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"Market segmentation by introducing lower-cost models is nothing new." That's not how Apple became the most profitable company in the world. The first thing Jo
by bsdpython 12y ago
"Market segmentation by introducing lower-cost models is nothing new."
That's not how Apple became the most profitable company in the world. The first thing Jobs did when he returned to Apple was cut out all of the excess product lines.
- scott_karana 12y agoI guess you're not being sarcastic. The iPhone was perhaps the only line without a entry-level component: the plethora of iMacs, iPods, and iBooks each had expensive/professional and entry/cheap lines, if not more than two. And even then, Apple typically left the previous iPhone model around at a discount so price-sensitive consumers could buy a discounted 4S instead of a cutting-edge 5, for example.
- jkestner 12y agoYeah, that was triage. He then immediately introduced a low-cost PowerMac called the iMac. Repeat with iPod Mini/Nano, MacBook Air (second take), iPad Mini, Macintosh LC, and so on. I did say "lower-cost", not "low-cost". Interestingly, the iPhone 5c may not be designed to sell like hotcakes itself, but to frame the higher models as better deals. That's what I meant by market segmentation. I also suspect it was harder to keep their margins on the newer CNC'd metal iPhones as they dropped to the entry-level tier. The iPhone, even more so with the 6/6+, currently seems to be the only line that bucks the trend.