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Why doesn’t Apple release a truly cheap iPhone to capture more market share?

Even if Apple does launch a truly cheap iPhone, it is still a long way off, and there is a high probability that it will not make much contribution to Apple's mobile phone occupying more market share by then, let alone That's right, profits have increased.

1 If Apple launches a truly cheap version and continues it, it will mean that Apple has truly completed a major and profound transformation

That is, Apple is determined to change its long-term style of play. The high-end, high-end, and low-end products are launched simultaneously, and the strategy of releasing multiple models a year is implemented. This is a disruptive change. It must be because we are full of confidence in changing the long-term single high-end positioning. The confidence is due to the self-determination of diversification or comprehensiveness. Terminalization will make the prospects better.

Positioning changes are overall changes. It clearly shows that the goals and objectives have been changed or improved. They are to occupy more market share and obtain more sales profits in the future. Therefore, the positioning change has a long-term nature. Especially for future profits, we are no longer satisfied with the long-term stagnation of more than 70% obtained by selling about 200 million mobile phones. This is especially in line with Apple's long-term super businessman's pursuit of profit. Therefore, this has become a relationship with Apple. Among the many changes and the overall transformation, there is only no change and no transformation.

2 Apple’s changes and transformation must be due to finding the basis and method to solve the problems it is currently facing.

There are many problems, and only the following four are briefly listed.

(1) How can a truly cheap version allow Apple mobile phones to capture more market share?

As a latecomer, the truly cheap iPhone cannot seize more of the market share that existing cheap phones have long occupied. It certainly cannot rely solely on the power of Apple’s mobile phone system and brand.

(2) Do “everyone like” iOS among mobile phone consumers?

Apparently not. Apple mobile phones have long been competing with more than one brand of high-end Android phones for share and profit sharing. Apple mobile phones are not invincible.

(3) Is this the only reason for Apple’s small mobile phone market share?

Definitely not. There are definitely various reasons. Samsung mobile phones are still strong and the Chinese mobile phone group is on the rise. The two main reasons why I don’t like iOS are that the price is too high. Apple mobile phones are like high-end mobile phones of other brands, but they are mainly chosen and liked by high-end users.

(4) How likely is it that the combination of high-priced, medium-priced and low-priced Apple mobile phones will sweep the entire mobile phone industry and make 90% of mobile phone manufacturers cry in the toilet?

This will not become a reality, a fact. Just talking about Apple's cheap iPhone, the hardware configuration must be lowered, so it is impossible to attract too many long-term consumers of cost-effective mobile phones. User stickiness based on personalized needs cannot be easily changed, let alone be completely changed. The degree of loss is not special but a general rule. Moreover, the largest proportion of users buy cheap mobile phones, resulting in the largest proportion of cheap mobile phones. This is one of the trends and trends of the mobile phone market even in the future.

3 What are Apple’s concerns?

Obviously including but not limited to what is written above. In addition, Apple has been resting on its laurels in technology for a long time, resulting in a lack of innovation. This is not only a concern for mobile phone consumers, but also a concern that Apple should have. It is a big enough and long-term concern.

If it really wants to implement overall changes and transformation, it means that Apple no longer wants to stick to its business model. I want to change, I am changing, that’s good. However, changing, especially innovation, the model that has been implemented for a long time does not just require courage and a mentality of not being satisfied with the status quo, not to mention that this model is generally successful.

The key is that we must correctly understand many problems in advance and then prepare effective and effective responses. Judging from the fact that it has only launched a few iPhones that are not truly cheap for more than 3,000 yuan, Apple should still have a clear understanding of the problem of launching cheap versions of mobile phones. What is not yet certain is not on the agenda at all. At most, we have some confidence in the launch of mid-range mobile phones, but we have not yet made up our minds to continue to implement the mid-range mobile phone strategy to solidify the new model and new positioning. In fact, it is far from being solidified in the market. , Apple should still make efforts to launch mid-range mobile phones from time to time.

The biggest problem facing Apple right now should be stabilizing its existing high-end market share. This is because despite the introduction of price reduction measures and mid-range mobile phones, the market share is still small after all, and has a continuing trend, especially in the face of various factors that can lead to continued decline. Therefore, the biggest concern is naturally that no matter how small it is, we must consider how to stabilize the original users and win new users, especially considering that we must adhere to and strengthen the strategic layout based on high-end mobile phones in order to maintain and improve the existing users. high-end image and high profit levels. If it cannot maintain even a small market share, it will shake the long-term brand foundation and the profit pillar it has established, even in the Chinese mobile phone market, which has contributed a lot to Apple for a long time.

