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EricLi
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Main focus on technology stocks.
  • IPhone Shouldn't Be Cheap 0 comments
    Sep 23, 2013 6:02 PM | about stocks: AAPL

    When Apple (NASDAQ:AAPL) first announced the iPhone 5C, Wall Street was not too happy because the price of 5C was set, $549.99, too high for emerging markets. However, Apple investors should be happy that the 5C is not cheap. The reason Apple is popular in China, a major market for Apple, is that it's a premium brand. Chinese people are known for buying brand name items. The psychology is that if the iPhone is being sold too cheap, fewer Chinese will like the brand. To some extent, Apple and Samsung will be the same company if Apple rolls out cheaper phones like Samsung just to capture emerging markets. The major differentiation between Apple and Samsung to the Chinese is that Apple is a company of ONLY premium products. Also, lowering the price of iPhone means lowering its quality, and Apple shouldn't care about pricing when it's focused on building the best product.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: Samsung, Smartphone, iPhone, 5C, China Stocks: AAPL
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