News Analysis: Speculation abounds that a cheaper iPhone is in the works. That means it's time to ask whether all Apple products should be cheaper than they are now.
reports have been swirling over the past few weeks
saying that Apple could
be planning to launch a cheaper iPhone later this year. Originally, rumors
suggested the device would also be smaller, but as of late, reports suggest it
will be the same size as previously released versions of the smartphone.
In either case, a cheaper iPhone is nice to hear. For years, Apple has been
the premium provider of premium products at a premium price. Even talk that the
company is just thinking about selling its marquee device at a reduced rate
speaks to the changes that must be going on in Cupertino.
But what about its other products? A cheaper iPhone is great, but most would
agree that Apple's other products tend to be overpriced. Wouldn't it be a good
idea for Apple to reduce the price of all of its products?
Yes, it would.
Read on to find out why:
1. The tablet competition is fierce
iPad isn't nearly as overpriced as some of the company's other products
For as little as $499, consumers can get their hands on an iPad. But to get
access to 3G from the iPad, they will need to dole out at least $629. Last
year, that was fine. But this year, as new devices are prepped for launch
running an impressive Android 3.0 "Honeycomb" and boasting dual-core
processors, along with 4G connectivity, the iPad seems rather underpowered next
to competitors. The time may have come for Apple to either release a new iPad
or reduce the price of its current model.
2. Android is performing well in smartphones
It's a good idea for Apple to reduce the price of its iPhone later this
year. As recent market-share figures have shown, Google's Android platform is
performing extremely well across the world. And several devices, including the
Motorola Droid X and the HTC Evo 4G, are
appealing to customers who want to get in on the Android craze.
By offering the iPhone for less
, Apple can put more pressure on competitors
and potentially reduce Google's market share.
3. The competition won't be able to keep up
Speaking of competition, it's important to remember that Apple sets the
benchmark by which all other products are judged. It releases the highly
anticipated device, sets the price and rakes in the cash. The competition, on
the other hand, tries to beat the company in most cases by delivering a
comparable product at a reduced rate. If Apple can stop that from happening by
selling a cheaper Mac or iPad or iPhone, the company can eliminate one of the
few things that the competition uses to generate sales.
4. PC makers are selling devices on the cheap
Pricing on Macs has always been a topic of debate among consumers who say
that Apple's logo, and little else, pushes the price of its computers higher
than they should be. To some extent, those arguments are valid. A comparably
equipped HP machine is often hundreds of dollars cheaper than an Apple
alternative. Such high pricing has undoubtedly pushed some consumers away.
Maybe by reducing the price of its computers, Apple can do a better job of
expanding its market in the PC business.