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Apple's 'Low End' Strategy Disappoints

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Apple's first product launch for the iPhone in Beijing, China

07/08/2010

Apple's iPhone 5 is targeted at a lower price segment of the market. It will cost $99 in the U.S. In China where Apple has about 5% market share compared to 18% for Samsung, Apple still focusses on the high end of the market because the iPhone 5C will cost about 4500 yuan or about $733. Customers in smaller cities in China are looking for phones in the 1000 to 2000 yuan range. China's Lenovo, HTC and Huawei are increasing market share with lower priced smartphones. In China subsidies for the phone kick in later with lower phone bills unlike what happens in the U.S., where the phone costs less when purchased.

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Apple Won't Go for Broke in China

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Apple, China Mobile Sign Deal to Offer iPhone

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China Deal Gives Apple Big Market to Court

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Apple's pricing strategy for iPads and iPhones

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Apple's pricing strategy for the iPad at $499 helps it maintain a grip on this rapidly growing market, making it difficult for competitors. Either competitors such as Amazon price lower to gain market share and have low margins or barely profitable product as with the Kindle at $199, or price relatively higher and gain only modest market share.

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Apple Faces Dilemma Over Strategy in China

Wall Street Journal 04/24/2013

Apple's Gilded Approach to Value

Wall Street Journal 09/10/2013

Apple's 'Low End' Strategy Disappoints

Wall Street Journal 09/11/2013

Apple's Dual iPhone Strategy in Doubt

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With New Apple iPads, Tablets Move Closer to Passing PCs in Sales

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Google Squeezes Margins on Moto G Phone

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Apple's share price and financial performance

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Apple Snaps Growth Streak

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Apple's Smartphone Market Share Falls

Wall Street Journal 04/28/2013

Apple's 'Low End' Strategy Disappoints

Wall Street Journal 09/11/2013


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