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Tim Cook may regret dismissing low-cost smartphones as

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The most striking takeaway from Thursday?s big Bloomberg Businessweek interview with Apple CEO Tim Cook was that he views smartphones that are priced in the $300 to $450 range as ?junk? that Apple wants nothing to do with. While it?s certainly true that Apple has made its money by selling high-end products such as MacBooks, iPhones and iPads to well-off consumers in developed countries, Cook should realize that people in emerging markets who are buying cheap smartphones aren?t simply destitute peasants who will never be able to afford Apple products. Rather, they?re part of a rising class of consumers in economies that are growing very quickly ? in other words, potential future Apple customers.
 
And this is why Cook?s view on low-cost phones being ?junk? is potentially destructive to Apple?s interests: He is seemingly shrugging off low-income consumers in countries such as China, India and Brazil whose economies have been growing fast and whose populations total nearly 3 billion people.
 
In theory, Apple could have developed a smartphone that was cheaper to produce and could have priced it at between $350 to $450 to make it more affordable to people in these three markets. This would have certainly given the company a good foothold in those countries since consumers have shown that they?re willing to pay a premium for Apple products as long as they don?t have to sacrifice feeding themselves to buy them. But instead Apple released the iPhone 5c at $550 off contract and arrogantly declared that ?we?re not in the junk business.?
 
I don?t expect this to hurt Apple in the short-term since its customers in North America, Europe and the Asia-Pacific region will continue to buy high-end iPhones at a healthy clip. But in the long-term, having a minimal presence in China and India is not healthy for the company.
 
App developers in these countries will start making apps for Android and even Windows Phone first and foremost if the iPhone?s share in these markets keeps tanking. And by the time the ?junk? buyers in emerging markets see their incomes rise to the point where they?ll be able to afford an iPhone 5c or 5s, they might still stick with Android and Windows Phone simply because that?s what they?ve grown used to and it?s where all their favorite apps are.
 
I?ve learned to not second-guess Apple?s business decisions over the years because the company has absolutely shown that it knows what it?s doing. At the same time, though, I can?t help seeing writing off billions of consumers because they?re supposedly interested in ?junk? as a strategic mistake.

 

 

 

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People buy apple because they want to be pretentious. Simple as that.  They buy it for the logo, they buy it for the image, they buy it for the status.  It's the entire reason I don't like Apple at all.

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People buy apple because they want to be pretentious. Simple as that.  They buy it for the logo, they buy it for the image, they buy it for the status.  It's the entire reason I don't like Apple at all.

 

Yes, and their products are utter garbage.  They don't last, no build quality or resale value.  /s

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People buy apple because they want to be pretentious. Simple as that.  They buy it for the logo, they buy it for the image, they buy it for the status.  It's the entire reason I don't like Apple at all.

 

i bet you people will buy the gold iphone more than the other colors,because its easily shows that you have "the new iphone"

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And many people buy they android "junk" phones because they do not need a power house for doing the basics.  Like browsing internet, email, and facebook.  One of the nice things about Android.  Can buy a phone priced right for you and what you need it for.

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Yes, and their products are utter garbage.  They don't last, no build quality or resale value.  /s

 

I've had just as many issues with my apple hardware as anything else. I appreciate the competition and market changes apple brought to the PC market, but i just have 0 interest in computing devices based upon style/design.   Don't get me wrong, i love thinner, faster and lighter but Apple didn't invent that.

 

I never said they were garbage.

 

I typically run my pcs in the ground, resale value is meaningless because i'm not keeping up with the jonses. If i need to do that, i can replace a CPU, add an SSD or increase ram with commodity hardware at commodity prices.

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And many people buy they android "junk" phones because they do not need a power house for doing the basics.  Like browsing internet, email, and facebook.  One of the nice things about Android.  Can buy a phone priced right for you and what you need it for.

 

Exactly.  They can get a full smartphone experience without spending tons of money.  I like that about Android.  Unfortunately this isn't a market Apple is interested in. 

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Again I don't know why people would expect Apple to delve into the low cost market. They never have in the past with their desktop/laptop line. They will always be a premium brand. Every market weather its electronics, clothing, appliances, cars has a premium brand and those brands rarely sell below their class

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i bet you people will buy the gold iphone more than the other colors,because its easily shows that you have "the new iphone"

What you mean "you people"!!!!?

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 A lot of people buy apple because they want to be pretentious. Simple as that.  They buy it for the logo, they buy it for the image, they buy it for the status.  It's the entire reason I don't like Apple at all.

FTFY.

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What you mean "you people"!!!!?

i typed you by mistake i guess, i meant just people

 

edit: never mind,reading it again, what i meant to say is "i bet you" that people

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What you mean "you people"!!!!?

500full.jpg

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I've had just as many issues with my apple hardware as anything else. I appreciate the competition and market changes apple brought to the PC market, but i just have 0 interest in computing devices based upon style/design.   Don't get me wrong, i love thinner, faster and lighter but Apple didn't invent that.

 

I never said they were garbage.

 

I typically run my pcs in the ground, resale value is meaningless because i'm not keeping up with the jonses. If i need to do that, i can replace a CPU, add an SSD or increase ram with commodity hardware at commodity prices.

 

 

Your previous post implied that people won't buy their products because they are reliable, they like the build quality, they may favor the software better, etc. I use a little bit of everything. And they all have their uses. I frequently switch between my Lumia 920 and my iPhone 4S while at work. Love the interface and design on the Lumia, but it's missing some key apps that I need to use. I also have my two Macs at home, but have lately preferred to just use my Surface Pro for business and leisure.

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What you mean "you people"!!!!?

 

 

 

500full.jpg

 

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Yes, and their products are utter garbage.  They don't last, no build quality or resale value.  /s

 

Some truths in that :P probably 5/10 iPhones I see have broken screens, I honestly can't remember seeing any other make with broken screens in the last few years.

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I can't stand Tim Cook. He thinks only high priced stuff is worthwhile and the rest is "junk". I don't like apple because: high price &lock in(not limited to apple).

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If low end devices are junk, then Apple's devices are over priced junk. Just saiyan XD

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People buy apple because they want to be pretentious. Simple as that.  They buy it for the logo, they buy it for the image, they buy it for the status.  It's the entire reason I don't like Apple at all.

 

Sometimes they like the phone too. This "it's brainwashing / for children / for the prententious" from Windows Phone and Android users is extremely tiring. I would never stand on such a high horse myself, indirectly claiming that I'm somehow unlike these silly users because I clearly chose a much better phone. The mindset backing such an idea is worse than what you attack Apple users for. I only have one, single wish: "why can't we all just get along?" Different operating systems, different hardware, different app markets, for different tastes. What a concept.

 

Kind regards,

A non-bragging iPhone user

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People buy apple because they want to be pretentious. Simple as that.  

Totally. There can't possibly be any other reason.

 

I can't stand Tim Cook. He thinks only high priced stuff is worthwhile and the rest is "junk". 

 

He literally said that "there is always a large junk part of the market". Would you really disagree with that? I certainly wouldn't.

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Apple acts like they don't go with the lowest bidder like everyone else.

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Yes, and their products are utter garbage.  They don't last, no build quality or resale value.  /s

last two apple products i had didn't work for more than a couple months and one of them the apple store refused to repair or replace. it was the catalyst that led me to get a windows phone.i'm not going to pay 2x as much for a product that is no better than any other on the market.

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those with better income in the emerging markets wont buy low cost junk

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i bet you people will buy the gold iphone more than the other colors,because its easily shows that you have "the new iphone"

Correct. This is happening in China.

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