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MacRumors
Jun 27, 2011, 09:14 AM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2011/06/27/analyst-claims-apple-may-release-349-iphone-for-prepaid-markets-this-year/)


Fortune reports (http://tech.fortune.cnn.com/2011/06/27/report-apple-is-building-two-iphones-for-september-release/) that Deutsche Bank analyst Chris Whitmore today released a new research note claiming that Apple may be preparing to release two new iPhone models later this year, with the usual iPhone revamp being joined by the debut of a cheaper model coming in at an unlocked, unsubsidized price of $349.In a note issued early Monday, Deutsche Bank's Chris Whitmore is telling clients to expect both -- an iPhone 5 and an iPhone 4S.

"With Nokia and RIMM struggling," he writes, "the time is right for Apple to aggressively penetrate the mid range smart-phone market (i.e. $300-500 category) to dramatically expand its [total addressable market] and market share."

As Whitmore sees it, an iPhone 4S that is unlocked, priced around $349, and comes with a pre-paid voice plan would "drive significantly greater penetration" into an addressable market that has grown to include 1.5 billion potential customers in 98 countries, two thirds of whom prefer pre-paid plans.Whitmore notes that while the market for prepaid smartphones is very small in the U.S., many other markets around the world have much higher levels of prepaid activity, and a cheaper iPhone would significantly lower the barrier to entry for those customers.

http://images.macrumors.com/article-new/2011/06/deutsche_bank_pre_postpaid.jpg


A cheaper (and in many cases smaller) "iPhone nano" has been the subject of many (http://www.macrumors.com/2011/02/10/apple-planning-reportedly-smaller-iphone-priced-at-200-without-contract/) rumors (http://www.macrumors.com/2011/02/13/apple-working-on-cheaper-smaller-iphone-and-mobileme-overhaul/) over the years, although it is unclear just how Apple will be able pare down the current iPhone's feature set to bring the unsubsidized pricing down to the $349 level suggested by Whitmore, or even lower price points as suggested in previous reports. Unsubsidized pricing for the iPhone 4 begins at $649, although the 8 GB iPhone 3GS still sold by Apple comes in at a much lower $449. With Apple's iPod touch line starting at $229, there may in fact be some flexibility to put together a somewhat stripped down iPhone coming in at a price point in the $350 range.

Also unclear is the basis of Whitmore's claim, whether it be concrete information obtained from Apple's supply chain or mere speculation on what Apple "should" do.

A separate note issued yesterday by Morgan Stanley's Katy Huberty claims that Apple is set to begin ramping production of a new iPhone in mid to late August, suggesting that a launch might not occur until late September. Rumors have increasingly pointed to a September launch for the next iPhone, although many have been hoping that Apple will introduce it at an early September event in line with the company's usual iPod-focused event.

Article Link: Analyst Claims Apple May Release $349 iPhone for Prepaid Markets This Year (http://www.macrumors.com/2011/06/27/analyst-claims-apple-may-release-349-iphone-for-prepaid-markets-this-year/)



darkslayer13
Jun 27, 2011, 09:17 AM
I just hope that the new iPhone that is ramping up is an iPhone 5 rather than just an iPhone "4GS". That would be disappointing, and not worth the wait.

AAPLaday
Jun 27, 2011, 09:18 AM
Wow the USA and Canadas pre-pay market is tiny!

grmatt
Jun 27, 2011, 09:20 AM
iPhone 4G and iPhone 4S?

Small White Car
Jun 27, 2011, 09:20 AM
I know this stuff gets the 'iPhone Nano' crowd all excited, but it ain't happening.

This will be, let's say, an iPhone 4 with 8 GB of memory, no gyroscope, and no front camera. (Or something like that.)

It'll probably have a differnt name so they can sell it, an actual iPhone 4, and an iPhone 5 all at the same time. So, 3 models instead of the current 2.

But not a Nano.

ImNoSuperMan
Jun 27, 2011, 09:21 AM
Apple can easily sell millions of these in India and other similar markets. iPhone barely sells here thanks to the slow launch of iPhone (iPhone 4 launched last month here :mad:) combined with ridiculously high prices (7-800 USD) for a year old phone about to be succeeded with a brand new version in US in a few weeks. $350 is a very good price for prepaid smartphones here. I really hope this is true.

Esquire1
Jun 27, 2011, 09:21 AM
Hopefully, regular iPhone to 4" screen and the "nano" model to stay at 3.5".

AAPLaday
Jun 27, 2011, 09:22 AM
I know this stuff gets the 'iPhone Nano' crowd all excited, but it ain't happening.

This will be, let's say, an iPhone 4 with 8 GB of memory, no gyroscope, and no front camera. (Or something like that.)

It'll probably have a differnt name so they can sell it, an actual iPhone 4, and an iPhone 5 all at the same time. So, 3 models instead of the current 2.

But not a Nano.

A Touch with a radio :D

Sjhonny
Jun 27, 2011, 09:22 AM
A cheap iPhone would cannibalize the sales of the expansive iPhone, while maintaining a lower profit margin. So it won't happen. (I think :rolleyes:)

FriarNurgle
Jun 27, 2011, 09:25 AM
What a dumb guess.

Basibo1
Jun 27, 2011, 09:27 AM
The cheap iPhone would become very expensive when using 3g.

Crigger540
Jun 27, 2011, 09:32 AM
A cheap iPhone would cannibalize the sales of the expansive iPhone, while maintaining a lower profit margin. So it won't happen. (I think :rolleyes:)No it wouldn't, the customers that have been buying the premium iphone will continue to buy the latest & nicest iphone, but the people who have been buying the $229 touch will now buy the $350 iphone nano. (which is what i would be inclined to).

42streetsdown
Jun 27, 2011, 09:34 AM
yeah apple significantly drive that greater penetration

TheAustrianGuy
Jun 27, 2011, 09:35 AM
...when they have a then-quasi-outdated iPhone4 they can sell as low-end model?

Shipwrecked22
Jun 27, 2011, 09:36 AM
Maybe Apple plans on turning the iPod Touch into this cheaper iPhone. Each gen always carries specks lower then the iPhone already, so wouldn't it make sense to just add the cell chips and antenna and continue selling it for practically the same price? If all the rumors are right, the iPod Touch and iPhone are being released at the same time this year, which would make sense if that were true.

makingdots
Jun 27, 2011, 09:37 AM
Just smack a 3G + GSM sim card on an iPod Touch.. Done!

That will worth around $400 I guess.

The problem is that prepaid folks doesn't have purchasing power to benefit the App store, maybe, Apple need to coordinate to carriers to enable direct purchasing of apps through a carrier's prepaid card?

dethmaShine
Jun 27, 2011, 09:37 AM
- Essential for markets where pre-paid/post-paid plans are very popular. Among best examples would be markets like: India, China, Malaysia, etc.

I belong to India and I'm aware that almost every person who buys a phone is on a post-paid [per monthly] or a pre-paid plan. But both these plans do not include the cost of the phone. You've got to buy the phone yourself. $350 sounds like a great price for such a market.

- Lets be honest: not everyone affords an iPhone. I used to have an iPhone but at present I use Mozart7. I got a couple of Trophy7s for mom and my aunt.
Why? - work like an iPhone -- touch screen ... but cheaper than the iPhone. An iPhone 4 would have cost me close to 500. I got the other two for a total less than 500. :rolleyes:

- Not everybody carries an expensive phone. If I were to gift a phone to my little brother or probably my girlfriend, I'd buy a cheaper - non-iPhone model. If a cheaper option was there, I wouldn't have been bothered at all.

iPhone has to become cheap overtime if Apple needs to take care of some more people. They are going good with whatever they have but if they need to aggressively compete, they need a cheaper iPhone.

zweigand
Jun 27, 2011, 09:39 AM
I've been begging for an iPod Touch with 3G ever since the iPod Touch came out. Once they unveiled the iPad with a data plan I really got my hopes up. PLEASE let this be true.

Right now I carry a $20 pre-paid dumb-phone + an iPod Touch.

M-O
Jun 27, 2011, 09:40 AM
No it wouldn't, the customers that have been buying the premium iphone will continue to buy the latest & nicest iphone, but the people who have been buying the $229 touch will now buy the $350 iphone nano. (which is what i would be inclined to).

same here. if this were nothing more than an iPod touch with a cell radio, earpiece and relocated mic, i'd buy it.

iPhone A: 16GB, A5, 4G radio, 8MP camera, $199 on contract
iPhone B: 8GB, A4, 3G radio, 3MP camera, $299 contract free

something like that. heck to save money, just lower the price of the iPhone 4. which is more likely.

