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by epistasis 5433 days ago
A "budget" price point phone would be better understood in terms of market segmentation rather than market share; i.e. getting money from people who have a lower maximum price, now that they've gotten money from those who are willing to pay more.

If they wanted market share, they would have just led with the "budget" phone.

2 comments

> If they wanted market share, they would have just led with the "budget" phone.

But Apple has a luxury brand, and a "budget" device would detract from that (even the lowly iPod shuffle fills a niche for well-off folks: it's small and sleek).

Budget in this context means pre-paid (as per the last earnings ). And I bet that iPhone will not be compatible with a post-paid plan (or vice-versa)... it will be interesting to see how Apple navigates this as they've been very deft at positioning new products in terms of their existing product lines.

Tim Cook has made several pointed references lately to the pre-paid market.