(Apple’s Senior Vice President of Worldwide product marketing Phil Schiller discusses the new iPhone 4s at the company’s headquarters in Cupertino, California on October 4,2011)
With the disappointment surrounding the release of the iPhone 4S, rivals to Apple could take a bigger share of the phone market. Even though iPhones are the world’s best selling smart phones, Android phones (Samsung, HTC, LG and Motorola) have a greater combined market share than Apple’s iPhone. Apple’s biggest rivals Samsung Electronics, HTC, and Nokia increased their shares right after the release of the iPhone 4S. Apple’s decision to not launch new hardware gives rivals the opportunity to catch up to Apple’s lead before the iPhone 5 arrives.
Apple plans to keep their lead by lowering the prices of their phones, the iPhone 4 will sell for $99 on a contract and the older 3GS model will be available for free on a contract. Analysts note that Apple’s decision to lower prices will help them expand into the low end smart phone market. Despite the disappointment with the iPhone 4S, Apple will still sell millions of iPhones because Apple has such a strong customer base and brand name.
What do you think of Apple’s decision to lower prices instead of releasing a new phone?