More Proof Apple Inc. (AAPL) Needs a Low-End Phone

As per a recent report for calendar year 2012, there are now 4.3 billion individual, mobile phone users on the planet — 4.3 billion. Of those users, only 1.3 billion own smartphones. That, it seems, is fodder for Apple fans who despise the idea of “sinking” to the low-end phone market. With all those individual users, a total of 3 billion of them, not using smartphones, there are literally billions just waiting to get an iPhone, right? Unfortunately, no.

Mobile phone users in emerging markets, many of whom do not enjoy the benefit of subsidies, simply can’t afford $600 or more for a smartphone. Are some of the 3 billion mobile phone users a target for Apple’s iPhones? Of course, but it’s more likely they’ll be served by the likes of Nokia and its low-end phones or global sales leader Samsung, with its laundry list of phone alternatives for emerging markets.

Apple needs to develop a phone in the $200 to $300 range, simple as that. Quality is always an issue, and never more so than with Apple and its products. But the numbers make it pretty clear: Globally, users are willing to give up features for cost, and billions are doing it right now. As it stands, Apple doesn’t have a solution for the majority of those mobile phone users — and that needs to change.

The article More Proof Apple Needs a Low-End Phone originally appeared on Fool.com and is written by Tim Brugger.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple and Google.

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