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Terror of cannibalization now rules Apple


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Apple iPhone 5C Price
Fear is a good servant, but a terrible master. And fear now clearly rules Cupertino — the fear of cannibalization. Apple is already receiving a master class in product cannibalization theory and practice in the tablet category. The iPad average selling price has tumbled faster than projected over the past two quarters. It looks like that lesson has stung; the decision to price the iPhone 5C at $99 with a two-year contract is a substantial surprise. At this price point, there is zero chance of the "value" phone eating into the iPhone 5 or iPhone 5S sales significantly.

 

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Did the writer of this article even watch the conference?

 

The 5C is replacing the 5. So it looks like there is a 100% chance that the 5C will cut into the 5 and 5S sales.

 

People dont want to pay $ because of their financial situation and will go with the cheaper version.

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I doubt that, at least in Europe, Apple has any chance into cutting it's way to the mass market without making something new. iOS is out of the trends, now Lumias are coming up with Windows Phone etc.

Android has, and will, hold it's stance amongst a certain group of people.

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