iPhone share slump spurs calls for low-price model

Q2 sales result in lowest share in three years

By , Computerworld |  

If Apple makes that decision -- according to the rumor mill, it already has, and plans to ship an entry-level iPhone this fall -- that means the company has come to terms with lower returns than during the heady days when the iPhone faced little competition. Revenue may continue to pile up, but profit margins have slumped. That trend is likely to continue.

A lower-priced iPhone, and lower margins, will tell the tale about whether Apple adapts or continues doing business as usual.

"As any market matures, it becomes more about volume," said Restivo, who believes that Apple clearly understands that -- no matter how little stock its CEO puts in market share. "I think Apple learned that lesson in the personal computer market."

This article, iPhone share slump spurs calls for low-price model, was originally published at Computerworld.com.

Gregg Keizer covers Microsoft, security issues, Apple, Web browsers and general technology breaking news for Computerworld. Follow Gregg on Twitter at @gkeizer, on Google+ or subscribe to Gregg's RSS feed. His email address is gkeizer@computerworld.com.

See more by Gregg Keizer on Computerworld.com.

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Originally published on Computerworld |  Click here to read the original story.
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