Apple has an interesting tightrope to walk when it comes to entry-level products. While you and I may choose Apple products because we like the UI, the ecosystem and the designs, a large chunk of the company’s customer base automatically buys Apple simply because it is seen as the most premium brand. They may not know the specific benefits of Apple products, but they are – to quote an old ad slogan for a lager – reassuringly expensive. If they cost more, they must be better.

Indeed, in many markets, being seen with an iPhone, iPad or Mac bestows social status for that very reason, making them aspirational products.

Apple cannot afford to dent that premium image by offering low-end products, but at the same time it needs to bring in new customers to maintain growth. So far, its approach to doing this has seemed to me to be smart. But offering a 32GB iPhone 6 as an entry level iPhone in 2017? That I’m not so sure about …

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Filed under: Apple