Apple’s (s aapl) quarterly earnings call is primarily a retrospective affair. They report their numbers for the previous quarter, discuss strengths and weaknesses (and what made them strengths and weaknesses), and spend a little bit of time talking about how they plan on continuing and repeating success next time out. In the end, the only clear message they present is that they’ll keep doing what’s working, and improve on what isn’t. At the same time, they’re dropping hints about the future. Here are some of those hints, and what I think they mean.
We Love the $199 Price Point
On the subject of iPhone pricing, Tim Cook, Apple COO standing in as CEO while Jobs is recuperating, made clear that their $399 and $199 price points were working well for the company. Quite specifically, he emphasized the company’s love for the $199 price point, which is clearly leading to high sales numbers. Interestingly, he didn’t talk about storage size, just pricing.
We could see a pricing move based on strong sales and a shrinking consumer smartphone market that may result in a $199 price point for the 16GB iPhone to stimulate sales. Whether this also leads to a lower cost 8GB phone or a 32GB model, I can’t guess, but we will mostly likely see a pricing change when sales start to dip.
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