A day after any event is usually too early to make sweeping judgements however investors and analysts alike can be forgiven today for being distinctly under whelmed by Apples launch yesterday of two of its new Iphones , the 5C AND 5S.
Given that industry rumor mill had been working overtime with buzz that Apple would price the cheaper 5C model to directly compete in Asia (China and India) with android competition Apple will find that the younger generation in those markets will find it hard to stomach a $700 charge in China for a new 5C and even those in well-developed markets will question if upwards of $500 is really that “cheap”?People in these markets want reasonably priced phones that work well and look good ,Samsung could be called the driver there ….
Apple responded well to the challenge thrown up by Samsung by widening the range but one does feel that cast iron commandment not to cheapen the brand by introducing basic models is at direct odds with what its trying to do? Apple has always been known for its build quality and innovation however those two attributes do come at a price and unfortunately with the advent of the 5C and 5S it will be perhaps a price that most of the market will not pay?
Certainly the 5S is a serious piece of kit with fingerprint recognition and new A7 silicon chip but less spendthrift canny consumers in western markets will struggle to justify the price tag in these fiscally challenged times.Most analysts have read this wrong as nothing here suggests that this will help drive headline growth and break us out of the range in stock prices…Apple in that respect will a safe dividend payer but perhaps not the exponential growth and innovator that we had all become used to.The brand will remain premium but look elsewhere for major volatility on stock price,