Apple is known for its great devices and also its extremely high prices. That hold true even here in Malaysia with the company’s flagship being sold directly from Apple on its online store for RM 2,399 for the 16GB model and RM 3,149 for the 64GB version. As such, the company has been catering for an upscale market and has been eschewing the lower end entry market which is predominantly the market in emerging markets such as Malaysia, Indonesia and the majority of the Southeast Asian Region. The electronics company tried addressing this problem with the release of the 8GB iPhone 5c, which didn’t really perform as expected in emerging markets largely due to the price of the device which ranges from RM1,999 for the 8GB version to RM2,399 for the 32GB version.
KGI Securities analyst Ming Chi Kuo predicted that Apple is looking to launch an 8GB iPhone 5s to increase market share in emerging markets. However, noted Apple journalist, Jim Dalrymple, was quick to dismiss the prediction with a blunt “Nope”.
As previously mentioned, the main problem with gaining market share in emerging markets is price point which at this point in time, Apple is missing with its exorbitant prices of even its entry level device the iPhone 5c. When compared with the more affordable options in competing ecosystems such as Windows Phone and Android, which start at RM450, Apple has a lot to do to get a larger market share in these markets.