Apple sold more than 37 million iPhones in the last quarter, and it is still going strong.
Apple broke its own record by more than 15 million handsets and this made Apple the top smartphone manufacturer in the world.
However, The Wall Street Journal (WSJ) has spotted a weakness in Apple’s game plan. It seems the Apple’s handset sales are not doing very well in countries where wireless carriers do not offer subsidies on smartphones.
According to this report, the iPhone only accounted for 5% of smartphones sold in Greece last quarter. And only 9% in Portugal. On the other hand, in countries like US and UK, iPhone has more than 25% smartphone market share.
The problem is with iPhone’s hefty price tag. People in US enjoy carrier subsidies that knock the handset down to less than $200. And people that subscribe to operators in other countries that do not offer the discount are forced to pay full price.
Full retail pricing on the iPhone 4S starts off at $649, and goes up in $100 increments. Even the two year old iPhone 4 (8GB model) will still run you $549 without any subsidies. 3GS is not much cheaper.
Now let us have a look at Android handsets. There are high-end Android phones that cost just as much as (if not more than) the iPhone. However, there are also countless Android handsets that are quite a bit cheaper. W are talking two or three hundred dollars at full price. Given this information, and the fact that economies around the world are facing a big economic crunch right now, you can see the popularity of Android phones in the countries without carrier subsidies. This also explains the reason for Android handsets making up close to 50% of the overall smartphone market.
To increase its sales, Apple needs to make iPhone cheaper in some countries.
Source: iDownload Blog