But there was a problem: the majority of the sales were for the iPhone 5S, while sales of the iPhone 5C lagged. The problem was the cost of the plastic-cased 5C; at around $100.00 with a two-year contract, the “cheaper” version simply cost too much, especially for the emerging markets like China, where Apple had high hopes for the iPhone 5C.
Obviously, the initial demand for the iPhone 5C over the first few weeks appears to be disappointing. Best Buy Co., Inc. (NYSE:BBY) announced it was cutting the price of the 5C to $50.00 on a two-year contract between October 3 and October 7.
But while the discount was only for four days, you kind of wonder if there will be a more permanent price cut ordered by Apple should sales lag.
The iPhone 5S is selling very well, but for Apple to really break out of its shell, the company will need to cut the cost of the iPhone 5C in order to get a foothold in the emerging markets.
Without a major price cut, it will not be easy for Apple to break into a mobile market that focuses on attractively priced smartphones—a market that includes established rivals, such as Nokia Corporation (NYSE:NOK), whose mobile assets are to be acquired by Microsoft Corporation (NASDAQ:MSFT), Samsung Electronics Company Ltd., LG Corporation, and major upstarts, such as Huawei Technologies Co. Ltd. and ZTE Corporation, based out of China.
For Apple, the massive mobile market in China is what the company desperately aims to grow. The company’s current market share in China is insignificant and lags behind both the domestic and foreign makers.
So far, an official distribution deal with China Mobile Limited (NYSE:CHL), the largest cell phone operator in China with 500 million-plus users, has yet to materialize and this is worrisome. Apple needs China, especially a deal with China Mobile.(...)Click here to continue reading the original ETFDailyNews.com article: Apple Inc. (AAPL): Why I’m Hesitant To BuyYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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