Free iPhones? Ron explains:
What a ridiculous idea. Free iPhones. That will never happen. Yet, in essence, that– at least, dramatic price cuts– is what some of the more prominent anti-Apple critics are proposing because iPhone sales are in the dumper.
You know what they say about fake news, fake outrage, and fake opinions, right? If you repeat them often enough then people will think they’re true.
It’s all about supply and demand. Lower the price, the demand goes up and supply goes down.
At $100, Apple definitely would have demand that would ease the so-called supply problem. But that would cause a revenue shortfall, a gross margin reduction, oh, and a lack of profits.
What’s the sweet spot?