Apple New Device Launch – Focusing on Classes Compared to Masses

19:27:00

Market, Analyst speculation around type of potential device design received mixed reactions post launch of two devices 5C and 5S by Apple. As per the announcement that 5C would be supported with multiple color reminds me of Nokia initiative and the price points indicate that Apple is not willing to compromise on the price premium they command over competitor in order to maintain their healthy margin. The price point of 5C in US under contract for two years is $99 whereas non contract based is going to cost around $549. Interestingly, Apple would be charging $750 for the same device in China which is one of the fastest growing premium class device markets also. On a contrary the launched 5S is going to be $869 for 16GB memory. In case user opts for higher memory device then it is going to be dearer to customers. The reality is that Apple new device is more costly than iPhone 5 which is having list price of $799. It clearly indicate that Apple is focusing more on niche market of high net worth consumer segment by offering them Classes feel compared to Masses feel. It would be interesting how these devices are received by Apple loyalist.

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