Sopped Sales

Apple has more to worry about than the FBI, courts and the government breaking Apple’s privacy engineering. Apple has a peaked market that appears to be limiting their growth. All markets eventually saturate. The smartphone market, in most first-world nations, is saturated, or nearly so. Thus, the number of people willing to pay a premium for Apple mobile devices is almost capped. iPhones – at least in their current incarnation – appear to have reached saturation. iPhones will not compete in second- and third-world markets against $4 Android phones. All markets are segmented. When the segment you dominate becomes saturated, you have to change something before revenue growth abates and stockholders call for your head. The question remains which action is correct. Apple has a brand built around the high-end of their market, so they are unlikely to trash their brand by dropping prices. Since this is basically a segmentation … Continue reading