There is little doubt that the Apple Inc. (NASDAQ:AAPL) iPhone is a status symbol. This nifty little gadget combines a cell phone, personal entertainment device, camera, video camera, and computer all into one amazing product. The iPhone 5 is also very expensive. Fortunately for Apple Inc. (NASDAQ:AAPL), some markets are buying into the trend.
China is one of Apple Inc. (NASDAQ:AAPL)’s biggest markets right now (it’s in second place) as some of the nouveau riche flaunt their wealth by purchasing the new iPhone. China’s consumers are similar to India’s consumers, as both demographics tend to have disposable income.
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The one key difference is that Apple Inc. (NASDAQ:AAPL) keep their focus on selling the iPhone 4 to the Indian market. Most Indians can’t afford to spend 45,000 rupees for the iPhone and so they opt for the more affordable Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) Galaxy Grand which retails for 21,500 rupees.
To keep up with the competition, Apple Inc. (NASDAQ:AAPL) offers a trade-in discount of 7,000 rupees for the iPhone 4. This is worrisome for a company that wants to maintain their high-end status.
There are also some markets that are already over Apple Inc. (NASDAQ:AAPL). One large European mobile carrier, France Telecom, admits that selling the iPhone may be hard to do. The company’s chief executive officer Stephane Richard said that customer trends are shifting and there aren’t so many people adopting this trend.
The iPhone is still a huge seller and it doesn’t look like that is going to change anytime soon. Although the Cupertino-based tech giant has lost a little bit of ground, it’s not too late to prevent a more significant loss. If Apple Inc. (NASDAQ:AAPL) introduces the rumored budget iPhone, they may just end up crushing competition.
For much of the world’s economy, low prices beat high-end trends. If Apple Inc. (NASDAQ:AAPL) wants to remain relevant in the market, the company will need to make some changes. Hopefully, it won’t be long before Apple Inc. (NASDAQ:AAPL) closes that gap.