2023 Author: Gordon Kinson | [email protected]. Last modified: 2023-05-24 11:09
Apple's plan to release a budget iPhone is fraught with danger for the company. Why? Because the future device will go beyond the premium devices, thanks to which Apple became one of the richest companies in world history.
UBS analyst Steve Milunovich wrote a note detailing why the budget iPhone poses a risk to Apple's business model. Steve Milunovich is a respected person not only in the financial world, but also in the field of mobile technologies. More than once, the analyst made interesting predictions about the cost of a particular device, which often came true. This time Milunovic decided to express his point of view on the budget iPhone, which is likely to be launched by Apple in the coming autumn. We offer an excerpt from his note:
Milunovic believes that a budget iPhone, which will be much higher than mid-range smartphones, should sell for $ 350- $ 400. Thus, the company will be able to sell its device in countries with emerging markets, especially without going into the "race to survive" with smartphones based on Android.
Even so, the analyst does not believe that the budget iPhone will help Apple succeed in developing countries. And the best plan, in his opinion, is to completely abandon the release of such a device.
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