» Making it work

John Paczkowski for AllThingsD:

In India, Apple sells iPhones on the open market, not through carriers that subsidize them and in so doing lower their selling price. And while India is among the fastest-growing wireless markets in the world, it’s also highly price-sensitive. That’s been problematic for Apple, which has traditionally been unwilling to cut prices to drive volume.

But recently Apple has been working with Indian distributors to offer installment-based payment plans for the iPhone.

As I said on the panel I was on at Macworld/iWorld Expo: the Ultimate iFan Event and Monster Truck Rally, if Apple can find a way to sell a cheaper iPhone and still make money, it will. If it can’t, it won’t. (I’m deep.)

It may cut into its margins a bit, but it’s not going to gut them to chase market share. They were able to shed features in the iPod line to make cheaper devices and maintain a high market share, but you can’t really do that as much with smartphones. Still, they may find a way to use their experience, leverage with suppliers and wads of cash to make a device that’s cheaper to produce and doesn’t suck.