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Apple plans to market to people who aren't rich

Will release lower priced products
Tue Mar 01 2011, 15:20

FLOGGER OF SHINY TOYS Apple might be getting ready to release the latest incarnation of its technology, the Ipad 2, but that hasn't stopped it from thinking about less well-heeled customers, that is, the rather larger market of people who don't have more money than sense.

A report at the Wall Street Journal has reproduced part of a research note from Apple watcher Toni Sacconaghi of Bernstein Research that suggests an increased interest in more budget aware shoppers at the fruit-themed firm.

Sacconaghi had a briefing with some of the cappuccino company's executives including Tim Cook, Apple's COO, during which he picked up some interesting tidbits.

"While Tim stopped short of explicitly stating that Apple would pursue a lower price Iphone, he did state that Apple was working hard to 'figure out' the prepaid market and that Apple didn't want its products to be 'just for the rich,' but 'for everyone'," noted Sacconaghi before suggesting that the Silicon Valley company is looking to work its way into the lucrative pre-paid market.

"Apple executives - including himself - had spent 'huge energy' in China, noting that it is 'a classic prepaid market'," he explained.

There is a rather obvious solution to this, which is that Apple could release a lower priced smartphone for the pre-paid market. However, it probably has something much more magical in mind. µ

 

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Comments
Yes please! For all the wrong reasons.

Hey I am quite excited about the possibility of seeing iphones coming to prepaid markets. And not because I don't have an iphone already! In fact, I keep a net10 unlimited plan for all my talking and texting and the iphone for the... well, you know the really useful iphone stuff. If I could get the iphone on prepaid I would immediately ditch at&t and not have to carry two phones (never mind the savings!).

posted by : Motormouthmike, 31 March 2011 Complain about this comment
Finished cleaning out the rich...

It's very admirable how Mr Jobs is single handedly going to change an economy struggling with the limitations of a recent recession. He's going to make Apple products affordable now, as opposed to in the past where the non rich still bought his grossly inflated products, and thereby probably contributing to the reason we had a recession in the first place. Mayve he's seen the error of his ways, or more realistically he's seen his previous customers return to ergonomic tracfones, just to do the job of a phone, and walk away with change in the back pocket...maybe enough to afford a bogroll.

posted by : Qoth, 04 March 2011 Complain about this comment
New lower prices

Because there are even more stupid poor and middle-class than there are stupid rich people.

posted by : Morely the IT Guy, 02 March 2011 Complain about this comment
@Gio

Yup rich people are very careful with their money look at Charlie Sheen he was careful to only spend 40 000 dollars on hookers in just under a week.

Rich people don't weight their options when they know what they want. Apple has become a status symbol and that's what they are after. It's like a Mercedes, when you have real money you don't give a shit.

posted by : Eric, 02 March 2011 Complain about this comment
Apple to target the poor... Too.

An Apple product for the poor? Wao! What a nice thought... But considering it is a good idea. We will see if the (cheaper) product will get is place in this range of market.

posted by : marc, 02 March 2011 Complain about this comment
Happy are the poor

Sure, once Macolytes have spent all their money are their expensive white goods, they're not rich any more are they?

posted by : Simon, 02 March 2011 Complain about this comment
That said Apple does generally make pretty good products

Aston Martin and Rolls Royce make pretty good products too... but they're not in my budget...

Although, it's probably more like comparing Mercedes to Acura...

I still don't see why people rip Windows so bad and suck on OSX so much... Windows 7 is a pretty damn nice OS... and OSX is nice, but it's not flawless either... sorry... Apple just doesn't impress me that much... and they definitely don't justify their prices to me...

posted by : RobinPanties, 02 March 2011 Complain about this comment
Rich

Well those of us in the well developed world can mostly afford these things, or at least borrow money at 14%+ to get them. When looking at the global market for these devices $200-300 for a phone and $500-600 for a tablet is a pretty extreme expense for most people.

That said Apple does generally make pretty good products, and while I agree with you entirely when it comes to hardware (most Apple hardware is identical now anyway) Windows is a pretty sad platform compared to Mac OS as far as stability and ease of use goes.

posted by : Eric, 02 March 2011 Complain about this comment
Rich?

*Quote*

"Apple plans to market to people who aren't rich".

I rarely find Apple fans to be rich, just foolish.

Rich people are more carefully to weigh out their options (they are very cheap and always looking for a deal), then upon realizing that you can get a comparably equipped maching, with the same CPU, Memory, HD, video card for half the price, and are unable to run most available software, to which they need to have windows installed on their MAC and pay even more, they stay with windows.

posted by : Gio, 01 March 2011 Complain about this comment
aboutus
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