Does Apple have a price problem?

With consumers choosing cheaper iPhone models, Apple may face a struggle in getting customers to pay up.

By Aimee Picchi Jan 25, 2013 2:16PM

Businessman using smartphone -- Image Source, Image Source, Getty ImagesWhile Apple's (AAPL) iPhone is still the most popular smartphone with U.S. consumers, it appears many customers are opting for less expensive models. 

Verizon on Tuesday said that more than half of the iPhones it sold in the fourth quarter were older models, which sell for much less than Apple's iPhone 5. After reporting quarterly results that disappointed investors, Apple shares took a tumble this week.

While supply constraints were one issue, discounts on Apple's iPhone 4 models were also likely a culprit, reported 

One Verizon dealer told the Wall Street Journal that his customers leaned toward the iPhone 4 and iPhone 4S, because they didn't see a reason for paying up for the iPhone 5. There was also tougher competition from Android phones, and new phones from Nokia (NOK), the dealer, Dane Scism, said.

Apple may be losing some of its shine with consumers, too. The company slid from a list of U.S.' hottest 10 brands, as ranked by market research firm YouGov BrandIndex, which questions thousands of consumers each day. In 2011, Apple was ranked 10th. 

Two new brands, meanwhile, entered the top 10 list: the Kindle, the e-reading device from (AMZN), and Google's (GOOG) YouTube.

More on moneyNOW

Jan 25, 2013 2:57PM
You mean the Apple zombies finally woke up and started looking at prices?
Jan 27, 2013 9:29PM
Recored profits and record number of Iphones sold. Ya they got  a problem!
Jan 28, 2013 11:21PM
Apple is a high end hardware manufacturer and has been since day one. Yes they do some software (not mapping software) but it is all about high end (aka expensive) hardware. They would rather sacrifice anything and everything rather then reduce price and gain market share. Not a bad strategy - for today - but there will be (and were) times where this model simply won't (and did not) fly.
Jan 28, 2013 10:03AM
I don't see that as a problem. That's why car makers and a host of other industries have tiers of products, JUST LIKE APPLE. Remember the 5 is a new form factor requiring new connectors and adaptors. A temporary roadblock.
As a dual platform ( Mac and PC) IT engineer for 3 decades I have made my choice long ago, When i need to get some serious work done i'll use my Mac, when i want to  watch stuff blow up i'll use a PC. I'd starve to death waiting for a Mac to break but i revel in the flaws of Microsoft products that fail so often for no reason it keeps me in Lobster and Champagne
Jan 28, 2013 10:07AM
You get what you pay for. Every non Apple phone I have ever bought had problems before two years. None of our Apple phones have had any problems. I still have Apple computers that are 10 years old and still work.
Jan 25, 2013 7:57PM
Now if they could make their products accept pc software like everyone else... 
Jan 28, 2013 2:43PM
It's not just the cost of the phone, the pricing on the plans is also higher than on Android phones. I've had an iPhone for several years now. I like it very much, but I see friends with Android based phones, and the functionality seems very comparable. It hasn't escaped my notice that the monthly plans are also less. After I've decided that I have had this iPhone 5 long enough, I will be shopping on the cost of the monthly plan as well.
Jan 27, 2013 1:56PM

The problem is they don`t split the stock.Millions would buy if they split

the stock 6 to 1.

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