«

»

Sep 19

How Far Can Apple Go

It was said that Apple would launch low-price iPhone with $299 or even lower price. If Apple really did that in the future, that would probably mean that Apple has to expand its business by penetrating developing countries under great pressure of capital market. If that happened, it may be a threat to handset companies with strong branding such as Samsung and HTC. But the negative impact on Chinese domestic companies would be limited because they could provide high value-to-price-ratio products. Meanwhile, Apple would expand its customer base and market share, stimulating stock price to soar even higher.
However, in a mid-to-long-term, Apple’s success is still unsustainable. From the graph below, if you believe, once the technology of chipset and OS becomes mature, probably at the end of next year, the power of consumers would grow rapidly and eventually exceed that of handset vendors. After that, consumers would hate to be recognized the same with the same products and come to define what they want in a distinctive way.