Apple's new strategic direction

**eek** · 16 October 2013, 05:57

Originally posted by doodab View Post

I see they have recruited the boss of Burberry. I wonder who their new target market is?

The same as the old target market....

What do you think has changed? They sell a phone that costs $200 to make for $600. They can only do that by not dirtying their hands and entering cheaper markets.

**SimonMac** · 16 October 2013, 06:32

Innit!

**SimonMac** · 16 October 2013, 06:35

Originally posted by eek View Post

The same as the old target market....

What do you think has changed? They sell a phone that costs $200 to make for $600. They can only do that by not dirtying their hands and entering cheaper markets.

Interesting article here:

Apple? They Make The Cheap Plastic Phones, Right? | TechCrunch

**d000hg** · 16 October 2013, 07:56

Originally posted by eek View Post

They sell a phone that costs $200 to make for $600

They'd look a bit silly if it was the other way round. What is your markup exactly?

**NickFitz** · 16 October 2013, 10:31

2% of China's population buys 33% of the world's luxury goods. Burberry has ~~over 100~~ 69 stores in China (but plans to have over 100); Apple has 6.

In other words, they're going for the same high-end market as they already do, and they've hired somebody with experience in the fastest-growing region for that market.

**amcdonald** · 16 October 2013, 10:34

But how long before people just buy knock off Chinese iPhones, it's not like they can't distribute them in China

Some of the copycats seem identical apart from having dual sims, and copyright doesn't seem an issue there for anyone infringing western patents

**SimonMac** · 16 October 2013, 10:48

Originally posted by amcdonald View Post

But how long before people just buy knock off Chinese iPhones, it's not like they can't distribute them in China

Some of the copycats seem identical apart from having dual sims, and copyright doesn't seem an issue there for anyone infringing western patents

KIRF Articles on Engadget

**russell** · 16 October 2013, 10:51

I don't understand why apple don't release a cheap iPhone/iPad that is crippled/lower quality and cost. Say £100 iPhone and £150 iPad. The income they would get from iTunes/app store etc would make it more than worthwhile. People with more income would still buy the top end tulip.

**SimonMac** · 16 October 2013, 10:54

Originally posted by russell View Post

I don't understand why apple don't release a cheap iPhone/iPad that is crippled/lower quality and cost. Say £100 iPhone and £150 iPad. The income they would get from iTunes/app store etc would make it more than worthwhile. People with more income would still buy the top end tulip.

Because they want to be seen as a premium brand, and its a tactic that is working very well for them so why change

Apple's new strategic direction