This is Apple’s game to lose and it looks like they’re fucking up.
The iPhone 5C is too expensive, plain and simple. Apple doesn’t seem to realize that their target audience has shifted. They’re no longer looking at developed countries. They are looking at the emerging markets. Apple is currently about 300 million devices behind Google. They need to close that gap. iOS is currently on about 700 million devices. This post looks at how they can get to the next 700 million.
First let’s look at the iPad. This device is arguably doing better than the iPhone because it still has decent marketshare. I will admit that Apple priced the iPad Mini too high, but that’s water under the bridge. Going forward Apple needs to fill out their iPad line. Here’s what I envision as the ideal iPad lineup:
iPad (10 inch) $349 – $375
iPad Mini (8 inch) $299 – $325
iPad Nano (6 inch) $249 – $275
iPad Micro (4 inch) (formerly the iPod Touch) $199 – $225
You’ll notice that I’ve repositioned the iPod Touch. As time goes on we should expect to see Apple sell fewer and fewer iPods. The era of a dedicated music device is over. Unless you’re a gym rat you probably don’t own/need an iPod.
Additionally you’ll notice that I’ve changed the incremental pricing between products. Apple needs to move away from $100 for each upgrade and bring it down to $50 to $75. This should still leave room for profit while increasing the viable market.
What’s really interesting about those prices is that it shows that there is already a spot for what I call the iPad Nano. A six inch device that sits between the iPod Touch/iPad Micro and the existing iPad Mini.
What do you think? Does this make sense or is it completely off base?