Cynicalone
Jun 27, 2011, 09:40 AM
In the US I wonder how you convince Verizon and AT&T to support this.

The cost of the data plans seems to be the deal breaker for most people. AT&T is expensive but Verizon is going to be even more expensive if the rumors are true.

If Apple could find a way to hammer down the data plan cost then they could open a whole new market in the US.

wordoflife
Jun 27, 2011, 09:41 AM
Virgin Mobile! Haha
Hey, for $25 a month, you can't really go wrong especially have an iPhone too. :p Too bad that's CDMA though

Schizoid
Jun 27, 2011, 09:41 AM
A friend of mine wants to get a job as an 'analyst' here's his resume:

I'm breathing and can walk

andiwm2003
Jun 27, 2011, 09:43 AM
hm, for the US:

what if they release a iPhone 5 unlocked for $649, a locked iPhone 5 with contract for $200 and an unlocked iPhone 4 for $349?

I would buy the iPhone 4 unlocked and run it on my current ATT contract. And so would many people and therefore the cheap unlocked iPhone would cut into Apples high end sales.

I don't think Apple allows this to happen.

FriarNurgle
Jun 27, 2011, 09:44 AM
- Essential for markets where pre-paid/post-paid plans are very popular. Among best examples would be markets like: India, China, Malaysia, etc...

You make a great point, and thanks for sharing the hands on experience for the Indian market. I just don't feel this is a direction Apple will take... but apple does seem to be bouncing around a bit and loosing people so who knows. I still say it's a long shot though.

iZac
Jun 27, 2011, 09:45 AM
...when they have a then-quasi-outdated iPhone4 they can sell as low-end model?

Obviously apple sell the 3GS in an 8gb format at the moment to cater for a lower end market. But they (and almost all customers) realise what a terrible deal they are and ignore it. Plus there is no other product that Apple have where they sell an old model as a "budget" product.

It makes Apple sense to release a "new" model with restrictions and market them as features (e.g. shuffle, nano 6g)

sjo
Jun 27, 2011, 09:45 AM
at an unlocked, unsubsidized price of $349.Whitmore notes that while the market for prepaid smartphones is very small in the U.S., many other markets around the world have much higher levels of prepaid activity, and a cheaper iPhone would significantly lower the barrier to entry for those customers.


$350 is way too high for those markets. Try $35.

wordoflife
Jun 27, 2011, 09:48 AM
Considering there's no hints of a next generation iPod Touch, maybe this is true. Or completely wrong. :D

rmhop81
Jun 27, 2011, 09:48 AM
In the US I wonder how you convince Verizon and AT&T to support this.

The cost of the data plans seems to be the deal breaker for most people. AT&T is expensive but Verizon is going to be even more expensive if the rumors are true.

If Apple could find a way to hammer down the data plan cost then they could open a whole new market in the US.

some people don't need data. that's what's great about prepaid and being able to do what you want. not being forced into paying data if you don't necessarily need it.

M-O
Jun 27, 2011, 09:49 AM
In the US I wonder how you convince Verizon and AT&T to support this.

The cost of the data plans seems to be the deal breaker for most people. AT&T is expensive but Verizon is going to be even more expensive if the rumors are true.

If Apple could find a way to hammer down the data plan cost then they could open a whole new market in the US.

competition. if we can buy an iPhone and take it anywhere, verizon and at&t will have to compete by lowering rates. this is the way it should be.
Apple seems to be the only one on board with this... which is why they are pushing for a software SIM...

rmhop81
Jun 27, 2011, 09:49 AM
hm, for the US:

what if they release a iPhone 5 unlocked for $649, a locked iPhone 5 with contract for $200 and an unlocked iPhone 4 for $349?

I would buy the iPhone 4 unlocked and run it on my current ATT contract. And so would many people and therefore the cheap unlocked iPhone would cut into Apples high end sales.

I don't think Apple allows this to happen.

the 3GS is still around. what's the difference between what you are suggesting? Almost everyone i know that is getting a new iphone isn't opting for the cheaper 3GS.

rmhop81
Jun 27, 2011, 09:52 AM
Just smack a 3G + GSM sim card on an iPod Touch.. Done!

That will worth around $400 I guess.

The problem is that prepaid folks doesn't have purchasing power to benefit the App store, maybe, Apple need to coordinate to carriers to enable direct purchasing of apps through a carrier's prepaid card?

what are you talking about?

Lagmonster
Jun 27, 2011, 09:55 AM
$350 is way too high for those markets. Try $35.

There is proof that the number is $150 or higher. Virgin Mobile sells an Android for $150 usable on a $25/month plan (unlimited data, text, 300 mins) with no contract. They sell like hotcakes.

So $150 is viable, but how much higher? A plan like Virgin would sell a zillion at $150, $200 even. Perhaps higher?

Kar98
Jun 27, 2011, 10:03 AM
The problem is that prepaid folks doesn't have purchasing power

Big bold assumption there. People on prepaid just don't see a reason to pay $80 a month, when $15/month prepaid plans fit their usage much better.

franswa za
Jun 27, 2011, 10:03 AM
if this pans out to be true...... it will be a great money maker for apple....

and why not keeping on producing the iphone 3GS as an alternative cheapie?

lozpop
Jun 27, 2011, 10:04 AM
350 unlocked iPhone + data plan (3/week) = Awesome.

Rodimus Prime
Jun 27, 2011, 10:04 AM
I will believe it when I see it. I lost count the number of times this rumor has come up

Kar98
Jun 27, 2011, 10:04 AM
competition. if we can buy an iPhone and take it anywhere, verizon and at&t will have to compete by lowering rates. this is the way it should be.
Apple seems to be the only one on board with this... which is why they are pushing for a software SIM...

I'm missing something here.

bushido
Jun 27, 2011, 10:04 AM
great more iPhone users ... i'm already sick of seeing every other person putting a iPhone out of his pocket as it is xD miss those good old "an iPhone is something special" days ^^

point of iPod Touch is ...?

absynth
Jun 27, 2011, 10:04 AM
A $350 Iphone 4s with maybe a slightly faster 1 GHz A4 processor, improved antenna, software SIM, 8 GB storage and maybe a larger 1500 mAh (more interior space thanks to less memory and softSIM) would be an instant buy for me!

actripxl
Jun 27, 2011, 10:05 AM
No it wouldn't, the customers that have been buying the premium iphone will continue to buy the latest & nicest iphone, but the people who have been buying the $229 touch will now buy the $350 iphone nano. (which is what i would be inclined to).


I would do this in a heart beat if I'd be able to get it on Virgin Mobile, heck Virgin Mobile sells the iPhone in Canada.

igazza
Jun 27, 2011, 10:05 AM
for that price you might get a 4GB iphone 3GS :p

soco
Jun 27, 2011, 10:07 AM
Wait... Charles Whitmore is making iPhones!?!

I may not have read the whole article properly. Either way, $349 seems like a fair price point. I don't know what some of you are bugging out about.

Ugg
Jun 27, 2011, 10:09 AM
I would do this in a heart beat if I'd be able to get it on Virgin Mobile, heck Virgin Mobile sells the iPhone in Canada.

Same here. I bought an LG Optimus V last month. It does what I need it to do but I'd rather have an iPhone. However, I don't see the point of spending $100 a month when Virgin only charges $25 a month.

There's an enormous market, even in the US for non-contract phones and plans. $300 would be an ideal price but $349 isn't a deal breaker.

AppleScruff1
Jun 27, 2011, 10:12 AM
This would be good. Too bad they couldn't come in at a lower price point. Imagine a prepaid iPhone for $99? Our dream would actually come true then, every human on earth would have an iPhone, all other companies would disappear, and we could bask in the euphoria of world consisting only of Apple. It makes my heart skip a beat to think that this day is coming.

7thMac
Jun 27, 2011, 10:15 AM
This appears to be just someone's idea, one that is not new or original. Does the analyst have any facts or is this just another assessment of the market?

Dagless
Jun 27, 2011, 10:27 AM
Very interesting graph! I had no idea prepaid phones were so rare in the US. I've only ever had prepaid since my mobile phone usage is quite minimal, and I don't think any of my friends and family have a contract phone unless their employer gave them one.

tigres
Jun 27, 2011, 10:28 AM
In the US I wonder how you convince Verizon and AT&T to support this.

The cost of the data plans seems to be the deal breaker for most people. AT&T is expensive but Verizon is going to be even more expensive if the rumors are true.

If Apple could find a way to hammer down the data plan cost then they could open a whole new market in the US.


Good luck with that. but I agree wholeheartedly.

this will only happen if:
AT&T merger with T-mo gets killed (only a dream of course)
Sprint gets iPhone,

then- people will have (4) choices of plans, which with basic economics leaves us all with cheap, cheaper, cheaper still, and cheapest.

