A cheap phone, that isn’t cheap!

If you happen to read my previous post, you would know how sorry i am. Yes, strategy gone wrong. The first mistake i did, was to misread the price of iPhone 5C. I thought it would be sold at 25K, but apparently AAPL decided to sell it at 40K. Yes, 40 frickin thousand rupees for a plastic phone.

I can’t believe apple failed to do a proper market research on what a ‘Cheaper price’ means in emerging markets.  Why would someone buy a plastic iPhone 5C for 40K, when they could go for a iPhone 4S which is sold at 29K. I still stand by my original hypothesis; had apple made a real low cost iPhone at 20K, even if they made it less powerful than the iPhone 5S, Indian markets would have gone crazy for it.

So, the trading lesson learnt from this incident is, ‘ Buy on rumor and sell on news, if the news is not what the rumor was (in a negative way) ‘

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2 thoughts on “A cheap phone, that isn’t cheap!

    1. Agreed, 54K is a bloated price. But still what ever the market is, the high end segment which is loyal to Apple will always buy Apple devices irrespective of the price. Sadly, in emerging markets high end segment is too small. Imagine apple making low end devices with fairly cheaper processor and low cost materials at a 15-20K price point. I bet their sales in India would quadruple.

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