Why Apple Needs an Expensive iPhone

It seems that the predictions are being made again about the next iPhone from Apple. They say, and apparently other people feel, that Apple should be producing a much cheaper version of the iPhone than they have done to date. Why ? So they can catch up to sales of Android handsets of course !  Well, here’s why this is totally wrong and why Apple should, in actual fact be producing a much more expensive phone.

iphone 6

Firstly, lets take a look at market share against profits. Yes, Android handsets are selling at a much faster rate than Apple and they are the top sellers. So what ?  Most of the sales are coming from China, the worlds most populated country. These handsets are cheap, no name models that are using Android because its free.  Take a look at the profit margin being made on these phones and you will struggle to see it. Take a look at the profit margin on the lower number of Apple handsets and you will need to stand back to see the number in its entirety.  Apple hold the biggest profit margin out of all the handset manufacturers and, far from producing cheap nasty phones that will blemish Apple’s good name they need to be thinking bigger, better and far more expensive.

A global satellite phone :

These are highly versatile phones, handy in all sorts of places, especially where you can’t get an ordinary mobile signal. And, they are not the nasty ugly and expensive electronics boxes that they used to be either. Take the Terrastar Genus, a Windows Mobile smartphone. OK, it’s not the best seller and it isn’t the best example of a good satellite phone. What it is an example of though is that satellite phones can be made relatively cheaply and more compact compared to old models.

iphone satellite phone

It would be entirely possible for Apple to purchase any one of the existing satellite phone providers for around $3 million, out of the petty cash in fact.  And, they could even spend a few billion on developing their own high-speed, high-capacity global satellite network Not only would they make vast profits on the phones but on carrier charges as well.  Android handsets would never be able to keep up with them and, being so versatile, that’s a bit more of the market for Apple to steal, thus boosting those all important profits even more.  The only way for Apple to stay on top now is to produce something amazing out of the hat, to reinvent the wheel, so to speak and come out with an unbeatable expensive product that everyone needs.

Who would buy such a phone ?

  • Business travelers with expense accounts
  • People who live outside cell coverage areas
  • People who work or live on boats
  • World travelers
  • Government workers
  • Military people
  • NGO workers
  • Emergency workers
  • Contractors
  • Digital nomads
  • Journalists and bloggers
  • Posh rich people
  • People who enjoy outdoor recreation
  • Apple fans who want the very best of everything

Apple needs to produce one of these expensive satellite phones because the high-end business people need one. Don’t you?