Tuesday, February 05, 2008

Apple updates iPhone and iPod Touch

I found this paragraph from the NYTimes Tech blog rather interesting:

“Second, Apple appears confident of demand that it is not using this moment to lower prices on the existing models. But then again, Apple is very good at capturing the money from the price-insensitive fans who need to have the very latest. After the uproar over the $200 cut in iPhone prices last year, I would think it will want to be delicate in its pricing moves.”
If history is anything to go by, the number of price-insensitive customers (not necessarily fans) of Apple products has been growing quarter-on-quarter. I wonder what will happen when this “crowd’s” numbers start to decline, which will be an inflection point in Apple’s product pricing strategy. As things stand currently, Apple continues to make hefty profits on its hardware, there seems to be no dearth of buyers wanting Apple hardware, which pushes their quarterly earnings higher, which means they invest more in building new hardware. Lather, Rinse, Repeat…

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