Count me in.:D

rmhop81
Jun 27, 2011, 10:30 AM
Very interesting graph! I had no idea prepaid phones were so rare in the US. I've only ever had prepaid since my mobile phone usage is quite minimal, and I don't think any of my friends and family have a contract phone unless their employer gave them one.

everyone seems to think that prepaid means you have bad credit or you are poor and can't afford to get on a contract....that's not true at all.

it's common practice in US to just sign your life away for 2 years and get your phone subsidized so you don't have to pay for it upfront. But instead you pay loads of money and fees over the life of the contract.

Too many people are stuck on wanting to pay a cheap price for the phone upfront but willing to basically finance it over the life of the phone and do it monthly.

i love prepaid and will never go back to a contract again.

cactus33
Jun 27, 2011, 10:30 AM
I really doubt it, but I hope that I am wrong. It would be perfect if the iPhone mini was a 3-3.5" slimmy, and the next gen iPhone 5 was a 4".

Doubt it. But I hope.

rmhop81
Jun 27, 2011, 10:31 AM
Good luck with that. but I agree wholeheartedly.

this will only happen if:
AT&T merger with T-mo gets killed (only a dream of course)
Sprint gets iPhone,

then- people will have (4) choices of plans, which with basic economics leaves us all with cheap, cheaper, cheaper still, and cheapest.

Count me in.:D

iphone on virgin mobile would be insane!

Michael Scrip
Jun 27, 2011, 10:34 AM
Just smack a 3G + GSM sim card on an iPod Touch.. Done!

That will worth around $400 I guess.



That's pointless if they still need to get a separate cell phone.

I'm assuming people need a cell phone before they need an iPod Touch with data.

andiwm2003
Jun 27, 2011, 10:34 AM
the 3GS is still around. what's the difference between what you are suggesting? Almost everyone i know that is getting a new iphone isn't opting for the cheaper 3GS.

because so far the 3GS was not sold unlocked. if the 3GS was $349 unlocked I would have bought one a year ago (even considering that I own a locked 3GS already).

many people need an unlocked iPhone but can't get it right now unless they pay $700 or more. and I don't need all new features. i need a phone that I can use as a smartphone, not just as a iPod touch and that doesn't force me to carry two phones and chargers around as soon as I leave the country.

macnisse
Jun 27, 2011, 10:34 AM
Pre paid option + unlocked = great for traveling, vacation and for tossing a phone to the kids without financial worries :)

aughsum
Jun 27, 2011, 10:40 AM
I know this stuff gets the 'iPhone Nano' crowd all excited, but it ain't happening.

This will be, let's say, an iPhone 4 with 8 GB of memory, no gyroscope, and no front camera. (Or something like that.)

It'll probably have a differnt name so they can sell it, an actual iPhone 4, and an iPhone 5 all at the same time. So, 3 models instead of the current 2.

But not a Nano.

You're unfortunately right. I really want a nano.

igazza
Jun 27, 2011, 10:41 AM
Another way could make cheap iphone is to include no internal storage and add a micro SD card slot. not very apple though. :D

rmhop81
Jun 27, 2011, 10:44 AM
because so far the 3GS was not sold unlocked. if the 3GS was $349 unlocked I would have bought one a year ago (even considering that I own a locked 3GS already).

many people need an unlocked iPhone but can't get it right now unless they pay $700 or more. and I don't need all new features. i need a phone that I can use as a smartphone, not just as a iPod touch and that doesn't force me to carry two phones and chargers around as soon as I leave the country.

yeah but they just started selling the iphone 4 unlocked. My point was, the 3gs is still available via AT&T, that doesn't mean the iphone 4 is now not selling bc the 3gs is only $49 with contract. having a cheaper option isn't going to kill the better model. buy a 3gs from newegg and jailbreak it.

PeterQVenkman
Jun 27, 2011, 10:46 AM
I'd take that.

Dagless
Jun 27, 2011, 10:50 AM
everyone seems to think that prepaid means you have bad credit or you are poor and can't afford to get on a contract....that's not true at all.

Yeah, the folk I know with prepaid phones don't fall into that category. But a lot of them do a lot of business and travelling around Europe so I guess that's a reason to avoid contract.

Sim cards for each country, it's a winner.

bushido
Jun 27, 2011, 10:59 AM
Yeah, the folk I know with prepaid phones don't fall into that category. But a lot of them do a lot of business and travelling around Europe so I guess that's a reason to avoid contract.

Sim cards for each country, it's a winner.

T-Mobile contract here in Germany: 55 €
Prepaid with even better conditions: 20 €

WLS
Jun 27, 2011, 11:02 AM
No it wouldn't, the customers that have been buying the premium iphone will continue to buy the latest & nicest iphone, but the people who have been buying the $229 touch will now buy the $350 iphone nano. (which is what i would be inclined to).

Yea me too. The touch has always lagged the iPhone in specs so buying the lower cost iPhone with no contract is not that much a jump and then you do get GPS an location services. I think a lot of people would prefer the phone over the Touch with that scenario.

manu chao
Jun 27, 2011, 11:09 AM
Just smack a 3G + GSM sim card on an iPod Touch.. Done!

That will worth around $400 I guess.

And how do you sell the existing $650 iPhone alongside this '$400' iPhone, if the former only has a slightly better display and body? The trick is to figure out a way to sell this $400 iPhone without impacting too much on the sales of the $650 iPhone.

NinjaHERO
Jun 27, 2011, 11:09 AM
Now that is interesting. A 4GS and a 5 Iphone. Would explain all of the rumor decent. Maybe there is a 4G version with cheaper insides.

rmhop81
Jun 27, 2011, 11:09 AM
And how do you sell the existing $650 iPhone alongside this '$400' iPhone, if the former only has a slightly better display and body? The trick is to figure out a way to sell this $400 iPhone without impacting too much on the sales of the $650 iPhone.

3GS vs. IPHONE 4

manu chao
Jun 27, 2011, 11:11 AM
same here. if this were nothing more than an iPod touch with a cell radio, earpiece and relocated mic, i'd buy it.

iPhone A: 16GB, A5, 4G radio, 8MP camera, $199 on contract
iPhone B: 8GB, A4, 3G radio, 3MP camera, $299 contract free

something like that. heck to save money, just lower the price of the iPhone 4. which is more likely.
Or they could simply reduce the profit margin on the iPhone from 70% to 30% and reduce the price from $650 to $300. But wait, they would have to sell more than twice as many iPhones to generate the same profit.

Sjhonny
Jun 27, 2011, 11:12 AM
I don't know a single pre-paid plan that has a lower bang for the buck then a post-paid (Belgium). But still, in the States, people using an iPhone spend a 17" MBP every two years, just for a phone and a connection. I mean damn ... Still don't see a reason why the iPodphone wouldn't cannibalize iPhone sales. Like women or not so tech savvy persons, that want to be trendy, don't have an bottomless pocket and call a lot and are now an 110$/month plan ... why would they use a regular iPhone? Or kids who's parents use an iPhone and decide to buy them a new phone. Where it would've been an iPhone (something they now is decent and Apple is easy on but really fast with within warranty repairs), it's now a iPodphone (illustration: there are four kids in my sisters class (15) that own an iPhone - it's legally forbidden to work until the year you become 16 here in Belgium, so how do you think they payed for it?)

WLS
Jun 27, 2011, 11:13 AM
And how do you sell the existing $650 iPhone alongside this '$400' iPhone, if the former only has a slightly better display and body? The trick is to figure out a way to sell this $400 iPhone without impacting too much on the sales of the $650 iPhone.

You could go back to original resolution screen for the cheap one, that would save a lot on the screen cost and still give plenty of motivation to the tech savvy users to upgrade. Also use a smaller battery and go back to the curved plastic back. I guess it would be a lot like a 3GS.
It's funny the way some people who say "who would buy the more expensive iphone" are the first to say they wouldn't buy the cheaper one if it were basically a 3GS.
This cost reduced iPhone is clearly not going to have all the premium features that the techies love but it probably would be "good enough" for a lot of people. It would be perfect for parents to buy for their kids because of the "find my iphone" feature so they can track them. They will be not buying a new Touch then for them. If Apple does bring this to market this Fall a big chunk of the Touch market is going away and it will too soon after.

manu chao
Jun 27, 2011, 11:15 AM
hm, for the US:

what if they release a iPhone 5 unlocked for $649, a locked iPhone 5 with contract for $200 and an unlocked iPhone 4 for $349?

