Sunday, January 13, 2013

The curious case of iPhone mini

The Chinese newspaper hurriedly changed its interpretation of Apple's marketing executive Phil Schiller's comments from "Apple will not push a cheaper smartphone for the sake of market share", to "Apple wants to provide the best products, will not blindly pursue market share".
The change over happens within 24 hours. This might be the subtle indication that mini iPhone is on the way to the market. Phil may be right when he says Apple does not push for cheaper smartphone. The reason is Apple's products are never cheap; take the example of iPad mini, it is priced almost double to that of competition. But he might be wrong when he says that Apple is not pursuing market share. Everyone knows why Samsung ships highest number of smartphones in the world; because it caters to every users need. The increasingly higher rate of android adoption translates into greater developers attention which ultimately results in superior ecosystem. Apple still rules because of its superior ecosystem than for any other reasons. Apple is already trying hard to push their devices to every segments. They have started pursuing market shares. iPad mini is a perfect example.
Chasing the market : Self cannibalization?
The iPad mini's greatest impact is far greater on Apple's own flagship 10"iPad rather than other 7" competitors. Similarly an iPhone mini will mainly cut into the market of larger iPhones rather than into the competitors. Apple consumers are usually placed above price consciousness and they never mind an extra buck for superior quality. But if they are offered a mini versions of that superior quality, they might tend to settle for it. 
So what is the future of Apple? I was reading an article in some tech blogs about "10 things Apple must do to be successful in 2013". The 10 tips were all market driven and somewhat dull and boring. And there came the 11th tip in the comments section. "Get back Jobs from the grave". If not that, they have to get back the innovation to stay ahead. 

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