Reuters - Video

Edition: U.S. | U.K. | IN | CN | JP

Business

Techquity: Expect cheaper iPhone but not that cheap

Friday, June 14, 2013 - 03:10

June 14 - Reuters Breakingviews Columnist Rob Cyran gives his take on Apple's iPhone strategy and more.

▲ Hide Transcript

View Transcript

Technicians right but Apple's developing new lower priced handset. Sources told Reuters this week that phone as low as 99 dollars to being considered. While apple likely come out something less expensive. To -- something about press. The reason Apple's considering this is fairly simple Smartphone growth is starting to slow. IC thinks 33% more Smartphones will be shipped to 2013. Here last year's 44%. The real problems that most consumers in developed countries or have Smartphones. So apple want to sell a lot more iphones. Has the chase lower income consumers in places like India China and Russia. Apple's history suggests it won't go too far down market. Sure the company reduces prices over time it's apple two computer so for whopping 5000 dollars an inflation adjusted terms. There are four times as much as a Mac costs today. But the company tends to focus more and adding features and cutting prices. Apple's computers are still price -- the premium to rivals. And the company knows those products are luxuries people pay up to its gadgets because they are well designed and worked well. Making and I approach into parts for just damaged brand. Shares down 1% to being your -- thirty as the continue to trade near their fifty day moving average. A Smartphone growth is slowing patent lawsuits he -- going the opposite direction. Apple and Samsung are battling each other courtrooms around all over the world. And tech giants of all stripes are also busy doing -- legal claims made up like companies buying up patents just for the sake of suing. These firms are sometimes called patent trolls they become a financial headache for technology companies. Firms like RPX has sprung up to help. If -- patents and charges companies subscriptions in their effort to fight trolls. And now White House and congress are lending business at hand. President Obama's forcing the patent office to be more strict in granting patents and forcing shell companies to disclose who actually owns the intellectual property. Some in congress -- making it easier challenge broad patents and also allow judges to -- court fees for frivolous cases. This all makes life easier for companies like RPX because my parents cheaper and find more clients. Sure -- 52 week high today they're down from where -- began trading after going public about two years ago. One headache for the likes of apple who was not -- a -- for the moment tax issues. They've come under intense scrutiny in the US and EU over their small tax payments. Topic tax avoidance is expected be major discussion point at the meeting of G-8 group of leading economies next week NORTHERN IRELAND. But he draft statement issued after the meeting in -- by Reuters -- a watered down approach. Some government have lobbied for rule which would force companies to publish their profits revenues and tax payments on a country by country basis. The draft statement only says that tax authority should look into whether making releasing this information. Volunteer party. That's tech quiz Friday from everything -- on Twitter arch terrorist equity. I'm rob -- and this is right.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Techquity: Expect cheaper iPhone but not that cheap

Friday, June 14, 2013 - 03:10