This may also be another sign that Apple needs to come up with a cheaper iPhone, unless it can demonstrate major innovations to the devices. People want to own Apple products, but they are not willing to pay for them if there isn't a perceived reason to do so.
Think about it. You're a rank-and-file smartphone customer. You walk into a Verizon store. You compare iPhone 5 side-by-side with the 4S and 4. Chances are you would be in the Apple Store or at Apple.com making the purchase if you absolutely needed to have the latest model. Obviously, plenty of rational people have decided that, to save a few bucks, they would take an older model.
As somebody who doesn't think every new iPhone needs to be revolutionary, there still has to be something to get excited about. For as much as I love my iPhone 5, there's not even a real deal of evolution between it and its predecessors.So, yeah, is an "officially" cheap iPhone the answer here? I hope the heck not. If it is, my talk about blowing out Tim Cook might become widespread among Apple fans and the media sooner than even I expect.
Consider the implications here . . . consider what smart people like Chris are putting forward regarding what Apple might do next to dig itself out of this ditch. If that's really the position Apple now operates from, they're doomed to perpetual mediocrity, relative to their otherworldly existence of the past five-ish years. A cheap iPhone. As an Apple fan, I'm terrified. But I hold out hope that my more bullish thoughts -- truly re-evolution-ary advances in Siri and Passbook across products and a premium-priced, high-quality piece of hardware for the living room -- come to, rendering all of this legitimate concern little more than noise and hysteria. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV