Analysts: Apple is pricing and distributing the iPad better than the iPhone

[RaduTyrsina]

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This week, Bernstein Research analyst, Toni Sacconaghi, shared his thoughts on the tablet and smartphone market, outlining their implications for Apple.

Apple’s fierce competition with Android has been seen in the tablet and smartphone sector alike. Recently, the Cupertino tech giant has experienced a drop in fully fledged iPad shipments. Nevertheless, according to Sacconaghi, Apple is doing a better job in pricing and distributing its tablets than it is performing with the iPhone.

“Ultimately, we see several differences between Apple’s approach to the smartphone and tablet markets. The iPhone left a price umbrella for other smartphone vendors to offer cheaper unsubsidized smartphones, even at the premium end. […]Other smartphone vendors using free Android software were able to price below Apple for unsubsidized phones and still earn gross margins above 30%, especially on high-end smartphones.â€

But when the iPad is concerned, no such facilities are available, maybe due to the fact that the Apple tablet was cheaper than other interior featured models when it was launched for the first time. But now the competition is adding even cheaper price tags. However, the iPad enjoys a strong presence worldwide via Apple’s carrier partners, Apple stores worldwide and third party re-sellers.

Sacconaghi seems to feel that the iPad will eventually fare out better than the iPhone, especially since Apple has been known to follow the lowering pricing trend with the release of the iPad Mini. He believes the move will allow the tech giant to preserve its market share.

Source: Barrons

 

[s2mikey]

Apple also has a lot more quality competition for the iPhone versus the iPad. The iPad is basically the tablet to have and it isn't even close. The iPhone On the other hand has to battle with the excellent Samsung offerings and some others. Just the way it is. They could cut their price and that would certainly help.

 

[AQ_OC]

I don't think cutting the price on the phones will help much...I see lots of folks with the 16GB iPhone...I just think the hotness in the cell phone market is gone....Even Samsung's newest offering was flat in terms of hardware....most new features were software related -- and they will be buggy and hard for users to truly use. That's about all there is let for innovation in the phone space....What apple needs to do is push iOS as far as it can go...and make the screen larger...and, most importantly, move on to the NEXT thing. ASAP.

 

[Kaykaykay]

I don't think cutting the price on the phones will help much...I see lots of folks with the 16GB iPhone...I just think the hotness in the cell phone market is gone....Even Samsung's newest offering was flat in terms of hardware....most new features were software related -- and they will be buggy and hard for users to truly use. That's about all there is let for innovation in the phone space....What apple needs to do is push iOS as far as it can go...and make the screen larger...and, most importantly, move on to the NEXT thing. ASAP.

For me, smart phone features have outstripped my needs. I don't see new features that I must have.

I do like a larger screen phone, which is what switched me to Android after three generations of iPhone. Price wasn't a consideration. I'd be willing to switch back to iPhone, but not without a bigger screen.

I know other users who switched from iPhone for larger screens as well.

 

[KevinJS]

Looks like I'll be getting an Android phone for work, so I'll be interested to be able to compare the two.

 

[Kaykaykay]

Looks like I'll be getting an Android phone for work, so I'll be interested to be able to compare the two.

Do you get to pick the model? I love my Samsung Galaxy Note, but there are some Android phones I would not want for free, lol.

 

[KevinJS]

Do you get to pick the model? I love my Samsung Galaxy Note, but there are some Android phones I would not want for free, lol.

No. So far I've only had the promise that new phones are on their way, and my boss couldn't tell the truth if his life depended on it, so I'm not holding my breath.

It will be handy to be able to compare it against my iPhone before contract renewal later this year.

 

[Kaykaykay]

No. So far I've only had the promise that new phones are on their way, and my boss couldn't tell the truth if his life depended on it, so I'm not holding my breath.

It will be handy to be able to compare it against my iPhone before contract renewal later this year.

Hope it's something at least decent.