I would buy the iPhone 4 unlocked and run it on my current ATT contract. And so would many people and therefore the cheap unlocked iPhone would cut into Apples high end sales.

3GS vs. IPHONE 4
Exactly that is why they sell currently the unlocked iPhone 3GS 8 GB for $568 (pre-tax, UK price) and not for $350 and the iPhone 4 16 GB for $677.

Reach9
Jun 27, 2011, 11:18 AM
same here. if this were nothing more than an iPod touch with a cell radio, earpiece and relocated mic, i'd buy it.

iPhone A: 16GB, A5, 4G radio, 8MP camera, $199 on contract
iPhone B: 8GB, A4, 3G radio, 3MP camera, $299 contract free

something like that. heck to save money, just lower the price of the iPhone 4. which is more likely.

The pricing is sound. But it would be like so..

iPhone 4: 16GB, A4, 3G, 5MP camera, $99 on contract
iPhone 4S: 8GB, A5, 3G, 3MP camera, $299 contract free
iPhone 5: 16GB, bigger screen, changed design, A5, 3G, 8MP Camera, $199 on contract

Apple releasing an iPhone 4S, and an iPhone 5 could make the contradicting rumors legitimate.
Also, this way they wouldn't be fragmenting the devices either, since the only thing that might change with the iPhone 5 is a bigger screen.

Ugg
Jun 27, 2011, 11:32 AM
T-Mobile contract here in Germany: 55
Prepaid with even better conditions: 20

We should be so lucky. Mobile contracts in the US are a total ripoff. Virgin Mobile and PCS are the only two that offer reasonable no-contract plans.

osx11
Jun 27, 2011, 11:34 AM
Americans just love paying $1000+ per year for their cell phones. And then they wonder why they are all in debt. Couple that with a daily $4-5 Starbucks drink and you have roughly $2.5K for an iphone and coffee for ONE YEAR. Over 40 years, that comes out to be $100,000 for a cell phone and a daily morning coffee. That's just stupid.

bushido
Jun 27, 2011, 11:36 AM
Americans just love paying $1000+ per year for their cell phones. And then they wonder why they are all in debt.

just look at their college fees :eek: here people bitch bc they have to pay 300

rmhop81
Jun 27, 2011, 11:47 AM
Americans just love paying $1000+ per year for their cell phones. And then they wonder why they are all in debt. Couple that with a daily $4-5 Starbucks drink and you have roughly $2.5K for an iphone and coffee for ONE YEAR. Over 40 years, that comes out to be $100,000 for a cell phone and a daily morning coffee. That's just stupid.

it's not like there are many options in the USA to where people just flock to the contract for an iphone. There are ZERO options here unless you're tech savvy to figure out things on your own.

i agree, paying over $100/month for a cell phone is crazy, but sadly there aren't many options here in the US unless you go with Virgin Mobile etc.

Ugg
Jun 27, 2011, 11:58 AM
it's not like there are many options in the USA to where people just flock to the contract for an iphone. There are ZERO options here unless you're tech savvy to figure out things on your own.

i agree, paying over $100/month for a cell phone is crazy, but sadly there aren't many options here in the US unless you go with Virgin Mobile etc.

It's time for some anti-trust action. If ATT is allowed to buy T-Mobile, the US wireless market is doomed.

rmhop81
Jun 27, 2011, 12:00 PM
It's time for some anti-trust action. If ATT is allowed to buy T-Mobile, the US wireless market is doomed.

yup, it's a sad situation. but that is how mostly everything is run in US.

what would be the point of a sim card if it can ONLY be run on AT&T

Westside guy
Jun 27, 2011, 12:01 PM
We paid for a monthly "family plan" for several years before realizing none of us make many phone calls anymore - as a group, we were under 100 minutes pretty much every month. So a few months ago we switched to prepaid plans, and I got a smartphone - an LG Thrive (Android) phone - for $149. I put my own 32GB microSD card in there, so I guess you could say the price was about $210. And as far as the monthly fees go... even with my daughter's unlimited texting and my data plan (small, since I'm around wi-fi 95% of the time), we're well under $50 a month for the three of us.

I'd prefer an iPhone, but if they're going to strip it down to get it to that price point that'd pretty much kill the deal. With my current phone I've got 3G, Wi-Fi, Bluetooth, and true GPS - all of which work pretty darn well. The Google apps integration is basically seamless (better than on my iPod Touch). Google's beta voice navigation program is amazing! I definitely see a falloff in quality when it comes to generic apps on the Android Store versus on Apple's App Store, and while I have a workable music/podcast solution it's not as nice as Apple's; but it's not enough to make me want a dumbed-down iPhone at a significantly higher price.

Somehow or other companies like LG manage to get all the pieces you want in there for a significantly lower cost than Apple does. You can argue about the quality of the "ingredients" - something I've done when it comes to my Mac laptops - but, at least with this phone, the components certainly seem good enough. The screen hasn't scratched, the touch interface is responsive, and it feels solid; most everything works the way you'd expect.

Benjamins
Jun 27, 2011, 12:03 PM
I honestly don't care about the iphone price.
Data plan is the expensive part.

Lesser Evets
Jun 27, 2011, 12:17 PM
Does anyone else's brain go to a dial tone the moment they read the word "analyst"?

iMacThere4Iam
Jun 27, 2011, 12:25 PM
We should be so lucky. Mobile contracts in the US are a total ripoff. Virgin Mobile and PCS are the only two that offer reasonable no-contract plans.

+1. Apple entering the prepaid market would change peoples' perceptions in the U.S. that prepaid = poor, with low quality phones to choose from. The iPhone would be the first truly desirable smartphone offered by smaller carriers in the U.S.

This would be a market changer, no question. If there were enough defections away from the big carriers' contracts, AT&T and Verizon might get off their arses and have to work for a living. It's called good old - fashioned competition. Then maybe we'd see rate plans that didn't equal monthly cable bills.

It may take a few years, but Apple could once again show another industry how a different approach could net even more profits, whilst giving us lowly consumers better products.

shanmugam
Jun 27, 2011, 12:26 PM
same here. if this were nothing more than an iPod touch with a cell radio, earpiece and relocated mic, i'd buy it.

iPhone A: 16GB, A5, 4G radio, 8MP camera, $199 on contract
iPhone B: 8GB, A4, 3G radio, 3MP camera, $299 contract free

something like that. heck to save money, just lower the price of the iPhone 4. which is more likely.

$299 is the sweet spot, if you remember the iPod generation, they did a research work on the price and and figure it out $249 is the magic price point.

iPod Touch prices goes cheaper
iPod touch 8GB - $149

No contract required - NO Mandatory data plan required
iPhone 5 Nano - 8GB - $299 - $0 with two year voice plan - data plan pay as you use
iPhone 5 Nano - 16GB - $399 - $99 with two year voice plan - data plan pay as you use

Usual two year contract phones with Mandatory data plans
iPhone 5 - 16GB - $499 - $199 with two year voice and data plan
iPhone 5 - 32GB - $599 - $299 with two year voice and data plan

Both iPhone 5 and iPhone nano pick your specs or Apple picks the specs to differentiate the product.

charlituna
Jun 27, 2011, 12:26 PM
I just hope that the new iPhone that is ramping up is an iPhone 5 rather than just an iPhone "4GS". That would be disappointing, and not worth the wait.

Hate to tell you but that is in fact, according to my sources, what it is. Starting in 2010 they went to a flat number system. iphone 4, iphone 5, iphone 6. No more of the #s stuff. So this year is the iphone 5 and it is a basically minor spec bump over the iphone 4. Next year when LTE should be mature enough to warrant support they will have the big update.

AS for this $349 rumor, it's not a new phone. It's the 8GB iphone 4 that would be in line with the whole 3g+3gs, 3gs+4 that they did the last couple of times. Because component prices have come down they are going to be able to reduce the price, though my sources tell me that it's only down to $399, not $349. And yes because it is unlocked if you go full price if the carriers choose to support pay as you go you will be able to use that option. There is also talk that, if the carriers do support a PAYG microsim for voice, they might allow for 'no contract' 3g like the ipads have.

Jerome Morrow
Jun 27, 2011, 01:24 PM
This will be, let's say, an iPhone 4 with 8 GB of memory, no gyroscope, and no front camera. (Or something like that.)


The parts you mention cost next to nothing, so it wouldn't make sense to castrate the device this way.

Westside guy
Jun 27, 2011, 01:44 PM
Another way could make cheap iphone is to include no internal storage and add a micro SD card slot. not very apple though. :D

Big microSD cards don't cost that much - I got a 32GB class 4 for $60 to put in my Android phone.

