360° Coverage : Cook Reveals the Real Cheap iPhone

Cook Reveals the Real Cheap iPhone

The real Cheap iPhone is revealed by Cook

Sep 29 2013, 3:44pm CDT | by

Cook Reveals the Real Cheap iPhone
Photo Credit: Getty Images

The new pricing strategy of Apple had investors very excited at the unveiling of it, but that joy soon turned to worry when market performance was not as they had hoped it would be. Apple lets BusinessWeek in on a little company secret.

They were mistaken. The new cheap iPhone is not the iPhone 5c, but the iPhone 4s, according to Apple CEO Tim Cook. That adds more complexity to the company’s pricing strategy. Somewhere in the midst of all the excitement over the new iPhone models, the old, but still popular iPhone 4s seemed to have been left out of the equation, but not when calculated by Cook.

Apple investors were deeply disappointed when many realized that the lower priced iPhone 5c is still too expensive for the target market. It was hoped that this new more affordable device would create a brand new class of iPhone users, but sales results after launch shows that it just isn’t happening.

Tim Cook encourages investors not to give up hope on the strategy just yet. Although the $549 price tag slapped on the iPhone 5c might still be too much for some potential users to handle, the iPhone 4s is still being sold. In fact, in some places the phone is even being given away for free and comes at a lower price than the 5c in subsidized markets.

Nevertheless, Cook admitted during an interview transcript that Sam Grobart of BusinessWeek posted that selling a low-cost phone was never an objective. Instead, Apple placed focus on simply providing an excellent phone that is able to provide users with a great experience. It just so happened that the company figured out how to do it at a lower cost.

 
 
 

<a href="/latest_stories/all/all/25" rel="author">Bijon Kumar Pramanik</a>
Bijon Kumar Pramanik is an experienced technology writer working since years in the consumer electronics field.

 

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