An interesting article popped up this morning from Carrie-Ann Skinner with the ARN magazine. It's in relation to the reported release of a low-cost version of the iPhone, according to Bloomberg.
Apparently the iPhone Mini is to be around two-thirds the size of the existing iPhone and lack the distinctive iPhone "home" key for navigation. The smaller Apple handset will allow for a universal SIM so users don't have to remove and replace SIM cards depending on the carrier they're using. It's also been reported the plans will be on a pay-as-you-go basis instead of a contracted 12, 18 or 24 month term.
Now, let's assess a few things with relation to this article. First and foremost - what's Apple's strategy here and ultimately, how does that affect an Australian consumer?
To address the first question - Apple's strategy appears to be two-fold. They're looking to gain market share and market penetration. That's not to say Apple won't even open up new markets previously untouched - though that's pretty unlikely. Apple's strategy is going to be redesign of their wonderful (dare I say unmatched) iPhone to remove some of the more costly features in order to remarket it as a new product with a lower price point for more cost focused consumers - who don't neccessarily see the benefit of some of the iPhone's current features, or can't relate the cost to direct benefits. Apple with the release of this new product, will be able to prove to cost conscious consumers that this product is indeed the right product for them - both in terms of price point to purchase and product features.
How does this affect the Australian consumer? Well, in my opinion, it's not a bad thing. Firstly it's going to introduce a new product onto the smart-phone, mobile phone market allowing the consumer more choice. Secondly it'll broaden the horizons and give business opportunities for retailers, Apple distributors and Apple themselves. More money, means more jobs, more jobs and a healthy economy overall. They're pretty broad strokes, but in general terms, the consumer will have more choice in the market, allowing them to make the best possible decision for their purchase - based on the wider available options. From Apple's perspective, they've just gotten another client (user) in a very sticky market. Recent data shows that the technology take-up rate with Australians is far ahead the rest of the developed world. Think about it - how many people do you know who have more than one phone?
Congratulations to Apple on this market / product strategy. I'm looking forward for the first release of this product and looking forward to see how they'll release the product locally. I'm sure like the iPhone currently it's going to be in super high demand!
Check out Carrie-Ann's original article below;
http://www.arnnet.com.au/article/376430/apple_readies_cheaper_iphone_mini_/?eid=-100&uid=26651
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