Whether the low-end brand benefit the company focus on the high-end production

These days, I have always considered about a question since we did the assignment about Tesla. In that homework, one of my recommendation is to produce a new brand which face the lower class, like Mercedes-Benz has Smart. So whether the low-end brand benefit the company focus on the high-end production originally.

As we all know, after iphone 5, there are two new types for iphone,  and one of them is cheaper. Maybe it is not difficult for most of the American families to afford iphone, but it is still not a low expenditure for most of the Chinese families. However, I seldom see someone use 5C. If people like iphone, they would choose 5S. The others will purchase some cheaper ones like Samsung, HTC or Blackberry.

Why the low-end production of iphone do not get a success as Smart’s? In my opinion, 5C did not have an unique advantage among all these thousands kinds of cellphones. Only the lower price may not make the consumers love this cellphone, or the price is not low enough. On the contrary, Smart has a quite low price, novel looking as well as the good quality, and all these make it special. Only the special things could catch people’s eyes right?

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