Viewpoint: A $1000 reduction in a year, iPhone plays cheap like this

1. Cook: "The sales of iPhone 4 are still good."

2. Lower the threshold for users to access Apple's ecosystem by reducing the prices of older products, rather than launching a stripped-down cheap product.

3. For the iPhone, price is more attractive than new features.

4. Bold prediction: In a year, the price of iPhone 4s will drop below 3000 yuan, and the price of iPhone 5c will fall slightly above 3000 yuan.

Many people might not understand why the iPhone 5, which was launched just a year ago with a bright future, was suddenly discontinued, while the iPhone 4s, which has been on the market for two years, is still "alive," and even in some official Apple Stores, the iPhone 4, which is over three years old, is still being sold. What kind of product strategy is this?

Yesterday morning, with the release of Apple's latest quarterly financial report, Tim Cook explained this "strange" layout: "The sales volume of the iPhone 4 is still very good. As we begin to test lower prices in different regions, we see significant price elasticity. Apple now hopes and believes that this situation will continue for the iPhone 4s."

He also said that the discontinuation of the iPhone 5 is because it can be fully replaced by the newly launched iPhone 5c, which comes in multiple colors. This is the mission of the iPhone 5c, not the "cheap version" as previously speculated by the market. As for the task of offering an affordable entry-level phone, Apple has handed it over to the iPhone 4 and iPhone 4s.

From this, it seems that Apple's product philosophy is to lower the threshold for users to use Apple's ecosystem by reducing the prices of older products, rather than launching a stripped-down cheap product. This aligns with Cook's previous statement of "not making junk products." It seems many people have misunderstood Apple.

At the same time, Apple indeed recognizes the importance of emerging markets like China (China's revenue grew 6% quarter-over-quarter), especially the crucial role of price. Therefore, according to Cook, in the short term, the iPhone 4s will still play an important role in popularizing the iOS system, and the iPhone 4 will remain on the market for a certain period of time. This forms a price range from 2588-5288 yuan (for the 16GB model), catering to more people's needs.

Therefore, we have reason to believe that unless developing countries like China no longer need affordable entry-level phones, the iPhone 4s will still remain active in the market. However, its mission will end with the release of the next generation of iPhones. We can boldly predict that in a year, the price of the iPhone 4s will drop to within 3000 yuan, and the iPhone 5c will take over its legacy, staying in the price range slightly above 3000 yuan.

Apple made this decision based on a series of numbers. According to the recently disclosed fourth-quarter financial report, iPhone sales reached 33.8 million units, setting a new record high. Among these, the sales performance of the iPhone 5c/5s for 8 days was included, and Apple previously announced that the first-week sales of the two new products reached 9 million units, accounting for 26.63% of the total iPhone sales this quarter. From this, it can be calculated that in the previous fiscal quarter, Apple still sold 24.8 million units of the iPhone 5/4s. Keep in mind, this was before the general public knew about the upcoming new product releases, meaning that price may be more tempting than new features. As of February this year, statistics showed that the iPhone 4s was still the best-selling smartphone globally, demonstrating its resilience.

In fact, for rational consumers, the iPhone 4s still has its charm. If what you value is enjoying hundreds of thousands of iOS apps rather than flaunting a "gold edition," then the iPhone 4s is still the best choice. Even though the screen is slightly smaller, and the processor and RAM specifications are lower, the iOS system and apps run smoothly without any issues.

From another perspective, taking the entry-level models of the two phones on the Chinese website, there is a full 2000 yuan price difference between the iPhone 4s and the iPhone 5s. For consumers who want to embrace iOS software but don't have a big budget, this price difference is enough to make a rational choice.