If doing this somehow shaved a huge amount of money off the cost of an iPhone... there'd be a revolt from the legions who've paid way too much for a relatively small amount of flash memory. :D

Michael Scrip
Jun 27, 2011, 01:51 PM
Big microSD cards don't cost that much - I got a 32GB class 4 for $60 to put in my Android phone.

If doing this somehow shaved a huge amount of money off the cost of an iPhone... there'd be a revolt from the legions who've paid way too much for a relatively small amount of flash memory. :D

Just curious.... if you could rate the speed of Apple's Flash memory... how does it compare to the fastest MicroSD card?

I wonder if you could tell the difference.

ericmooreart
Jun 27, 2011, 02:09 PM
currently it cost around 188 dollars to make an iPhone 4. (minus vender markups, shipping etc.)
http://www.businessweek.com/technology/content/jun2010/tc20100627_763714.htm

Step by Step guide to a cheaper iphone:

1 - Ditch the Retna Display
2 - 128mb ram
3 - 256mb of storage standard and add a micro sd slot
4 - go with a slower processor
5 - Ditch all the unnecessary glass

Thunderhawks
Jun 27, 2011, 02:15 PM
Does anyone else's brain go to a dial tone the moment they read the word "analyst"?

Everybody is an analyst.

I predicted that Apple will come out with a new iphone already last year:-)

MacPhilosopher
Jun 27, 2011, 02:25 PM
Wow the USA and Canadas pre-pay market is tiny!

Most likely because we are more amenable to corporate power and control of our fiscal lives. In America, corporate power supersedes individual rights until proven otherwise through long, expensive legal battles.

Sjhonny
Jun 27, 2011, 02:41 PM
+1. Apple entering the prepaid market would change peoples' perceptions in the U.S. that prepaid = poor, with low quality phones to choose from. The iPhone would be the first truly desirable smartphone offered by smaller carriers in the U.S.

This would be a market changer, no question. If there were enough defections away from the big carriers' contracts, AT&T and Verizon might get off their arses and have to work for a living. It's called good old - fashioned competition. Then maybe we'd see rate plans that didn't equal monthly cable bills.

It may take a few years, but Apple could once again show another industry how a different approach could net even more profits, whilst giving us lowly consumers better products.

But you can already buy iPhones without a contract??? What do you think, they'll sell iPhones with a prepaid? :p

Westside guy
Jun 27, 2011, 02:44 PM
Just curious.... if you could rate the speed of Apple's Flash memory... how does it compare to the fastest MicroSD card?

I wonder if you could tell the difference.

That's a good question - I haven't run a test.

I do know that writing 17GB of music files takes a long time, whether to my old iPod Touch or to my phone's flash card. :D

Sjhonny
Jun 27, 2011, 02:49 PM
currently it cost around 188 dollars to make an iPhone 4. (minus vender markups, shipping etc.)
http://www.businessweek.com/technology/content/jun2010/tc20100627_763714.htm

Step by Step guide to a cheaper iphone:

1 - Ditch the Retna Display
2 - 128mb ram
3 - 256mb of storage standard and add a micro sd slot
4 - go with a slower processor
5 - Ditch all the unnecessary glass

as long as SJ is alive - this will not happen. I don't recall apple (since 2000) ever taking a (full) step backwards on hardware level with a new upgrade. Why do so many people want to see the pricegaps 'dissapear' in apple's product line-up? I mean, al those devices serve different purposes, so why should there pricestags flow over in each other?

Hell0W0rld
Jun 27, 2011, 02:55 PM
currently it cost around 188 dollars to make an iPhone 4. (minus vender markups, shipping etc.)
http://www.businessweek.com/technology/content/jun2010/tc20100627_763714.htm

Step by Step guide to a cheaper iphone:

1 - Ditch the Retna Display
2 - 128mb ram
3 - 256mb of storage standard and add a micro sd slot
4 - go with a slower processor
5 - Ditch all the unnecessary glass

mirco sd slot? Iphone? Not going to happening.
And the glass is a design decision. A non glass device would not fit into their product line.


Honestly, I would buy a cheap(er) Iphone, right now I carry an Ipod Touch and a "dumb" prepaid phone with me, witch is exactly one device too much.

But a device like this:
189$ - 289$
Prepaid
Ipad like dataplan
Ipod 4th-gen specs

is just too much to ask for, is it :apple:? :o

vanzantapple
Jun 27, 2011, 03:05 PM
It's already been said but I'll say it again:
iPod Touch with a Radio.

I'd be interested in a cheaper iPhone but there is no way that I'm paying for a data contract.

manu chao
Jun 27, 2011, 03:11 PM
AS for this $349 rumor, it's not a new phone. It's the 8GB iphone 4 that would be in line with the whole 3g+3gs, 3gs+4 that they did the last couple of times. Because component prices have come down they are going to be able to reduce the price, though my sources tell me that it's only down to $399, not $349.
Currently the 3GS + 4 couple goes by $545 and $649.
Unless Apple is able to cut costs significantly, going to $399 means either lower margins across the board or a greater price difference between the two models.

It's already been said but I'll say it again:
iPod Touch with a Radio.

I'd be interested in a cheaper iPhone but there is no way that I'm paying for a data contract.
Who says you need to pay for a data contract, any pre-paid voice SIM from AT&T or T-Mobile will work in any iPhone model.

Ugg
Jun 27, 2011, 03:40 PM
Currently the 3GS + 4 couple goes by $545 and $649.
Unless Apple is able to cut costs significantly, going to $399 means either lower margins across the board or a greater price difference between the two models.


Who says you need to pay for a data contract, any pre-paid voice SIM from AT&T or T-Mobile will work in any iPhone model.

It'll be interesting to see what the price will be. But, and this is important, it's not so much the US they're targeting, remember only ~5% of Americans go the prepaid route, but the RoW (Rest of the World). The iPhone has proven to be the Trojan Horse so to speak when it comes to increasing market share of its computers and iPads. There are billions of people out there who could greatly benefit if they had a smartphone like the iPhone. Many of those people might eventually upgrade to a tablet or laptop.

Apple would be crazy not to target them and that means the price has to be reasonable. As has been mentioned, the cost of making it has come down, this might well be the time to lower the price.

WLS
Jun 27, 2011, 04:20 PM
It'll be interesting to see what the price will be. But, and this is important, it's not so much the US they're targeting, remember only ~5% of Americans go the prepaid route, but the RoW (Rest of the World). The iPhone has proven to be the Trojan Horse so to speak when it comes to increasing market share of its computers and iPads. There are billions of people out there who could greatly benefit if they had a smartphone like the iPhone. Many of those people might eventually upgrade to a tablet or laptop.

Apple would be crazy not to target them and that means the price has to be reasonable. As has been mentioned, the cost of making it has come down, this might well be the time to lower the price.
Very true and the elephant in the room that nobody is mentioning is CHINA. Tim Cook is over there now sealing the deal on a prepaid (likely) type phone that they will sell millions of. Anybody wanna bet that phone is a the cost reduced model that is being talked about? It could be an iPhone 4 but I see more profit at a lower price for them in a 3GS spec'ed phone. E.G. It will still have the A4 cpu but ditch the retina display.

tardegrade
Jun 27, 2011, 04:31 PM
I have a pay-as-you-go, dumb phone and a 32Gb iPod touch that cost me 249, here in Blighty.

I have no need for a contract phone as I rarely ever need to call out. The iPhone 4 is 509 pre-pay though. So I can't justify the expense, it makes no sense to pay that much.

So a pre-pay 8Gb iPhone for 249'ish ($349), well I'd be at the front of the queue. Sounds like a great idea. I really think that would expand their market even more over here.

manu chao
Jun 27, 2011, 04:55 PM
currently it cost around 188 dollars to make an iPhone 4. (minus vender markups, shipping etc.)
http://www.businessweek.com/technology/content/jun2010/tc20100627_763714.htm

Step by Step guide to a cheaper iphone:

1 - Ditch the Retna Display
2 - 128mb ram
3 - 256mb of storage standard and add a micro sd slot
4 - go with a slower processor
5 - Ditch all the unnecessary glass

Or just get a used iPhone 3G 8 GB, should be available for about $200 unlocked by now (in most countries carriers unlock the phone for you after the, usually 2-year, contract is up).

Doc750
Jun 27, 2011, 04:56 PM
I think it will do extremely well. I could even see my parents picking one up at this price. And if my dad loses the phone (which he tends to do) it won't hurt as much.

maclaptop
Jun 27, 2011, 05:03 PM
This would be good. Too bad they couldn't come in at a lower price point. Imagine a prepaid iPhone for $99? Our dream would actually come true then, every human on earth would have an iPhone, all other companies would disappear, and we could bask in the euphoria of world consisting only of Apple. It makes my heart skip a beat to think that this day is coming.

