According to analyst Munster and Jaffray, Apple would be intending on reducing the price of the iPhone 3GS to nearly $200 from $375 by Sept, 2013. The development comes as a surprise to the markets at a juncture when apple plans to come out with the all-new iPhone-5. The development could possibly see users capitalizing immensely on the massive price reduction and the result would have a direct impact on the subsequent sales of the Apple product, boosting its value boundlessly.
Apple will boost its Market Share
For most of the tech savvy people, Apple is the most coveted device. Be it the iPhone, the iPad, or the iPod gadgets. Apple products have blows our senses for good. The recent decision to price the iPhone at $200 would boost the share gains for the company and help in thoroughly seizing a majority percentage of the market share. The company decides to meet with the new price quotation by September 2013, down from about $375 to $200 on the off-contract unsubsidized iPhone 3GS.
The Smart Phone market
Apple’s share in the smart phone market has been lingering at a weak percentage, especially in the markets of developing countries. The new price comes as a critical step in order to gain a considerable edge over fellow competitors in the developing world. It has been quite evident that the success of smart phones in developing countries is directly weighed on the cost of the smart phone.
In line with the unfolding events that are prevalent in the developing markets, Apple has done just the right thing in rephrasing the price of the iPhone. The company though is yet to finalize this strategy as reducing the price of the iPhone to $200 would enable the device to account for a quarter of the current sales of the company’s smart phone segment. Companies usually base decisions with relevance to the revenue they earn.