Iphone 5 is now coming into the market. Unlike the usual, Apple’s shares fell instead of defying gravity. The problem is the new product sales didn’t meet the analysts’ expectation. Comparing Iphone 5 to the prior product, Iphone 4S, there is no big and attractive difference. This leads to the low sales, and the falling of the shares. Iphone sales occupies 50% of Apple’s revenue and 60% of the profit, which determine the annual return of Apple. The investors are now watching the sales number. If Apple doesn’t boost the sales, the shares will keep falling and cause more trouble.
Another problem is the policy in the U.S.. Recently subsidies by the cellphone carries allow the customers switches from one smart phone to another upgrade one by paying less money within the contract days. This action highly reduce the revenue of both the carriers and the Apple.
In the article, Piecky says if Apple introduced a new, lower-priced phone that could sell in Brazil, China, Mexico and other developing markets, that will boost the iphone sales. I am not totally agree with him. As a Chinese, I can see the insane iphone fans. Yet, selling lower-priced phone can increase the quantity demand, but will also overset the business plan and reputation of Apple, which is selling high-tech product.