Why Apple Should Not Produce A Cheaper iPhone

Ever since the release of the original iPhone, there’s only been one additional phone produced each year, in each generation. The iPhone is relatively expensive, and can even be seen as a luxury phone, a phone for the middle to upper-class. The same can be said for Apple’s Macintosh computers, and this mentality is part of why Apple’s iPhone has so many sales. A budget iPhone would kill that mentality.

Let’s take a look at another one of Apple’s products, the MacBook Pro. The MacBook Pro new from Apple, is $1100. A PC with the exact same specs can be purchased for less than $500. So why does the MacBook Pro still make so many sales? Why are Apple keeping the price so high?

Apple’s marketing plan has allowed them to do so. Consumers have got the mentality that Apple’s products are of higher quality, higher class. Producing a budget iPhone would kill this mentality, as it would show that this newer iPhone would be able to do almost everything the normal iPhone could do (that is, run iOS and all of its apps and features) for a cheaper price.

The iPhone really is not that overpriced. However, Apple’s competitors are successful because they have a large variety of phones. Apple needs to keep the mentality that the iPhone is a luxury class of phones, and leave the budget devices to Android.

Studies show that current iPhone users are less likely to switch to an Android device in the future rather than the opposite. Keeping a higher-priced phone ensures that each one of those customers are paying that premium price for an iPhone each and every time they upgrade. Apple has already dominated the smartphone market in the past few years with a single phone, they already have a large consumer-base, there is no reason they should hurt their profits by giving consumers a cheaper option.

Apple has recently come from one of its most successful periods, yet Apple’s stock has fallen massively in the last half of a year. What is wrong with Apple? They haven’t really changed at all in recent years, but their stock price is falling. That exactly is what the problem is, that is, their current products have not changed.  Instead of focusing on making a new, cheaper iPhone, Apple needs to focus on making new innovations that have yet to be seen on a mobile phone, rather than adding features their competitors already have. Apple needs new innovations to remain king of smartphones.  Apple needs features that aren’t available on the cheaper devices, that make everyone want to pay the premium price for an iPhone.

A cheaper iPhone is not the answer, and may hurt Apple more than it helps.

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