Apple is devising a plan to make both investors and phone companies happy.The current cost of the 5S with a 24 month contract is $199 and off-contract its $649. The current cost of a 5C however, is only $99 with contract and only $549 without contract.
The analogy the author used, "early bird, regular and chefs table" relates to people eating at restaurants. People who cannot afford eating at an expensive restaurant will look for the early bird special, the 5C on contract. The regulars will buy whatever is out there on contract without paying too much money. but the people sitting at the chefs table, will go out and buy the most expensive one.
Large wireless phone carriers such as, Verizon and AT&T, are having problems with Apple's new pricing strategies. Now that the off contract 5C is so cheaply priced, many people will just buy the iPhone without the service. People would rather pay the money upfront rather than be stuck in a two year contract. Phone carrier companies will start losing money and if they are made angry, for example, Verizon, then they will take out their$23.5 billion out.
Investors were disappointed with the 5C costs. The investors were expecting what the analysts said, a $400 5C when really it costs $549. The reason they were hoping for a cheaper phone was so people in countries like India and China would be able to afford the new phone.
I do agree with Apple's new pricing strategies. I would encourage people to buy the new 5C so they arent paying the money on a phone that they don't have. At the same time I would try to make the phone carrier companies happy by providing them with benefits.
The advice I would give to make it "affordable' by maybe offering lower prices to countries who cannot afford it. Or offer the lower prices in countries/areas where
The analogy the author used, "early bird, regular and chefs table" relates to people eating at restaurants. People who cannot afford eating at an expensive restaurant will look for the early bird special, the 5C on contract. The regulars will buy whatever is out there on contract without paying too much money. but the people sitting at the chefs table, will go out and buy the most expensive one.
Large wireless phone carriers such as, Verizon and AT&T, are having problems with Apple's new pricing strategies. Now that the off contract 5C is so cheaply priced, many people will just buy the iPhone without the service. People would rather pay the money upfront rather than be stuck in a two year contract. Phone carrier companies will start losing money and if they are made angry, for example, Verizon, then they will take out their$23.5 billion out.
Investors were disappointed with the 5C costs. The investors were expecting what the analysts said, a $400 5C when really it costs $549. The reason they were hoping for a cheaper phone was so people in countries like India and China would be able to afford the new phone.
I do agree with Apple's new pricing strategies. I would encourage people to buy the new 5C so they arent paying the money on a phone that they don't have. At the same time I would try to make the phone carrier companies happy by providing them with benefits.
The advice I would give to make it "affordable' by maybe offering lower prices to countries who cannot afford it. Or offer the lower prices in countries/areas where