You have got to be kidding, drones everywhere... :eek:

skier777
Jun 27, 2011, 05:21 PM
Virgin Mobile! Haha
Hey, for $25 a month, you can't really go wrong especially have an iPhone too. :p Too bad that's CDMA though

Virgin Mobile Canada offers the iphone. Ive been waiting for it to come to the US for a while now. I have VM and love it but there is a severe lack of phone choice in the upper end of things.

skier777
Jun 27, 2011, 05:27 PM
Currently the 3GS + 4 couple goes by $545 and $649.
Unless Apple is able to cut costs significantly, going to $399 means either lower margins across the board or a greater price difference between the two models.



Most likely carriers will pay apple a bit too, so it will be a subsidized thing. You might pay 399 and Virgin or Verizon will pick up 100 of the slack, knowing that people paying 400 for a phone are likely to be using the prepaid service for a while.

actripxl
Jun 27, 2011, 05:33 PM
it's not like there are many options in the USA to where people just flock to the contract for an iphone. There are ZERO options here unless you're tech savvy to figure out things on your own.

i agree, paying over $100/month for a cell phone is crazy, but sadly there aren't many options here in the US unless you go with Virgin Mobile etc.

There are plenty of options, the problem is that most people are too dumb to get informed and prefer to shiny phone over one that would suit them just fine at a much reduced monthly rate. I love Virgin Mobile, $25 a month for unlimited text, data and 300 mins. which is enough for me since I use nettalk to make calls when I'm at home.

I would gladly trade in my ipod touch and optimus v to trade up to an iPhone, I've lived abroad so paying flat out for my phone is nothing new with a $300 price tag.

skier777
Jun 27, 2011, 05:34 PM
Upon looking at Virgin Mobile Canada which is a prepaid offering the iphone, it seems that you basically pay the 650 price but you can allocate a lot of the to stored credit. Essentially if you pay for the next year of service in advance, you get the phone for $150 or so.

Certinfy
Jun 27, 2011, 05:39 PM
I use pre-pay (cheaper for me in the UK) and to be fair I don't want a iPhone Nano or whatever, I want the 'real' thing, either way I'm buying the iPhone 5 sim free when it's released.

iSayuSay
Jun 27, 2011, 05:46 PM
IF it is true indeed, well then it's RIM's funeral for sure. People in 3rd world countries loves BB so much, because they did this very same thing years ago.

At the beginning, BB was expensive as hell and quite dumb device (although quite smarty smarty at that time). If iPhone decide to jump into that market (which is the majority) .. well then you just know what would happen.

Android? .. hmm maybe wouldn't die .. but hurting indeed, they'd have to make cheaper and better device for around $200 or less.

Many people use android because they want iPhone sensation with much lower price range a.k.a knock off, although some hi-end Android (which priced on par w/ iPhone) offer very good experience. And many other use BB for their messenger.

Now if iPhone come in $350 version, with iMessage, well .. it's slaughtering, I guess :p

It's like displaying $599 Macbook Pro in front of $499 crappy Windows laptop

tmofee
Jun 27, 2011, 05:54 PM
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Mobile/8J2)

It won't be an iPhone 4 - I think the tech is still a little new to sell at that price point. What I see happening is an update 3GS - give the internals a ramp up, stick a FaceTime camera, maybe a flash camera and the retina screen.

In australia you can also get decent prepaid plans. I just got out of a bad mobile deal - while I wait for whatever comes next, I myself bought a decent sim only plan for my 3gS .. Also at the moment here most telcos have to add extra to their deals for the iPhone 4, or buy it yourself outright. I can see them giving this cheap phone away like other models..

AaronEdwards
Jun 27, 2011, 06:26 PM
3GS vs. IPHONE 4

3GS vs. Iphone 4 is about one thing.

Customers who can't calculate the total cost of the phone for the entire contract.

Saving $150 for a lesser phone that you still have to pay the same contract for? Then there's the fact that you would be able to sell the Iphone 4 for a lot more than the 3GS when the contract is over. So, you're going to save a lot less than $150.

captain kaos
Jun 27, 2011, 06:30 PM
Its possible. I can see getting people into the apple world is a good way of getting more longterm owners (a bit like mcdonolds!)

But like the article says, what would the take out to lower the price? And at the moment you've got 2 series of phones still being sold by apple, with a third coming along soon. Would they move everything down a level, the iphone 4 shifted down to the 3gs, or would it be a totally new stripped down phone? For it to be a new phone wouldn't that make apples line up 3 phones? New stripped down model, the iphone 4 (as there is going to be a lot of stock around!) and then the 5.

doctor-don
Jun 27, 2011, 06:38 PM
Americans just love paying $1000+ per year for their cell phones. And then they wonder why they are all in debt. Couple that with a daily $4-5 Starbucks drink and you have roughly $2.5K for an iphone and coffee for ONE YEAR. Over 40 years, that comes out to be $100,000 for a cell phone and a daily morning coffee. That's just stupid.

So you buy coffee for 50 times more than what it costs when I make it?
And you live in another part of the world where taxes are not added to the cost of everything?
Before those 40 years have passed, people will not pay for a cellphone. It will be embedded into their bodies with a technology that has not been imagined yet.
BTW, have you priced that vehicle most people drive over 40 years?

just look at their college fees :eek: here people bitch bc they have to pay 300

You aren't comparing oranges to oranges. Education is paid with taxes paid in European countries.

it's not like there are many options in the USA to where people just flock to the contract for an iphone. There are ZERO options here unless you're tech savvy to figure out things on your own.

i agree, paying over $100/month for a cell phone is crazy, but sadly there aren't many options here in the US unless you go with Virgin Mobile etc.

Options are present. Simple reduce your plan when your situation changes.

It's time for some anti-trust action. If ATT is allowed to buy T-Mobile, the US wireless market is doomed.

AT&T should NOT be allowed to absorb T-Mobile. That (merger) is just ridiculous.

We paid for a monthly "family plan" for several years before realizing none of us make many phone calls anymore - as a group, we were under 100 minutes pretty much every month. So a few months ago we switched to prepaid plans, and I got a smartphone - an LG Thrive (Android) phone - for $149. I put my own 32GB microSD card in there, so I guess you could say the price was about $210. And as far as the monthly fees go... even with my daughter's unlimited texting and my data plan (small, since I'm around wi-fi 95% of the time), we're well under $50 a month for the three of us.

Our family plan provides peace of mind, so it is worth the monthly. The problem is that after being a loyal customer for 15 years, that 2-year contract should be eliminated. A useless, broken phone should NOT be something I am required to pay for every month remaining on the contract. That is just stupid.

Ugg
Jun 27, 2011, 06:56 PM
There are plenty of options, the problem is that most people are too dumb to get informed and prefer to shiny phone over one that would suit them just fine at a much reduced monthly rate. I love Virgin Mobile, $25 a month for unlimited text, data and 300 mins. which is enough for me since I use nettalk to make calls when I'm at home.

I would gladly trade in my ipod touch and optimus v to trade up to an iPhone, I've lived abroad so paying flat out for my phone is nothing new with a $300 price tag.

I sold my iPod Touch when I bought my Optimus V thinking I wouldn't need it. I don't really need it but I do miss it. Apple just does things better. However, it's not worth an additional $900 a year. If Apple doesn't come out with a less expansive prepaid phone, then I'll be buying this year's new iPod Touch.

28monkeys
Jun 27, 2011, 06:58 PM
iPhone 4G and iPhone 4S?

They live on debt

iSayuSay
Jun 27, 2011, 07:11 PM
Seriously though, if Apple gonna make $350 iPhone, how much iPhone 4 (unlocked and no contract) would cost after iPhone 5 or 4s or whatever released later?

I think it'd be around $400? And iPhone 4 still an excellent machine, I bet it's still huge improvement from 3GS to 4 .. compared to 4 to 4S or 5

info
Jun 27, 2011, 07:38 PM
Whatever it is... I'm in! ;)

k1121j
Jun 27, 2011, 08:03 PM
Apple can reach the sub $350 dollar phone.
Apple sells an ipod touch for $229 +$100 for 3G chips and stuff and you have a $329 phone they can do it but will they?

I dont think they will you have the late model that will sell for less like the 49.00 3GS with carrier support. if the carriers don't play nice they would do it until then why not the 3G iPod that cant make voice calls like the iPad 3G

rmhop81
Jun 27, 2011, 08:06 PM
There are plenty of options, the problem is that most people are too dumb to get informed and prefer to shiny phone over one that would suit them just fine at a much reduced monthly rate. I love Virgin Mobile, $25 a month for unlimited text, data and 300 mins. which is enough for me since I use nettalk to make calls when I'm at home.

