IPhones are notoriously expensive. They are of great quality and high expectations, so those that are loyal to iPhone know exactly what they are getting and that they will be paying a pretty penny for it. However, there have been rumors continually circulating about Apple creating more budget friendly iPhones so more people will be able to afford them, and maybe they will lose the snobbish title they have for only serving those that can afford a $600 phone. Does that remind you of anything? Here is a refresher.
A few years ago, eight to be exact, Dell was having a little bit of trouble. Although they had steady income, even increasing profits, their stock prices were dropping. Dell thought if they dropped prices in 2006 they could make a comeback. Stock holders wanted growth, Dell was hoping with the dropped prices they could gain the growth stock holders wanted to see. When Mr. Dell himself took over to try to save his company, he closed factories and made every attempt possible to cut prices. Profits increased in 2008 then took a nose dive in 2009. Dell is not talking about going private.
Apple of today is huge and taking in revenues in higher volumes than ever before, yet Apple stock is down 35 percent. Apple has some huge competitors, especially Android. Android devices have the upper hand when it comes to smartphones right now. Apple has to make some changes to get ahead of its competition.
With the dropping stock prices, do these hint that Apple maybe meeting the same demise as Dell? Is Apple strong enough to pull out of this? There are numerous speculations regarding this situation and why it does not look promising.
For example, Apple was originally intended as a hardware company. Hardware companies come and go throughout time. It seems real platforms tend to stick around a bit longer. Platforms such as Microsoft Windows, Java, Play stations portable, and Linux, all have a nice history behind them and are thriving steadily.
Another speculated problem would be that Apple does not offer a wide enough variety. They offer limited number of devices that do not compete with each other. Whereas Android offers many types of smartphones with all different features and capabilities, varying in price, memory, and tassels. Some Androids offer everything all of the bells and whistles that others offer just a few but they all run on Android platform.
Apple users are satisfied with Apple products. Even though a lower cost Apple smartphone would open up more markets for Apple, it could over all damage the real value of Apple. The risk may not outweigh the benefits if not approached carefully. Does Apple really have a problem or are they just over thinking their drop in stocks? Only time will tell.