Expanding the iPhone’s Market Share

Eric Savitz, reporting on a research note from analyst Toni Sacconaghi, who had an interview with Tim Cook last week:

The analyst says Cook “appeared to reaffirm the notion that Apple is likely to develop lower priced offerings” to expand the market for the iPhone. Cook said the company is planning “clever things” to address the prepaid market, and that Apple did not want its products to be “just for the rich,” and that the company is “not ceding any market.”

The hard thing, as I’ve said in the past, is getting the monthly service bill for smartphones down. Virgin Mobile is leading the way, at least here in the U.S. — imagine a $149 iPhone with one of those plans. Anyone who thinks Apple won’t expand from the high-end down, price-wise, isn’t thinking about how the company captured the media player market with the iPod a decade ago. Cheaper iPhones are inevitable.

Monday, 28 February 2011