We discussed whether Apple should launch a mid-range iPhone
In the last few quarters Apple has reported a more than notable drop in revenue from the sale of iPhones, and most analysts point out that price is one of the key factors when an average user decides not to buy a next-generation iPhone. Currently, Apple only has a catalogue of high-end mobile phones that are quite expensive and inaccessible to some pockets. If we look at other brands such as Huawei or Samsung have in addition to their high ranges other models with ‘ perores ‘ features at a lower price, which are called medium ranges. This fact leads us to wonder whether Apple should take the example and release a more economical mid-range computer in order to rebound in sales.
If Apple chose to launch a mid-range iPhone, it is obvious that the range of potential users would open up much more, since paying 1000 euros for an iPhone is certainly something that many people cannot afford or simply do not see the point. There are many people who are looking for a device that works well at a lower price and that is why many also choose to buy devices from previous generations that now have a very good price.
If the sales trend continues along this path, Apple knows that it must change its strategy. For the moment they have tried to boost sales of the iPhone XR , the cheapest device they launched in 2018, with a major marketing campaign and offering various discounts to users who choose to buy it in exchange for giving away their old device and facilitating financing.
This hasn’t stopped working, because even though the iPhone XR has tried to pull the sales cart, the iPhone XS and the iPhone XS Max are still dragging the market. The solution would be to launch a mid-range iPhone that would sacrifice many of the team’s more premium features in exchange for a lower price.
This would be nothing new for Apple since if we look at the iPad market, there is a great variety of models at different prices. Some are very focused on education and the most basic users with a price that is around 300 and 400 euros, and then there are the iPad Pro that are designed for a more demanding public in terms of features and that already amount to more than 800 euros. This same policy could be perfectly transferred to the iPhone range and without a doubt sales would increase because although it is true that less money would be earned for each iPhone sold as it has a lower price, selling a large volume of these devices could end up compensating.
Apple here has a major challenge ahead that must be addressed in the coming quarters, as we see the iPhone losing ground among the masses either because people do not buy them or because it extends the life of their older equipment and does not renew them. It is true that Apple may not be interested in launching a mid-range and may want to sacrifice these benefits because it already has another ‘economic leg’ to stand on.
Until a few years ago, the iPhone was the main source of income for the company but with the measures that have been taken now this has changed completely. As we have seen in the latest presentation of the company’s economic results, the service category is growing by leaps and bounds in addition to other equipment such as the Apple Watch or the iPad. This could lead Apple to take no action on sales of its iPhone as it can continue to rely on other product categories. This could certainly have been very different a few years ago when the iPhone was mainly relied on and this drop it is suffering right now would have caused a bit of panic in Cupertino.
Many people think that the rumored iPhone SE 2 may be the solution, but the truth is that this device by the rumors we are hearing these days do not look like it will be a midrange device by incorporating a chip of last generation . But if you remember, when the first generation iPhone SE went on sale thanks to the leftovers that were left in the company it ended up disappearing after a few minutes thanks to its price. This may be very present in some managers of the company right now.
In my opinion, Apple must understand that it cannot depend on people spending 1000 euros on one of its devices because with the alternatives on the market it is difficult for someone who does not like technology very much or who has a reduced budget to end up buying it. But it is possible that if they launch a mid-range like other brands they will cover much more market and their market share and global importance will end up increasing which in the end is what most companies want.
This is our vision and you can have another. We encourage you to leave your impressions on this subject in the comment box.