Apple’s mobile phones, which have always been flaunted with high prices in recent years, have also been testing the bottom line of the market and consumers. After the iPhone The cheaper iPhone SE has attracted a wave of consumers with a budget of 3,000 yuan. However, the sales volume of mobile phones above 3,000 yuan is still not comparable to that of mobile phones priced within 2,000 yuan. It can be said that the thousand-yuan phones in the 1,000-2,000 yuan range are the best. The main force in sales, so why doesn’t Apple launch a thousand-yuan phone to quickly increase sales?

For a mobile phone manufacturer, sales volume and profit may be the sales data that they are most concerned about. As an American company, Apple’s pursuit of profit margins is particularly high, and European and American shareholders Compared with the company's sales data, I prefer to focus on profit margin performance, because it symbolizes the company's development prospects. It is difficult to form a strong strength if there are only sales profits. Therefore, Apple has focused on the high-end market for many years, making all its products and prices high-end, but it does not care much about market share. Of course, with the improvement of its brand power, Apple's product lines, including the iPhone, have also achieved good sales.

However, in recent years, we have also seen Apple begin to launch some cheap products, such as iPad mini and iPhone SE. In fact, Apple has The high-end market has also begun to experience a lack of innovation. Faced with competition from the Android mobile phone camp, Apple's market share continues to decrease. Coupled with the sluggish economic environment, Apple's financial report will be ugly if it does not delve deeply into the low-price market.

However, Apple is not yet ready to increase sales and market share at all costs. The basics are still there, so the iPhone SE is more about testing the market’s response. In the future Apple will definitely not update such a 3,000-yuan phone frequently. If Apple really launches a thousand-yuan phone, regardless of sales, it will definitely have a bad negative impact on Apple’s brand, and judging from the configuration of the iPhone SE Look, the hardware level of Apple's thousand-yuan machine is very worrying. At this price, it may not be acceptable to consumer groups who pursue hardware cost-effectiveness.

Good question. I understand that a truly cheap iPhone refers to a model that costs 2,000 yuan or even cheaper. Why doesn’t Apple rely on its own system advantages and supply chain advantages to launch a truly low-end phone? How about competing with Android's low-end product line? In fact, if you analyze it carefully, you will find that there are many reasons, but the core reason is still the dominance of brand value combined with cost control.

No brand can truly cover the entire market

In fact, no brand can truly cover the entire market. A brand must initially have its own brand Positioning, if a brand blindly pursues a large and comprehensive brand, it is likely to overturn in the end because it does not have clear competitive capabilities and segment advantages. Today's Apple is positioned as a technology company targeting mid-to-high-end products. Its main field is consumer electronics, and its business format is mainly retail. Under this positioning, Apple should be the best company in building an integrated ecosystem of software and hardware. At the same time, it has a complete industrial chain and core technologies.

Over the years, Apple’s impression on consumers has always been that it strives to create excellent products and a perfect experience. This is also the reason why it has been at the forefront of the industry in terms of experience and quality over the years. Of course, all of this has also made Apple Apple products have always been priced higher, giving people the impression of high-end electronic products. So over time, most people will form an impression in their minds that the products produced by Apple are of high quality, high price and good experience. This impression is the value accumulated by the Apple brand over the years. This is also the reason why it will not be replaced by other brands at present.

Apple began to try to take the mid-range machine route this year, so it launched the iPhone SE2. However, it can be seen that although Apple has ditched the A13 iOS13 combination, it is still determined when other hardware conditions are relatively average. The price of 3299 fully demonstrates that Apple will not really touch the low-end market. Even though the price of 3,299 has already knocked many products out of the Android camp, in the lower-priced market below 3,000 yuan, Apple probably won’t touch it, because the lower-priced market will lose its brand. If value and brand influence are touched blindly, the brand's premium ability will be greatly reduced in the future. No brand will be so short-sighted as to lose long-term benefits for the sake of temporary benefits.

Production costs are not so easy to suppress

Although Apple’s brand has a huge premium and earns more than 70% of the profits in the mobile phone market, We must also be aware of a problem, that is, Apple has almost the highest material cost among all brands of mobile phones. Whether it is the procurement of original product parts, processing or assembly, it can be said that Apple’s production costs in all aspects are higher than those of other mainstream mobile phone manufacturers. Once it comes to the low-end mobile phone market, you must significantly reduce production costs, otherwise there will be no profit margin at all. Apple has been using independent chips for many years, and its spending on processing and assembly is almost the same as in the mobile phone industry. The highest, plus it is very difficult to keep the overall production cost of core hardware such as memory and motors very low.

Unless Apple breaks the existing model and begins to frantically purchase hardware from various suppliers and assemble mobile phones with patchwork solutions to reduce costs and launch low-end products, this will obviously deviate from the The brand’s value proposition over the years.

