Originally Posted by IvanIV:
“Not sure if that alone would help. Apple was on a smartphone market alone for a long time. They more or less created it and got a dominant position, because competition did not have anything competitive to offer. Until later versions of Android came and phones like Galaxy S2,3,4. Now there's a wide range of competitive smartphones on the market, a balance is being restored to its natural state and Apple is losing the dominance and the money. Their mobile products are niche and high-end, just like their computers are. Steve Jobs had identified the problem correctly. Cheaper, good quality alternatives are a threat for Apple's obscene profits. The same is happening on a tablet market. Apple created the market and profitted enormously because of that. Now it's ending, too. So unless Apple changes a strategy and starts producing wider price range, they will be pushed into the same position as they now have on computer market.”
I think you and Daclick are saying very similar things.
Apple need to be newer, better, faster to justify their prices. If they don't innovate, other people start offering similar products and Apple either have to reduce prices or lose market share.
So they can innovate, or they can drop prices (maybe with cheaper versions of their products). Or they can spend a fortune on marketing and hope no one notices that their products are not very good value, while at the same time spend a fortune on legal action to try and slow down the competition.