part 6 : globe's iphone 3G pricing a good time to launch or just a "good time"?

i both agree and disagree with the analysis on the timing of globe's launch of the iphone. i agree that consumers, even high income ones are now more value conscious than before. we also know that in times of economic worries, the tendency specially among high income consumers is to at least delay purchase of high ticket items.

i agree with the analysis that within that framework, globe's iphone launch is bad timing as of the moment BUT ONLY IF globe launches the iphone at the price they have set it. it is a highly over-priced product specially that philippine consumers, specially the high income ones are aware that the iphone is being sold in the US only at $199 or equivalent P9,032 versus their declared price of P15,100 for plan P1,599 and for pre-paid buyers at P37,599.

in fact this prevailing attitude of looking at value before making high ticket purchases may be the best time to launch the iphone IF glone launches the iphone at the same US price of $199.

at $199 or P9,032.00, all consumers will view the iphone as giving the BEST VALUE given the low price together with superior technology and features, bar non and superior brand image, bar non. given the iphone brand image and verifiable superior features, many will most likely see the iphone as dirt cheap.

and that goes to the point i have raised earlier where we are saying the iphone may be used by globe as their weapon of choice to gain new users and most specially a substantial number of switchers from smart and eventually become market leader in as short as two year's time.

unfortunately, based on the pricing that globe has announced, globe seem to have decided they do not want to use the iphone as their weapon to gain market leadership. smart telecoms must be relieved of globe's decision on its pricing on the iphone.

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http://newsinfo.inquirer.net/breakingnews/infotech/view/20080818-155357/Timing-not-so-good-for-iPhone-3G-in-RP-says-analyst




Timing not so good for iPhone 3G in RP, says analyst
By Lawrence CasirayaINQUIRER.net

MANILA, Philippines--Despite the hype surrounding Globe's forthcoming launch of the iPhone 3G, one analyst believes Apple's latest device is coming to the Philippines at a very bad time.


"The iPhone's roll-out in the Philippine market came at a very bad time," said Benedict Ferrer, analyst for XMG Asia Pacific. Globe is scheduled to launch the iPhone 3G on August 22. The operator initially announced earlier this month that it would sell the device for prepaid accounts at P41,899 and P48,899, for the 8-gigabyte and 16-gigabyte models, respectively.


Last Friday, Globe announced price rollbacks and said it would sell iPhone 3G prepaid kits starting at P37,599 (8Gb) and P43,799 (16 GB)." Despite of the price cuts made by Globe, technology consumers are now very cautious on spending for high-end luxury items due to spiraling food and transportation costs," Ferrer said in comments e-mailed to INQUIRER.net.


He believes Globe's revenue growth from iPhone subscriptions will still be limited due to "application cost, value proposition and application usage acceptability among consumers." In terms of preference, he said consumers in general will still prefer prepaid plans primarily because these do not have a "lock-in" contract with Globe.

The iPhone 3G is also available via postpaid subscriptions ranging from P1,599 to P4,999 in monthly fees. "iPhone's brand recognition, market positioning and loyal followers will provide the strategic advantage in capturing high-end techno savvy consumers versus other smart phone brands," Ferrer said.


Globe's prepaid plans come with P1000 in load credits spread over five months, or P200 per month. Also, the first 1,000 phonekit purchases will get an additional P1,000 discount off the purchase price, Globe said in last Friday's announcement.

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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe

read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone