Why was iPhone 4 abandoned?
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Apple did not completely ignore the consumer demand in the Indian market when it comes to iPhone 4 sales. Before that, Apple had stopped selling iPhone 4 in India, but it was re-launched in January this year, the reason being to increase market share. However, less than four months later, Apple decided to stop selling iPhone 4 in India again, which shows that Apple not only considers sales volume when selling a certain phone, but also has many other factors. The reasons why Apple took the initiative to stop selling iPhone 4 are as follows: 1. Maintaining a high profit level The price of iPhone 4 in India is less than 20,000 rupees (about RMB 2,073), which is the "low-end" model in Apple's mobile phone series. The sales of this phone will lower the average price of Apple products, thereby reducing the profit level of Apple's iPhone sales. Apple's previously released financial report shows that in the second fiscal quarter ending at the end of March, the global average selling price of iPhone fell by US$41 to US$596. Market analysts believe that this is mainly due to Apple's re-release of iPhone 4 in emerging markets and the reduction of the price of iPhone 4S. Strategically, Apple's discontinuation of iPhone 4 will "force" users in the Indian market to buy iPhone 4S. Apple's Indian agent said that after the iPhone 4S price was reduced by 7,500 rupees last month, it has become the best-selling iPhone model in the Indian market. At the same time, the price difference between the iPhone 4S and the iPhone 4 in the Indian market is 3,000 rupees (about 300 yuan), and the price difference between the two is limited, which means that the discontinuation of the iPhone 4 will not significantly affect Apple's mobile phone sales, and it can also help Apple further increase profits. 2. Apple has always resisted cheap models. Apple launches new mobile phones every year, triggering a buying boom, but there are still a large number of consumers complaining that the price of Apple mobile phones is too high. There have been rumors in the market that Apple plans to launch a cheap version of the iPhone to meet the purchasing needs of low-end and mid-range users. In September last year, Apple launched the iPhone 5c, with a starting price of 4,488, which is only 800 yuan different from the iPhone 5s. Consumers generally expect a price of around 3,000 yuan. The launch of the iPhone 5c has greatly disappointed these consumers. Industry insiders believe that Apple launched the iPhone 5c to digest the accumulated inventory of the iPhone 5, because the iPhone 5 did not achieve sales performance similar to the iPhone 4S, resulting in an inventory backlog, and it was not Apple's initiative to lower the product price to cater to market demand. 3. Apple is very confident in making profits Even if the sales of the iPhone 5 are not ideal, Apple still refuses to significantly lower the price level of the iPhone, which shows that Apple is confident enough to make profits. In the competition with Android phones, Apple has indeed maintained a very strong profit advantage. Apple has grabbed most of the industry's profits with lower product sales. From the data, the average selling price of Apple's iPhone has only dropped by tens of dollars in the past few years, which is far lower than the decline in the average price of Android. According to a report released by foreign media in March this year, Horace Dediou, a mobile industry analyst at market research company Asymco, released a report saying that in the past six years, nearly 88% of the profits of the global smartphone industry have been grabbed by Apple and Samsung. Apple accounted for 62% and Samsung accounted for 26%. Although Apple has been surpassed by Samsung in smartphone sales, Samsung is still far behind Apple in terms of profits. According to the global smartphone sales report for the first quarter of 2014 released by market research firm Strategy Analytics, Samsung shipped 89 million smartphones in the first quarter of this year, twice as many as Apple's 43.7 million. However, Samsung's mobile profit was $6.2 billion, only half of Apple's $13.6 billion. However, as the high-end market becomes more saturated in the future, it remains to be seen whether Apple can maintain its high profit level. But what is certain is that Apple will make its best efforts to achieve this goal. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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