Apple might be having trouble with its new marketing segmentation. The new entry level for the new iPhone generation is at $699. But, consumers do not seem convinced of this fact, and keep buying the iPhone 7 instead.

Additionally, consumers also seem to be waiting for the iPhone X. This leaves the flank open to competition. Huawei will launch an iPhone X competitor at a lower price, i.e., going head-on with the iPhone 8 line.

This is mixing things up in terms of pricing and marketing strategy. Apple may very well need to redefine its pricing strategy and make some adaptations. This has the potential to be a destabilizing factor in the short-term (end of 2017), but I think Apple will come on top during 2018. Apple’s loss might be your gain.

I explore this issue in more depth here.

Further reading:

http://host.madison.com/business/investment/markets-and-stocks/how-will-the-iphone-x-affect-apple-s-financials/article_fd0b13f5-47d4-524d-9cba-24aa36e4177a.html

Photo credit: John Karakatsanis