Sunday, December 23, 2012

Why Apple needs a really expensive iPhone

Some experts predict, and some even argue that Apple will release a cheaper iPhone to compete with Android phone sales. This is crazy. Apple you need is a phone much more expensive than today. We are going to tell why.

iphone apple Por qué Apple Necesita un iPhone realmente caro

Android has a large market share with minimal benefits

Android phones are sold in much larger quantities than the iPhone. So great, that Eric Schmidt, chairman of Google, said that the market share figures are comparable to those that had Microsoft versus Apple, in terms of desktop systems in the last 20 years.

The difference that Schmidt did not mention is that money always wins Microsoft Windows. The main reason that Android phones are sold so well is because many of them are very economical.

It is clear that a small number of Android smartphones, like the Samsung Galaxy S3, are good and profitable terminals. But these high-end devices are not what make the Android market share is so high.

This market share and strong sales of Android smartphones are generated by China. In the world's most populous country, with more than 1,300 million people, about 2 out of 3 phones sold are Android. In fact, one third of all Android phones sold in the world are sold in China. And much of the phones sold in the third world today are Android phones made in China. For example, one of the most popular phones sold in Kenya is now a Chinese terminal called Huawei IDEOS Android, priced at $ 80 free.

These phones for the masses are not as profitable as the Samsung Galaxy S3, and neither are manufactured with materials that pampering. Terminals are made from scrap parts, mostly. They use these phones in large part because they are free.

Also keep in mind that although there are many companies that make Android phones, Apple makes much more money with your iPhone that all these companies together.

To say that Apple should have a budget phone to get the market share of Android is crazy.

It's like saying that Ferrari would make a low cost family car to compete with Toyota. It's like saying that Starbucks should be cheaper, low quality makes coffee in a can to compete with Folgers. It's like saying that Hugo Boss must open a clothing store to compete economically with C & A.

Apple is a premium brand. Located at the sweetest spot market, where large profits. Stick in the mud with Chinese Android phones tarnish Apple's image, or would not have the same support, nor the same quality of manufacture and not the same supply chain.

Instead of a low-priced handset margin, Apple should launch a more expensive phone, with a profit margin even more. A satellite telephone.

Why Apple should sell a satellite iPhone?

A satellite phone lets you make calls from anywhere (while traveling, surfing, while hiking or anywhere where there is no normal coverage). They're great because you can always call, but they are expensive.

If you are thinking of the horrible 90 satellite phones you see in some movies, square and heavy, with large antennas, you may not may know the TerreStar Genus.

The Genus is a smartphone with Windows Mobile, so nobody wants to buy. It's like a BlackBerry but with a little more weight on the back, presumably for the satellite antenna and electronics it needs.

The TerreStar Genus will cost $ 800 free at It works like a normal GSM phone, but you can switch to satellite anytime, for both voice and data.

Can be used with the AT & T network, and the satellite option is an extra $ 24.99 per month above the normal rate, plus 65 cents per minute for each call by satellite.

The TerreStar Genus is a great phone, and satellite service is a great service, nor a global service (that is only for North America).

The issue is that it is possible to make a relatively compact phone, a smartphone with the satellite capacity, and to use more reasonable rates than you would expect.

Apple is not in the business of cheap products that do the same as everyone else. Apple is in the business of re-inventing the industry. Apple needs to re-invent the telephone industry satellite.

Just to give an idea of the scale and proportion, Apple could probably buy any of the existing satellite phone providers for less than 3,000 million (Apple has more than 125,000 million in cash).

Or better yet, Apple could develop its own global satellite network of high capacity and speed, imagine what could be done for less than 5,000 million.

Keep in mind that the implementation of its own network of satellites would be quite expensive. But that Apple would become a global provider of wireless services for decades.

So the company would not only be able to make big profits from each terminal, would be able to earn hundreds or thousands of dollars each user with user fees.

I'd say that Apple could sell an iPhone for about $ 1,500 satellite free, or $ 600-800 with contract. The price should be what it costs to manufacture the Apple phone + fat around $ 500.

While many Android phones are scrambling to match as much as possible with the features of the iPhone, an iPhone satellite would be nearly impossible to beat by competitors.

In addition, a super aspirational iPhone would be an element that would raise the image of the line Apple iPhone. Who would buy a phone like this and pay for these services?

  • Business people who travel a lot and go to expenses paid.
  • People who live in areas without mobile coverage.
  • People who work or live on boats.
  • Traveling the world.
  • Government workers.
  • Military.
  • NGO workers.
  • Emergency workers.
  • Contractors.
  • Digital Nomads.
  • Journalists and bloggers.
  • Rich snobs.
  • People who enjoy the outdoors.
  • Apple fans who always want the best.

The truth is that the Apple iPhone is getting "old", some Android phones already outnumber the Apple smartphone specifications. The solution to this problem is not that Apple will launch a smartphone cheaper and low quality.

The solution is that Apple do the best you can do: reinvent the industry, taking control of its ecosystem, think big and launch the best product in the world.

Apple iPhone need an expensive satellite with a large margin, the jet-set world needs one.

What do you think? Would you buy an iPhone satellite?

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Track | Cult of Mac

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