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Key theme is affordability? It’s beyond property yeah.

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You know the government has been talking about affordable properties for a very long time. It’s continuing to push for more of these cheaper but with minimum quality homes so that more Malaysians could own a roof over their heads. The private developers are also now doing the same. They would have loved to just build 200 units of RM1,000,000 homes and finish selling it versus now having to build 800 units of RM250,000 each and having 800 headaches versus just 200.

Everyone knows that iPhones are in a class of its own versus typical Android smartphones such as OPPO. It has that special something that people are willing to pay a high premium for. In fact, the premium they pay meant that Apple manages to get most of all the profits in the whole smartphone industry despite selling much lower number of handsets versus all other major brands. Look at the chart from CounterPoint Research.

Source: https://www.counterpointresearch.com/apple-continues-lead-global-handset-industry-profit-share/

This high margin and lower number of handsets may not be what Apple intends to do in the near future. This is the most recent news. Apple is now working on a low-cost model. This is what Bloomberg is saying: “Bloomberg reported that a cheaper offering may help Apple better compete in the most price-competitive and fast-growing emerging phone markets, particularly in countries like India. Most experts suggest the base model of the low-cost iPhones needs to be priced at least between RM1,700 to RM1,900. It is also expected that Apple will be revealing official details about the low-cost iPhones around the end of this month.” Please read the full and comprehensive article in themalaysianreserve.com here.

In case one wonders why would they want to come up with a low-cost model when they continue to sell pretty okay and continue to earn high profit margins, well, mass market will always be the key to continuous profitability. There’s a limit to how much higher that next Apple phone could sell because salaries are not rising that fast and people could not keep buying the next new phone on instalment when they have not even finished their 24-month instalment!

By the way, this is the same for property market. To understand if the property price could actually rise higher, look at the median salary instead for clues. Happy waiting for that low-cost iPhone. I will not be queuing for it together with you.

Header image from https://www.apple.com/my/shop/buy-iphone/iphone-11

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