Apple Inc. (NASDAQ:AAPL) is fearless as far as confidence in its new line of iPhones is concerned. Despite Samsung, which is the tech giant’s greatest rival, dropping its prices in Russia, Apple went on to raise the price tag of its smart phones. Bloomberg’s Francine Lacqua reported on this new development.
“[…] Apple Inc. (NASDAQ:AAPL) is raising the price of its iPhone by 25%in Russia. Until now, the massive drop in Rubel had attracted tourists from other countries to buy the iPhone 6 in Moscow. Apple’s move comes a day after Samsung’s move to cut the cost of its competing smart phone. iPhone now costs 60% more than the Galaxy S5 in Russia […],” informed Lacqua.
Is Apple Inc. (NASDAQ:AAPL) getting ahead of itself? Shouldn’t it have been better to let the price levels at least stay at the same level, considering Samsung dropped the price of Galaxy S5. Could the move really hamper Apple’s sales in the country?
What is clear from this move is that Apple Inc. (NASDAQ:AAPL)’s CEO, Tim Cook is unwilling to engage in a price war. Apple Inc. (NASDAQ:AAPL) has pretty good margins on its devices, and if the company wanted to, I believe, they could have responded with a price dip as well. However, by taking a whole different direction Cook has shown who is the king of the smart phone market right now. He will get whatever the price he sets. In a way, some would even liken this to an analogy of a monopoly.
Many people feel that Samsung’s device might actually be better than that of Apple Inc. (NASDAQ:AAPL), but the shopping frenzy involving the larger sized iPhones has seriously dented the Galaxy S5’s sales, and now Samsung is trying anything from lowering the price of its phones to thinking about diving into the market for the low priced phones.
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