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As the technology world awaits today’s much hyped launch of the Apple iPhone there are already concerns that the product may be priced out of the range of the mass market - impacting on the overall profitability of the venture. So what can Apple do now?

Apple have a reputation for upgrading their products every 9 to 12 months, and it seems as though the iPhone will be no different. However, there is much speculation that they will launch a slimmed down version of the main iPhone, with fewer services, although retailing at a greatly reduced price. The idea is that the lower priced iPhone will tempt in many who were curious of the new technology, but unwilling to pay the full price. Apple believe that the lower spec phone will bring many customers on to the full range iPhone, increasing sales dramatically in the medium term.

The research and advertising spend on the iPhone will run into the hundreds of millions of dollars and Apple are determined to maximise their return as soon as possible. While initially Apple may well have over priced the iPhone, they have a track record which shows that they can still make it pay in the long run.

The hype has reached fever pitch of late, and it will be interesting to see how the market reacts to the launch!

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