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 CNN.com. 


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 Amazon.com (AMZN), and Google's (GOOG) YouTube.


More on moneyNOW

18Comments
Jan 25, 2013 2:57PM
avatar
You mean the Apple zombies finally woke up and started looking at prices?
Jan 27, 2013 9:29PM
avatar
Recored profits and record number of Iphones sold. Ya they got  a problem!
Jan 28, 2013 11:21PM
avatar
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
avatar
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.
avatar
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
avatar
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
avatar
Now if they could make their products accept pc software like everyone else... 
Jan 28, 2013 2:43PM
avatar
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
avatar

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

the stock 6 to 1.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The stock market ended the Wednesday session on a mixed note with small caps displaying relative strength. The Nasdaq Composite (+0.5%) and Russell 2000 (+0.4%) registered modest gains, while the Dow Jones Industrial Average (-0.2%) and S&P 500 (+0.01%) underperformed.

Despite the mixed finish, the key indices traded higher across the board at the start of the session after the advance reading of second quarter GDP surpassed estimates (4.0% versus Briefing.com ... More

MSN MONEY'S