I would gladly trade in my ipod touch and optimus v to trade up to an iPhone, I've lived abroad so paying flat out for my phone is nothing new with a $300 price tag.

Virgin mobile is the only cheap option. Nothing else compares. What is the point of unlocked gsm phones if AT&T and tmobile join together? Options are very limited here. I'm on $2/day GoPhone plan as I rarely use the phone, yes it's pretty cheap bc I don't use it often. AT&T and tmobile are still around $50 month per phone.

haruhiko
Jun 27, 2011, 08:08 PM
ANALyst again.


The cheaper iPhone is the iPhone 4 when the iPhone 5 is available.

rmhop81
Jun 27, 2011, 08:09 PM
3GS vs. Iphone 4 is about one thing.

Customers who can't calculate the total cost of the phone for the entire contract.

Saving $150 for a lesser phone that you still have to pay the same contract for? Then there's the fact that you would be able to sell the Iphone 4 for a lot more than the 3GS when the contract is over. So, you're going to save a lot less than $150.

Ur talking about a contract in a prepaid thread. Look at differences in the 3GS vs iPhone 4. They could do the same thing when iPhone 5 comes out and it won't hurt sales of the new phone.

k1121j
Jun 27, 2011, 08:09 PM
Virgin mobile is the only cheap option. Nothing else compares. What is the point of unlocked gsm phones if AT&T and tmobile join together? Options are very limited here. I'm on $2/day GoPhone plan as I rarely use the phone, yes it's pretty cheap bc I don't use it often. AT&T and tmobile are still around $50 month per phone.


Dosent $2 dollars a day = $50+ a month?

rmhop81
Jun 27, 2011, 08:12 PM
Dosent $2 dollars a day = $50+ a month?

I don't use it daily as I'm around wifi and use talkatone for calls. And no $2x30 doesnt equal $50

k1121j
Jun 27, 2011, 08:20 PM
I don't use it daily as I'm around wifi and use talkatone for calls. And no $2x30 doesnt equal $50

ok i stand corrected.

But i said "$50 +" (PLUSS) a month" its actually $60.82 a month is that better for you

Do you own an iPod? i know a bunch of folks that have both a prepaid and an iPod they use as a day planner etc.. would make perfect sense for those people don't you think.

rmhop81
Jun 27, 2011, 08:22 PM
ok i stand corrected.

But i said "$50 +" (PLUSS) a month" its actually $60.82 a month is that better for you

Do you own an iPod? i know a bunch of folks that have both a prepaid and an iPod they use as a day planner etc.. would make perfect sense for those people don't you think.

No I don't own an iPod and I'm not sure what your argument is??

shanmugam
Jun 27, 2011, 08:28 PM
iPod Touch prices goes cheaper
iPod touch 8GB - $149

No contract required - NO Mandatory data plan required
iPhone 5 Nano - 8GB - $299 Contract free - $0 with two year voice plan - data plan pay as you use
iPhone 5 Nano - 16GB - $399 Contract free - $99 with two year voice plan - data plan pay as you use

Usual two year contract phones with Mandatory data plans
iPhone 5 - 16GB - $599 Contract free - $199 with two year voice and data plan
iPhone 5 - 32GB - $699 Contract free - $299 with two year voice and data plan

captain kaos
Jun 27, 2011, 08:31 PM
Also, perhaps this "lower spec" phone will be sim free. This could slowly work in Apple's want to to go this way in production of the full spec phone.

cvaldes
Jun 27, 2011, 08:33 PM
It should be pointed out that professional analysts are notoriously poor at predicting what Apple will do and that Huberty and Whitmore are even worse than their peers.

Source: Apple's 92% earnings windfall: The bloggers nail it, the pros miss by a mile (http://tech.fortune.cnn.com/2011/04/21/apples-92-earnings-bump-the-bloggers-nail-it-the-pros-miss-by-a-mile/)

winston1236
Jun 27, 2011, 09:04 PM
the prepaid smartphone market is small because the big carriers dont offer it, this would open the iphone to those that otherwise cant get one from a carrier like those with terrible credit for example

twoodcc
Jun 27, 2011, 09:22 PM
i would love to see this, but i doubt it will happen

Rodimus Prime
Jun 27, 2011, 09:40 PM
iPod Touch prices goes cheaper
iPod touch 8GB - $149

No contract required - NO Mandatory data plan required
iPhone 5 Nano - 8GB - $299 Contract free - $0 with two year voice plan - data plan pay as you use
iPhone 5 Nano - 16GB - $399 Contract free - $99 with two year voice plan - data plan pay as you use

Usual two year contract phones with Mandatory data plans
iPhone 5 - 16GB - $599 Contract free - $199 with two year voice and data plan
iPhone 5 - 32GB - $699 Contract free - $299 with two year voice and data plan

I am going to be blunt and to the point. No way in Hell would the carriers allow the iPhone 5 Nano (if it comes out) to not have a required data plan. They learned that lesson already. The Nano would be considered a smart phone and would require a data plan plane and simple. No way around that fact. It would be nice if they did not require it but they will force it on you.

That being said I will believe this when I see it because I think we are up to this rumor popping up in one form or another before the 3G, 3GS, iPhone 4 and now yet again.
So with 3 times before pointing to it is not happening it pretty much not happening.

Add to it Apple does not play in the cheap realm. THey play in the higher end areas only. They do not sell in the cheap zone in any area it plays in.

Westside guy
Jun 27, 2011, 10:22 PM
I am going to be blunt and to the point. No way in Hell would the carriers allow the iPhone 5 Nano (if it comes out) to not have a required data plan.

With AT&T's current (single) smartphone prepaid offering, you are indeed required to carry a data plan.

It only has to be the $5/10MB plan though.

AppleScruff1
Jun 27, 2011, 10:56 PM
You have got to be kidding, drones everywhere... :eek:

That is every true Apple followers dream. We brag about being different, then once everyone joins us to be different, then we all become the same. I hope for the day when every product and service is provided only by Apple. I'm talking food, clothing, gasoline, air travel, trains, cars, motorcycles, bicycles, AppleMart instead of Walmart, etc, etc. Let your imagination run wild. Doesn't it feel so good?

Ugg
Jun 27, 2011, 11:46 PM
Add to it Apple does not play in the cheap realm. THey play in the higher end areas only. They do not sell in the cheap zone in any area it plays in.

Well, that used to be the case but then they introduced the iPad.

Also, they have always had roughly three levels of a product. Pro, Prosumer and basic. Desktops, laptops, iPods, they've all followed the same path. It only makes sense for the iPhone to also have different levels. I'm sure the iPad will also follow this route eventually.

For me, it's not a matter of if, but rather what prices Apple will put on these phones. $299 is my sweet spot, but...

tombubi
Jun 28, 2011, 03:00 AM
Interesting idea. Lets find out whether it is true or not in a few months.

Grade
Jun 28, 2011, 06:57 AM
For me paying higher then 299$ for phone is to expensive, and also data plans is simply a robbery.

So an pre-paid Iphone with that price or 249$ is the right price.

manu chao
Jun 28, 2011, 07:03 AM
I am going to be blunt and to the point. No way in Hell would the carriers allow the iPhone 5 Nano (if it comes out) to not have a required data plan.
Because all over the world excluding North America, carriers let you use whatever plan you want with any phone when you don't want a subsidy for the handset from them.

There are countries where even selling a phone with a SIM-lock is illegal. In North America it might be a good first step to make the locking of SIMs [that are associated to a voice-only plan] to voice-only handsets illegal.

Rodimus Prime
Jun 28, 2011, 09:10 AM
Well, that used to be the case but then they introduced the iPad.

Also, they have always had roughly three levels of a product. Pro, Prosumer and basic. Desktops, laptops, iPods, they've all followed the same path. It only makes sense for the iPhone to also have different levels. I'm sure the iPad will also follow this route eventually.

For me, it's not a matter of if, but rather what prices Apple will put on these phones. $299 is my sweet spot, but...

I would still call the iPad a more luxury device and higher price point. Apple does not really fight the the race to the bottom. They really only sell in the luxury category.

rmhop81
Jun 28, 2011, 09:11 AM
I am going to be blunt and to the point. No way in Hell would the carriers allow the iPhone 5 Nano (if it comes out) to not have a required data plan. They learned that lesson already. The Nano would be considered a smart phone and would require a data plan plane and simple. No way around that fact. It would be nice if they did not require it but they will force it on you.

