Why Apple can make a cheap iPhone (2nd Part)
The three restrictions we have seen before have a weak point: they are based in the past. Look at the history of Apple so far is okay, but do not put too much weight on it or use it as a guide to what will come in the future. Because, how many times Apple has said that he would not do something then wound up doing?
To Apple can create a cheap iPhone would have to resolve all the limitations of the previous post -why Apple can not make a cheap iPhone (1st Part)- wich is not impossible but neither have heard rumors about partnerships with Foxconn and other suppliers. I think new assembly lines, new agreements with partners, new form of distribution, new training etc. in the Apple Stores would be required. That is, a new chain parallel to the premium segment value.
" Not enough to take some scissors and cut the price of the iPhone 5c half, is much more complex "But then there's the business model. Apple makes money selling hardware now surrounded by its own free software (iOS, OS X, iLife, iWork) and also accompanied by free services (iTunes, iCloud, FaceTime, iMessage). Is a new business model based on services and thought to be possible this cheap iPhone?
It would not take that Apple completely changed, only that the new iPhone would generate sufficient profits (revenues minus costs) from the different stores of digital content (music, apps, books, movies, series) and accessories. Last week, the darkcore commentator put on the table some very interesting ideas, arguing that Apple make much money with iTunes following its commission (the famous 30% to developers). Few years ago, these commissions iTunes served to cover operating costs.
All that said, what do you think is the scenario that will follow Apple?
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