone prices and introduce a cheaper model addresses Apple's current sales slump and market challenges, especially in China. While this strategy could potentially expand Apple's market share in emerging markets, it also risks diluting the brand's premium image. The impact on AAPL's stock price in the short term is uncertain, as market reaction will depend on investor perception of the balance between expanded market reach and potential brand dilution.
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