I read Linada’s blog (https://blogs.ubc.ca/linda/) called “A cheaper iphone is coming soon？”  and I found it is very interesting that she picked out how Apple’s price change will influence the target market. When Apple creates a new product, it uses the best technology, including the production processes, Retina screen, and the aluminum alloy integrally molded to provide the best products for the market. It is true that people in developing countries classify apple  as a luxury good, but people in developed countries like USA and Canda see apple as a normal good. So if Apple want to lower the price of the iphone in order to increase the potential customers in developing countries. Iphone will lose its representativeness of luxury，and people will see apple as a normal electrical company. I believe although the profit will increase when the cheap Iphone 6 is realsed. In the long term, however, Iphone will lose a lot of customers from the previous target segment, which would result in a deduction of profit. Meanwhile, if Apple introduce this Cheap Iphone 6 in developed countries, I believe the total profit would increase as people in Canada already see apple as a normal good.

On the other side, because the explosive growth in the smartphone market has now shifted to emerging markets like China and India, where there are few carrier subsidies and most people can’t afford phones that cost $600.

Apple’s decision to offer a $99-$149 phone will reduce the amount of profit that Apple makes per phone.  It will likely reduce Apple’s profit margin. But that’s okay. Apple’s profit margin is still extraordinarily high.

I believe that Market share is not something Apple is concerned about, Apple is more willing to produce great product, introduce new ideas and bring good stuff to the world.