Week ending May 6, 2016: $92.72 (-$0.35) May 8, 2016 19:55:50 GMT -5
Post by rickag on May 8, 2016 19:55:50 GMT -5
Apple if it chooses this path it would be a risky path to follow, because once chosen it is a path not easily changed.
Keep in mind for 7 years the base price was $549. Apple added $100 for bigger screen.
Now the difference between lowest price and latest phone is $250. If they don't drop the price they will canabilze their higher priced iPhones. No need to sell more 5SE then necessary.
I don't think the extra large screen increased the cost that much. I think they can preserve margins around 37-38 with $100 off.
In the past I recall how they would increase Mac prices by $200 and then lower every few years. They are experts in pricing their products to maximize profits.
The 5SE is selling well due to a $50 cut. The Apple Watch got a boost with $50 cut. I think the iPhone 7 will sell very well at $549 with the 6S at $449 (-$200 cut).
I think WS will want revenue and unit growth and not worry so much about small gross margin adjustments.
Yes, WS wants increased revenue and units. You may be right, the iPone 5C and iPhone SE could be trial balloons by Apple seeking the best path to increase unit sales at lowere price points, as part of a move toward recurring service / ecosystem revenues.