The high end of the smartphone market -- one in which Apple (NASDAQ: AAPL ) plays pretty much exclusively -- appears to have saturated. Now, while some may mistake this for "on the decline," the fact of the matter is that this segment as a whole isn't growing anywhere nearly as much as the broader smartphone market. In order to grow, Apple needs to gain more share at the high end. The upcoming iPhone 6 is Apple's best shot at a return to profit growth.
The iPhone 6 will be more expensive to makeA faster processor, more RAM, larger chassis, bigger/higher resolution screen, and other goodies don't come cheap. Apple needs to pay for it. Now, there's no doubt that it will squeeze its suppliers to the extent that it can, but even still, it would be remarkable if Apple actually found a way to keep the cost of its next-generation iPhone 6 flat relative to the 5s.
No comments:
Post a Comment