That being said I will believe this when I see it because I think we are up to this rumor popping up in one form or another before the 3G, 3GS, iPhone 4 and now yet again.
So with 3 times before pointing to it is not happening it pretty much not happening.

Add to it Apple does not play in the cheap realm. THey play in the higher end areas only. They do not sell in the cheap zone in any area it plays in.
you're thinking in terms of phone contracts. If you check out the prepaid gophone from AT&T for example....data packages are not forced on anyone they are simply an OPTION....which is the way it should be.

alent1234
Jun 28, 2011, 09:24 AM
Add to it Apple does not play in the cheap realm. THey play in the higher end areas only. They do not sell in the cheap zone in any area it plays in.

that's right, apple only sells in the snobby wal marts and they don't have cheap MP3 players for less than $100 that only offer a minimum of features

#1 rule of business, have cheapo products to protect your high end profit makers. a lot of companies started in the cheap and low end of the market and worked their way up to high end products at someone else's expense

Ugg
Jun 28, 2011, 09:35 AM
I would still call the iPad a more luxury device and higher price point. Apple does not really fight the the race to the bottom. They really only sell in the luxury category.

I disagree. The iPad allows Apple to reach people who couldn't afford an Apple computer. Its ease of use is great for older people and the price makes it very appealing for schools. Most consumers don't need a desktop or even a laptop, a tablet will do just fine and at $500, the price really can't be beat. Plus, there aren't any Android tablets out there that have provided any competition.

Apple has always done an amazing job at keeping their prices high while providing a range in their product line up. I honestly do believe that they've reached the point where they need to provide a range of iPhones in order to draw in all the people who don't want to pay $100 a month. However, I have no idea about prices or features.

Bubba Satori
Jun 28, 2011, 10:23 AM
A friend of mine wants to get a job as an 'analyst' here's his resume:

I'm breathing and can walk

They're over qualified. :D

ArchaicRevival
Jun 28, 2011, 11:00 AM
No, I don't want iPhone Nano, but an iPhone on Virgin Mobile would be sick!!!

mccldwll
Jun 28, 2011, 11:48 AM
Our family plan provides peace of mind, so it is worth the monthly. The problem is that after being a loyal customer for 15 years, that 2-year contract should be eliminated. A useless, broken phone should NOT be something I am required to pay for every month remaining on the contract. That is just stupid.


Huh? Not really. The purpose of the 2 year contract is to reclaim the @$400 subsidy. If a phone breaks, replace it subsidy-free (used on eBay), or return the original subsidy (buy out contract). Not complicated. Of course, consumers really should be allowed to buy phones subsidy/contract-free, and bring the phone to carriers at a reduced monthly rate (@$18) reflecting no subsidy received. Consumers should also get a similar monthly reduction on a subsidized phone after 2 year contract expires.

AaronEdwards
Jun 28, 2011, 02:00 PM
that's right, apple only sells in the snobby wal marts and they don't have cheap MP3 players for less than $100 that only offer a minimum of features

#1 rule of business, have cheapo products to protect your high end profit makers. a lot of companies started in the cheap and low end of the market and worked their way up to high end products at someone else's expense

Compare the features of the iPod Shuffle with the features of the Sansa Clip+, you're not even getting a screen with the Shuffle.
You're paying a premium even for Apple's cheapest mp3 player.

AaronEdwards
Jun 28, 2011, 02:07 PM
I disagree. The iPad allows Apple to reach people who couldn't afford an Apple computer. Its ease of use is great for older people and the price makes it very appealing for schools. Most consumers don't need a desktop or even a laptop, a tablet will do just fine and at $500, the price really can't be beat. Plus, there aren't any Android tablets out there that have provided any competition.

Apple has always done an amazing job at keeping their prices high while providing a range in their product line up. I honestly do believe that they've reached the point where they need to provide a range of iPhones in order to draw in all the people who don't want to pay $100 a month. However, I have no idea about prices or features.



I'd disagree that you can't find a computer for $500, unless you're looking for a new one from Apple.
And I'd disagree that an iPad is a good replacement for computer for school children, a Tablet isn't very good for typing.
How many do you know who is using their computer for work, not just browsing or watching movies, and have actually replaced their computer with an iPad?

Ugg
Jun 28, 2011, 02:40 PM
I'd disagree that you can't find a computer for $500, unless you're looking for a new one from Apple.
And I'd disagree that an iPad is a good replacement for computer for school children, a Tablet isn't very good for typing.
How many do you know who is using their computer for work, not just browsing or watching movies, and have actually replaced their computer with an iPad?

Most consumers don't need a desktop or even a laptop,

That is what I said. People who use laptops or desktops for work will buy an iPad to supplement what they already have, not replace it.

My brother was interested in buying a 3G enabled netbook. I told him that he's still going to have to wait for it to start up, deal with all the issues of a normal computer, buy a mouse and would end up with not very much battery life. He got a Samsung Galaxy and is very happy with the instant on aspect, long battery life and lack of a windows type operating system. Tablets are very much WYSIWYG. Most people are perfectly happy with them. The era of a computer having an incomprehensible operating system is over.

For smaller children, tablets are excellent computers, maybe up to age 12 or so. After that age, tablets will probably be too small for their fingers.

christian_k
Jun 28, 2011, 05:11 PM
Yeah, the folk I know with prepaid phones don't fall into that category. But a lot of them do a lot of business and travelling around Europe so I guess that's a reason to avoid contract.

Sim cards for each country, it's a winner.

Here in Germany it makes sense to use prepaid even if you never leave the country.
There are many cheap prepaid plans. Usually offered by virtual network operators. Usually you pay 9 cent per minute and 9 cent per SMS. Mailbox and incoming calls are free.
For 10 you get a data plan for a month. This includes 300 or 500 MB which is enough for a smartphone in most cases. Even if it is not, you won't be disconnected. They just limit your speed to 64 kbit/s for the rest of the month.

I think there are good reasons why prepaid plans are often cheaper than contracts: The operator does not offer "free" or "cheap" devices. The operator does not have to create or send bills. There are no problems with customers who do not pay bills etc.

It is not uncommon to buy a phone like a Desire cash and use a cheap prepaid plan. If some other provider becomes cheaper you throw your SIM away and get a new one. In many cases it is even possible to keep the same phone number...

Christian

Optheduim
Jun 28, 2011, 05:33 PM
prepaid... thats what muh pop's been waitin for...

dethmaShine
Jun 29, 2011, 08:26 AM
- Essential for markets where pre-paid/post-paid plans are very popular. Among best examples would be markets like: India, China, Malaysia, etc.

I belong to India and I'm aware that almost every person who buys a phone is on a post-paid [per monthly] or a pre-paid plan. But both these plans do not include the cost of the phone. You've got to buy the phone yourself. $350 sounds like a great price for such a market.

- Lets be honest: not everyone affords an iPhone. I used to have an iPhone but at present I use Mozart7. I got a couple of Trophy7s for mom and my aunt.
Why? - work like an iPhone -- touch screen ... but cheaper than the iPhone. An iPhone 4 would have cost me close to 500. I got the other two for a total less than 500. :rolleyes:

- Not everybody carries an expensive phone. If I were to gift a phone to my little brother or probably my girlfriend, I'd buy a cheaper - non-iPhone model. If a cheaper option was there, I wouldn't have been bothered at all.

iPhone has to become cheap overtime if Apple needs to take care of some more people. They are going good with whatever they have but if they need to aggressively compete, they need a cheaper iPhone.

This is news:

http://9to5mac.com/2011/06/29/apple-gunning-for-android-in-india-with-unlocked-iphone-3gs/

Not the most reasonable price, but we shouldn't forget: this is Apple!

Apple has divulged plans to relaunch its iPhone 3GS, which was then only available through network operators like Vodafone and Airtel. The new unlocked version will come with 8GB internal storage at a very reasonable price of 19,990 Indian rupees (about $444). Apple’s latest iOS version 4.3 supports iPhone 3GS, making it a worthy opponent to similarly-priced Android devices with better hardware. Apple has also said that iOS 5 will work on iPhone 3GS though it is likely that not all features will be supported.

Something seems going.

WLS
Jun 30, 2011, 08:24 AM
Seems like Apple is going into the low cost no contract market after all contrary to what some of the self styled "experts" here say.

http://9to5mac.com/2011/06/29/apple-gunning-for-android-in-india-with-unlocked-iphone-3gs/#more-77756

http://www.tuaw.com/2011/06/30/apple-will-reportedly-re-launch-unlocked-iphone-3gs-in-india/

They are establishing the lower cost market tier with a no contract 3GS in India now. You can bet that there will be new models coming out just for this tier. Probably they will announce a new model in the Fall along side a high end one.
And so it begins