Apple Inc. (AAPL): What About China?

Will the strategy work?
Though Apple Inc. (NASDAQ:AAPL) didn’t improve its value proposition to the mid-tier smartphone market in China, the company did manage to beef up its offering in the high-end segment.

The iPhone 5s boasts some impressive improvements. The 5C maintains the 5’s CPU power while adding some flair with five bright colors and improving battery life. And with the elimination of the iPhone 5, there is a clear hierarchy and a strategic pricing strategy among the three top iPhone models: the iPhone 5S, 5C, and 4S.

If Apple Inc. (NASDAQ:AAPL) can successfully market these models and make up its lack of volume with excellent profit margins, the company could surprise investors. But at this point, Apple will have to prove that this pricing strategy will work because it’s not what anyone expected.

What do you think? Is Apple Inc. (NASDAQ:AAPL)’s strategy to focus on profit margins the right decision?

The article Could the Not-So-Cheap iPhone 5C Disappoint? originally appeared on Fool.com.

Fool contributor Daniel Sparks owns shares of Apple. The Motley Fool recommends and owns shares of Apple.

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