Apple's iPhon5c and the Emerging Markets (China And India)
Apple has focused a lot on emerging markets such as China (and India) lately and I guess this is where rumours of them making a cheaper iPhone originated from. I would like to run the numbers, for China particularly.
China has a population of about 7,000,000,00. Since many people don't know much about China, their perception of China is that its a huge country where the majority of the population lives in poverty. That may actually be true, but that doesn't paint the whole picture. Now lets look at the actual numbers, well these aren't actual numbers but they are an indicator. Lets say the majority of china is indeed poor, lets say 60% of the population, that would be 4,200,000,000 people. And lets say the middle class is about 30% ( 2,100,000,000) and the affluent population is only about 10% (700,000,000).
Now looking at these numbers, and looking at what emerging market means, it means that the middle class is growing and the poor class decreasing. That said, Apple has always targeted the high end of the market with all their products. And that's what Apple is doing in China, Targeting the Emerging Middle class to Affluent population. They don't need to make a cheap phone to target China because China's affluent class, which is about 10% of the country, is MORE THAN DOUBLE THE SIZE OF USA'S ENTIRE POPULATION!!!!!
Obviously, my numbers are far from accurate, but they paint a picture. A picture that many people fail to see, a picture that shows Apple's venture into China is not to target the poor Chinese people, its to target the average Chinese people, who happen to have descent disposable income and who happen to be more than the population of the whole of Europe!!!!