Why A Budget iPhone Is A Great Idea: 4 Reasons
by Investometrica
In our latest article on Apple (AAPL) "China and Apple: The Beginning Of A Beautiful Friendship", we introduced the main difficulties the firm is facing in the Chinese smartphone market (the biggest market in the world, in terms of volume), to merchandise its flagship product. We emphasized the fact that Android handsets are approximately two-thirds cheaper: while an iPhone's average price is 4523 yuan ($725.25, or about 9% of the PPP GDP per capita), the average price of an Android handset is just 1393 yuan ($223.36, 2.5%). This could be fatal in emergent markets, which are well-known for enjoying a low smartphone penetration rate and high price elasticity. This article develops this particular point in a broader context. read more »
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