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Why Are Apple Products Getting Cheaper

Image result for macbook airYou probably read that title and just went, What? and then proceeded to re-read the title. Apple? Cheap products? Yeah right. Most people might scoff at the idea of Apple being a budget company, I mean who can blame poor average Joe who thinks that? Apple came out with a phone that literally costs a thousand dollars. So Apple wouldn't be high up on your list of affordable tech companies. But yet we see a growing list of products from Apple that doesn't break the bank. Why is this?

What Are These Cheap Products?

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A few years ago you'd be hard pressed to find a few good Apple products.But over the last few years Apple has diversified it's lineup. Starting with the iPhone SE, A relatively upto date iPhone with great storage starting at $349. More over Apple is rumoured to bring out a new iPhone SE with upgraded internals and art the same price point.  Apple didn't stop at that they went further they surprised everyone in 2017 with a $330 iPad that was at it's core a very good iPad and it appealed to the average consumer. Keeping with the rumour theme Apple is expected to bring out a $270 iPad this year.Wait I'm not done. We still have the rumoured cheaper MacBook Air and the cheaper iPhone X like LCD 2018 iPhone. So its apparent that Apple wants to spread it's wings into the budget side of things

Why Would Apple Make Cheaper Products?

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Apple can be thought of as the undisputed king of premium products. They've nailed the premium side of things. But the problem with the premium segment is that, the segment has started to plateau. Everyone who wants a smart phone already has one. Therefore you're looking down the barrel of some pretty slim sales if you don't diversify and quickly. Even in countries like India which is seen as as the powerhouse of smartphone sales for the next decade, premium phone sales are stagnant. So cheaper products are where the money lies. Even in developed markets like the United States, people are looking for cheaper alternatives to the Apples and Samsungs of the world and companies such as Xiaomi are looking to enter the US market to cash on this new demand.

So Why Didn't Apple Do This Earlier?

Apple as a company has been in the unique position of being a tech company, a fashion item and a status symbol.So people worried that cheaper Apple products would tarnish the brand. Making Apple less appealing to it's core brand conscious audience. Apple has ingenuously worked around this by reviving or keeping old designs alive. This creates a clear demarcation in Apple's product line up. You have the cutting edge expensive products and the older but still modern products and you can tell them apart with just a glance. This keeps both parties complacent and so far it seems to have been working well. The iPhone SE has been a hit in developing markets and so has the MacBook Air.


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