If Apple really wants to compete in the low-end market, Apple should launch another brand

In fact, if Apple really wants to compete in the low-end market, it will be like Honor For Huawei, Redmi launches a sub-brand just like Xiaomi. Although everyone knows that this sub-brand is made by Apple, it can be completely separated from the main brand in terms of original brand positioning. But this is still full of risks, because low-end products will inevitably lead to more unsatisfactory experiences and functions, and consumers will inevitably have greater negative emotions, and these will eventually be implicated in the popular parent brand. , which will inevitably lead to more debates about brand and quality, and may eventually lead to many fragmented public relations issues.

So since the profits of low-end products are very thin and may bring potential risks to the already mature main brand, then why take the risk? After all, Apple’s current share and profit margin It has been very successful in the mobile phone market. In the future, when the hardware becomes more and more saturated and weak, they will still have the software ecosystem as a back garden to continue to produce profits. It seems that there is really no need to take risks to seize the low-end market where there is no big profit. You must know that during 618 and Double 11 every year, apart from the crazy sales of iPhones in the price range of around 5,000 yuan, the remaining ones that can be sold are actually those thousand-yuan phones. This shows Apple’s voice and influence in the mid-to-high-end market. , and the remaining brands are competing so fiercely in the low-end market, it seems wise for Apple to stick to the existing model.

Many netizens are wondering, why does Apple only buy high-end phones worth five to six thousand yuan or even tens of thousands of yuan, and not sell low-cost phones? Although Apple has also launched two models such as iPhone SE, the price is about three to four thousand yuan, which is not cheap. Many netizens say that if Apple mobile phones are sold for less than 3,000 yuan, there will be no domestic mobile phones.

In fact, Apple does not have "cheap models" priced at 3,000 yuan. You can open JD.com and Tmall, select the price range from 1,000 yuan to 3,000 yuan, and then search for Apple phones, right? Can you still find a lot of results?

That’s right, Apple’s cheap phones are the old model phones from previous years, such as iPhone 8 Plus, iPhone 7 Plus and even iPhone 6s Plus. These old Apple phones have not been discontinued and can still be purchased online. New machine.

The price of a new iPhone 7 Plus 128GB is less than 3,000 yuan, which is relatively cheap compared to flagship phones that often cost 5,000 to 6,000 yuan. The price of iPhone 6s Plus is just over 2,000, which is considered cheap.

Although these are older models of Apple phones, the performance of the iPhone has always been relatively strong. Take the A10 processor of the iPhone 7 Plus as an example. Its performance is basically equivalent to that of the Kirin 970. Although it is a bit outdated, there is no big problem for daily use and playing some simple games.

Although the performance of iPhone 6s Plus is weaker, if you only use daily apps such as WeChat, Alipay, and iQiyi, it is still relatively smooth to use. Moreover, iPhone 6s Plus can also be upgraded to the latest iOS 13 system, which is enough for general use.

Of course, some netizens feel that the performance of old mobile phones such as iPhone 7 Plus and iPhone 6s Plus is not enough, and they want to use Apple's latest A13 processor without spending too much money. Although such a request is a bit overwhelming, it is not without options. For example, the new iPhone SE launched this year, although the initial price is 3,499 yuan, the price during the 618 period has dropped to less than 3,000 yuan, which is already considered a cheap mobile phone from Apple.

In fact, the new iPhone SE is basically a "core-replaced" version of the iPhone 8. Except for the CPU, other accessories are copied from the iPhone 8. It stands to reason that even if such a phone costs 2,000 yuan, Apple will still have it. It makes a lot of money, and more people will definitely be willing to buy it.

But the reason why Apple does not sell the new iPhone SE too cheaply is because it is worried that this phone will impact the high-end market. Because the processor of iPhone SE is the same as iPhone 11 Pro Max. If the iPhone SE is sold too cheaply, some users who do not have high requirements for mobile phone screens and photography will all buy iPhone SE, and the more expensive iPhone 11 may not be sold.

The profit of an iPhone 11 priced at 5,000 yuan is much higher than that of an iPhone SE priced at 3,000 yuan.

Therefore, if Apple pursues the low-price market, it will inevitably lose part of the high-end market. This is undoubtedly "picking up the sesame seeds and losing the watermelon." You must know that all you earn from selling cheap phones is "hard-earned money". The profit from buying a high-end phone is equivalent to selling 10 cheap phones. Moreover, Apple's high-end phones ship more than 200 million units every year. In this way, there is no It is necessary to go into the budget phone market again.

This question is very interesting. Today, when mobile phone tactics are popular, the sales of Samsung and Huawei are based on all-round coverage. Only Apple still sticks to its old business, let alone It feels like a sin to release a cheap version of the iPhone to capture more market share, or even to release a few more mobile phones! Is this really the case?

Apple has already released a cheap version of the iPhone, but there is a big gap between what Apple thinks is cheap and what the market thinks is cheap.

Apple’s first “cheap version” of the iPhone was made of plastic iPhone 5C, but this phone did not bring more share to Apple. Because at that time, you could already buy many Android flagship phones for the price of 3,000 to 4,000 yuan. This price was really not cheap for consumers!

