Henry Blodget the 46 year old American former equity research analyst and senior Internet analyst, now CEO and Editor-in-Chief of The Business Insider, has published an article titled ‘Apple's Cheap iPhone Is A Great Move For The Company’. Blodget states “At the end of this year, when Apple's cheap iPhone comes out, it is going to be amusing to listen to all the Apple fans who consoled themselves about Apple's loss of market share by dismissing competitors' phones as "cheap plastic crap." Because the new cheap iPhone is supposed to have a cheap plastic back. …But more importantly... Apple's decision to finally launch a cheap iPhone is a great move by the company. It's a move that is at least a year late, unfortunately, which has helped Apple lose a lot of global market share to competitors like Samsung.…Because the explosive growth in the smartphone market has now shifted to emerging markets like China and India, where there are few carrier subsidies and most people can't afford phones that cost $600. By insisting on maintaining the premium prices of its phones, Apple has missed out on this growth in the past couple of years. …Apple's decision to offer a $99-$149 phone will reduce the amount of profit that Apple makes per phone. And, relatedly, it will likely reduce Apple's profit margin. But that's okay. Apple's profit margin is still extraordinarily high--the highest in the industry, by a mile. Apple's profit margin, even after accruing for taxes that the company mostly doesn't pay, is an astounding 26%. …No other hardware companies have margins that are anywhere close to that high. …Apple has sacrificed revenue growth and platform growth by deciding to confine itself to the "premium" market. And, meanwhile, Apple has raked in such an astounding amount of profit that Apple has no idea what to do with the cash piling up on its balance sheet.” Inspired by Henry Blodget, Business Insider ow.ly/gQZtW Image source Financial Times photos ow.ly/gQYZu Apple’s cheap iPhone is a great move (January 21 2013)

Henry Blodget the 46 year old American former equity research analyst and  senior Internet analyst, now CEO and Editor-in-Chief of The Business Insider, has published an article titled ‘Apple’s Cheap iPhone Is A Great Move For The Company’. Blodget states “At the end of this year, when Apple’s cheap iPhone comes out, it is going to be amusing to listen to all the Apple fans who consoled themselves about Apple’s loss of market share by dismissing competitors’ phones as “cheap plastic crap.” Because the new cheap iPhone is supposed to have a cheap plastic back. …But more importantly… Apple’s decision to finally launch a cheap iPhone is a great move by the company. It’s a move that is at least a year late, unfortunately, which has helped Apple lose a lot of global market share to competitors like Samsung.…Because the explosive growth in the smartphone market has now shifted to emerging markets like China and India, where there are few carrier subsidies and most people can’t afford phones that cost $600. By insisting on maintaining the premium prices of its phones, Apple has missed out on this growth in the past couple of years. …Apple’s decision to offer a $99-$149 phone will reduce the amount of profit that Apple makes per phone. And, relatedly, it will likely reduce Apple’s profit margin. But that’s okay. Apple’s profit margin is still extraordinarily high–the highest in the industry, by a mile. Apple’s profit margin, even after accruing for taxes that the company mostly doesn’t pay, is an astounding 26%. …No other hardware companies have margins that are anywhere close to that high. …Apple has sacrificed revenue growth and platform growth by deciding to confine itself to the “premium” market.  And, meanwhile, Apple has raked in such an astounding amount of profit that Apple has no idea what to do with the cash piling up on its balance sheet.”

 

Inspired by Henry Blodget, Business Insider ow.ly/gQZtW Image source Financial Times photos ow.ly/gQYZu