Published in Mobiles

IDC dismisses Apple's cheap iPhone plans

by on26 August 2015

Why does Google titter so?

Beancounters at IDC have dismissed Apple's attempts to make a slightly more affordable iPhone.

There is a rumour that Jobs' Mob thinks that a cheaper iPhone 6C will cause Google to surrender and help Apple conquer parts of the world which can't afford its expensive toys.

But IDC said that even if Apple was to launch a cheaper iPhone next month it can't compete with the growing number of affordable Android smartphones on the market, which often retail for less than $200 and would have more services.

"Even if Apple were to introduce another low-cost iPhone (e.g. 'C' version), IDC believes the price will struggle to compete with Android OEMs that are focused on portfolios aimed at price points of $200 and less," IDC said.

IDC explained that, while Apple will continue to struggle in the low-end segment, the firm's ability to screw the last penny out of richer customers with high margins compared with its competitors are "much more valuable" than chasing market share.

After all market share requires you to provide a product, getting people to pay more for something they already have, takes real genius.

Google continues to dominate the global smartphone market in 2015 so far with an 81 percent share, while Apple's iOS claimed 15.6 per cent, a 16.1 per cent increase year over year.

Microsoft's Windows Phone claimed 2.6 percent of smartphone sales. However the beancounters expect Windows to become the fastest growing operating system by 2019, when it will have 12.8 percent of the market.

"Android shipments globally are expected to grow from 1.06 billion in 2014 to 1.54 billion in 2019, while iOS shipments will grow from 192.7 million in 2014 to 269.6 million in 2019," IDC said.

Last modified on 26 August 2015
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