Since the launch of iPhone 5c and deception of the public, analysts, bloggers and shareholders about its high price, there is a widespread perception that Apple iPhone could make a really cheap if wanted. But as you want, we have had to settle for an iPhone 5 plastic-coated colors.
-Plastic with a finish and exquisite touch. We must say everything-.
This view on Apple could go into the middle and low market segment as if by magic, in my opinion, at least partly wrong. But I have them all with me. I can think of arguments for both an affirmative answer as a negative to the question in the title of this article.
Why Apple can not make a cheap iPhone (1st Part)
When a company is founded, business model and value chain is created from the first minute. As the years pass and if the company is successful, these two elements are based within nature itself and its rationale. Every day is more optimized, but also makes it difficult to switch these two factors.
Change the business model and the value chain is difficult, very difficult in addition to painful. But it is not impossible. Here we have Microsoft to try to change a business model based on selling licenses to other services and with Office 365 subscriptions. We can also see Adobe make the same change.
Returning to the case of Apple, there are three limitations that I think will prevent creating a cheaper iPhone:
- iCloud. Why, if there is something Apple criticized what we are unfortunate to have been attempts in the cloud. Falls on the iCloud service, a minimum storage per user account, increases charged to doubloon space, etc.. Not to mention the widespread synchronization falls in the rest of its services and that causes nightmares for developers. It is clear that Apple is not a company born as Google internet. Google lives for internet. Can you imagine millions of users putting more pressure on iCloud? Just cope building data centers throughout North Carolina.
- The Apple business model focuses on the absolute control of the user experience and in the premium segment, with margins, prices, products, customer service, Apple Stores, materials, and design clients, all premium. Everything Apple does is geared towards that goal. The value chain Apple is ready to turn their premium products, from start to finish, and is not intended for anything else.
- Production volume. Tim Cook loves to say after each weekend launch of the new iPhone and a smile from ear to ear that of "The demand of the iPhone 5 has been incredible and we are working hard to bring an iPhone 5 in the hands of the so customers want as quickly as possible. "Sorry Tim, but a broken stock is also bad news for Apple. A potential customer can not find what you want at that moment is a client pissed least or a lost customer and will not return in the worst case.
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