However, Apple suffers from costs and branding, and the price cannot drop to more than 2,000, so the sales performance in this price range is not ideal, so after the iPhone 5C, there will be no follow-up. But since then, the price of Apple mobile phones has been higher from generation to generation. After the iPhone

The first was iPhoneXR. At that time, sales exceeded iPhoneXs and iPhoneXsMax, but many people were still not satisfied with the price. After Apple saw the market reaction, it also made adjustments. The XR was transformed into the iPhone 11. This can be regarded as the standard version of the chair, and the price has also been discounted to a certain extent, and the sales volume is even better. Occupying the market at low prices is not Apple's original intention

Apple's system does not require largeness, but rather pursues profit margins. If Apple adopts the strategy of low-price dumping, Apple's share will definitely increase. Looking at the PC market, Apple notebooks have a share of about 10, but not so many mobile phones (single-year sales ratio, overall user ratio There are still some).

As for the Apple mobile phones that everyone is talking about that cost less than 2,000 yuan, that is even more impossible. Look at this year’s second-generation iPhone SE and the iPhone 8 after a few years, and the chip is the same. The selling price is more than 3,000, and this is without 5G or full screen. Although there are rumors that the next generation of Apple will not increase its price (mainly because no one will buy it due to the increase in price, and Apple has tasted the benefits of the second-generation iPhone SE), I believe that the lowest version will still lose some configurations.

The route Apple is taking now is high-end products. If you want to mention some low-end products, it will have an impact on the sales of its own high-end products (after all, Apple only has one set of chips per year, plus IOS, and finally The core parts are all there). In addition, developing low-end products requires redesigning, which requires more investment. If the profit margin is too low, it is better to sell old models at a reduced price.

However, with the rise of Android phones, Apple’s sales have indeed had a certain impact in recent years, so Apple also needs some affordable iPhones to tap new users. The appeal of IOS is still Quite big. But at present, Apple can only achieve parity, not cheapness.

It’s not that Apple doesn’t want to be cheap. Do you know how much the VAT is on an Apple mobile phone? 16% is given to the tax department, just like when you buy a joint venture car.

Anyone who buys an Apple phone from the official website knows that Apple will issue a VAT invoice to the user. Why are smuggled Apple phones cheaper? Because there is no tax.

No matter how cheap an Apple phone is, as long as it comes from formal channels, there is VAT! The charge of 16 yuan for 100 yuan is borne by the buyer! Got it!

With the release of cheap iPhones, how can we raise the vanity level of some Apple fans, how can we make them realize the glory that Apple has brought them, and how can we let them show off their iPhones. How to make Apple make more money

I extended this question in a previous question. The original question was "With a budget of 4,000 yuan, should I buy Honor 30 or iPhone SE 2nd generation?". I recommended se2 at the time, and finally asked a question: "I still have a question: If Apple's price drops further to 2,500, or even 2,000, what impact will it have on the entire mobile phone industry?"

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Why doesn’t Apple produce a “truly cheap” mobile phone to capture the market? 1. Profit

What businessmen pursue is profit. The current Apple model only controls the highest profit in the supply chain. part. As hardware costs rise, Apple's profit margins are already declining. If cheaper models are launched, more research and development costs will be consumed, which will further reduce gross profits.

2. Brand positioning

Quoting a classmate on Zhihu, “A briefcase that comes directly from a factory without a brand may cost 120 yuan in quality. LV’s 6,800 yuan one is even better.” Judging from previous experience, Apple has made several "cautious" attempts, starting with iPhone 5C, iPhone SE, and even now xr, but each time it ended in failure. It is also impossible for Cook to build Apple into a cost-effective or even cheap brand image. Among the top ten best-selling models in the world, Apple accounts for the largest share.

3. Financial report analysis

Judging from the statistical data of Q1 and Q2 in 2020, global mobile phone shipments can only Let’s look at the first quarter of 2020. Judging from the financial report, Apple's services, wearable devices, and smart homes have increased or performed stably, but these should be Apple's mid- to long-term focus.

In short, Apple should not consider cheap models at present, and may "try cautiously" in the mid-range market.

Everyone thinks that Apple will put down its pretensions and make cheap models, or focus on asset-light services, smart homes, and wearable devices. 5G is here, is Apple ready? In addition, facing the continuous efforts of the Android camp and Apple's loss of innovation, everyone can express their opinions on how Apple will develop in the future and leave a message later.

This will only make yourself miserable. Huawei is a chestnut. A large number of low-end mobile phones flood the mobile phone market. A large number of trolls maliciously slander friendly forces every day, affecting brand stability.

Apple’s costs are not high in the first place. , but the selling price is high, especially for the Chinese market, and not everyone likes ISO, I don’t like it, closed means restriction,