Apple Targets Mass Market with iPhone 4S Strategy
Apple's new iPhone 4S handset was announced to a reception of mild disappointment at the lack of a dramatic upgrade, but the real revelation at the event was the company's vision for the handset, and its mobile device business, moving forward.
The pricing structure revealed by Apple SVP Phil Schiller indicates the company is aiming to increase the number of users of the phone, essentially by giving customers a variety of price points and toning down the ‘premium’ image of the phone. The 3GS model will still be available, and will be offered for free with a 2 year contract, while the iPhone 4 will be restricted to the 8GB version and made available for just $99 with a 2 year deal. The new iPhone 4S model will form the upper end of the range, being offered in larger 16GB, 32GB and 64GB models.
Samsung has been gaining ground on Apple's market share in 2011, benefitting from Nokia’s fall from grace where Apple has not been able to. Mid-range Android handsets are gaining significant ground in most markets, muscling in on Apple's share of smartphone business, so Apple seems to have taken the opportunity to widen the appeal of its phones, while also addressing the problem of declining iPod sales. Although Apple has never been challenged in the portable MP3 player market, its iPods are nearing the end if their life cycle and sales have dropped by 20 per cent in the past year based on figures for Q3.
While the lack of a brand new iPhone 5 superphone may disappoint Apple fanatatics, the new iPhone range seems cleverly targeted to tap into a broader market and bolster Apple's products in the music player market. Sure, none of us have been waiting with baited breath for a tuned up iPhone 4, but the restrained approach may prove a wise one in the long run.
iPhone news posted by Jan Moys on 05 October 2011
iPhone, iPhone 4, iPhone 5, Apple, iPod, iPhone 4S, Samsung
http://www.guardian.co.uk/technology/2011/oct/05/iphone-4s-apple-wider-audience?newsfeed=true
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