Can Galaxy S4 Beat the IPhone or just another "Failed" Samsung Attempt ?

[famousringo]

ethomaz said:

MoHasanie said:

How are you so sure the cheaper Iphone will sell so much? I mean, if people these days want a lower costing Apple phone couldn't they just buy an Iphone 4 or 4S? I think you can get those for $0 in the states and then you pay monthly. 

The 4S costs over $400 here... the 5 over $1000.

I found a contract deal for 4S last weekend... the plan is expensive and you buy the 4S per $150.... nobody like these contract deals here in Brazil... so a cheaper iPhone will destroy.

As I understand it, the big issue with the Brazilian market is enormous tariffs on imported consumer electronics.  It's reflected in the prices you quote. A $400 4S is actually cheaper than it sells in most markets (It costs $550 in US and Canada), so Apple must be assembling those in Brazil. The 5 is obviously so much more expensive because none of that SKU are being manufactured in Brazil (yet?).

Don't take the wishful analyst's word that Apple is making a cheaper iPhone. Apple has had great success so far in achieving strong phone growth while maintaining high average revenue per unit. While a cheaper iPhone could create more growth opportunities, especially in developing markets, it also threatens those high-margin sales and the high-value customers that have made iOS the dominant mobile platform. Apple may be perfectly happy, and more profitbale in the long-term, taking the most valuable 25% of the phone market and leaving the rest to low-margin white box manufacturers.