Apple Could Own Market With Lower Prices: Galloway

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Oct. 23 (Bloomberg) -- Bloomberg Contributing Editor Scott Galloway, Bloomberg Businessweek senior tech correspondent Sam Grobart and Brian Belski, chief investment strategist at BMO Capital Markets, discuss Apple’s pricing plan and continued targeting of the high-end market. They speak on Bloomberg Television’s “Bloomberg Surveillance.”


It is the best brand in the world.

The one world -- the one word that will be used to describe what is happening is pricing.

They were at 70%. they could've come in at a more aggressive price, sucked the op -- the oxygen out of the room for everyone.

This is the debate.

I think you're pointing this out perfectly.

You have the issue of market share and profit.

You mentioned mercedes.

Mercedes came out with a $29,000 car.

Apple had an opportunity to own this market.

If they had reduced their margins, they could have made it impossible for anyone to come in your.

They created a ton of margin that has created a ton of competitors.

They're willing to give up some room on profitability -- on market share because it wants to maintain its profitability whereas amazon has indicated it is more than willing to give up profitability to a mass market share.

Brian belski is with us.

Which is more valuable?

The apple theme is the theme of the u.s. consumer.

It can -- it continues to be bifurcated.

If you are a u.s. consumer, if we want to buy something, we buy it.

If you look at personal consumption, it is the middle part that is in trouble.

The low-end is getting bigger and the high-end is getting bigger.

Apple is going for the high-end.

Speaking of mercedes, where they are going to get their volume growth is from the high-end.

That is where they make their money.

Apple is more positions toward the high-end consumer.

That is going to continue.

Tim cook said users on apple's ecosystems -- they spend four times more time on their devices.

This is what you say when you are you losing market share.

Itunes has a lot of the built-in audience.

Here's the scenario that frightens apple.

If users and app developers feel like there are too many people on the android side of things, they're going to develop apps for that group first or exclusively.

If that starts, that begins a spiral that is difficult for apple to get out of.

We have been to this movie before.

High-end, premium price, shrinking margin share, it does not end well for apple.

Only one company has been able to get away with the bezos strategy and that is amazon.

Apple will do double the profits that amazon has done in the last 10 years.

You're talking about amazon is something that no one else has been able to replicate that i have seen.

Scott galloway, much more with you.

Brian belski.

We're going to be talking about warren buffett.

He was talking about corporate leadership.

He also waded into ceo concession plans.

He talked about jamie dimon and microsoft.

All of that coming up on "bloomberg surveillance."

This text has been automatically generated. It may not be 100% accurate.


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