According to Gene Munster of Loup Ventures, Apple’s (NASDAQ:AAPL) choice to maintain the price of its iPhone product will enable the tech giant to gain market share in the smartphone sector.
Loup Ventures’ founder argued that the iPhone is well-positioned in an economic environment where inflation has pressured consumers’ discretionary spending. AAPL’s announcement was that it would maintain pricing. According to him, maintaining pricing amounted to a discount for customers.
Munster said that by controlling its supply chain, Apple was able to protect its profits and avoid raising prices in an inflationary environment.
“Despite rising costs, they retain gross margins of 43%, up from the previous year.” It seems to me that they are simply experts in multiplying the supply chain, “he added.
Munster predicted that maintaining current prices will allow the iPhone to gain “a percent or two” of the market. He mentioned that the product’s market share is currently at 18% worldwide.
The satellite phone, which Munster of Loup Ventures believes will provide “a sense of security” as part of AAPL’s overall mission to safeguard people’s security and safety, was the other key takeaway from the product introduction, in addition to the iPhone price.
See what Morgan Stanley named the biggest surprise from the new product portfolio for additional information on the response to the Apple (AAPL) launch.
Updates to Apple’s iPhone, AirPods, and Apple Watch product lines are included in the company’s new product lineup. This was announced to the general public on Wednesday during a gathering that CEO Tim Cook started.
Customers can purchase the new smartwatch starting on September 16 for a price of $399 for GPS and $499 for cellular.
A new Apple Watch SE with three new colors and an updated rear cover was also introduced. It is 20% faster than the previous Apple Watch SE and features a face that is 30% bigger than the Apple Watch Series 3.
Pre-orders for the new Apple Watch SE can be made right now, and it will be available starting on September 16 for a starting price of $249 for GPS and $299 for cellular.
Featured Image- Megapixl @Rosshelen