I agree, but people want new tech. Also, this cheaper iPhone will be even cheaper than the old high-end models once it's outdated.
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Apple's Low-Cost iPhone Design Said to Be Mix of iPhone 5 and iPod Touch with iPod Classic Curves
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I agree, but people want new tech. Also, this cheaper iPhone will be even cheaper than the old high-end models once it's outdated.
I think people are getting confused with the rumors. I think it a cheap phone to make for Apple not for re-sale. Maybe they will introduce a new iPhone in colors or something like the new iPods and it will be more cheaper for them to do. Not for us.
Completely relevant comparison-- especially considering how big a part of Apple's business the iPhone as become. You already see it with the iPad Mini. (New design, older processor, non-retina display, and therefore a lower cost of entry for users-- plenty of demand. Not the flagship, but definitely a market for it.)
A low cost iPhone could simply be an iPod touch with LTE (or cheaper still with 3G only). In iOS7, add Voice in iMessage as VoIP and that's it. The whole phone runs on data, no phone or texting plan, just data.
Use last generation internal components to keep the price down and a plastic case which is easier and cheaper to manufacture.
Sell it in multiple colours to appeal to teens which Apple needs to win back as iPhone increasingly becomes that "old phone that's been around since I was a kid". Those teens are the adults of tomorrow and if Apple wants to be dominant in this market in 5 to 10 years, they need to win those kids over.
Bringing 3G/LTE to the iPod touch would give Apple their low cost iPhone without cheapening the iPhone brand and it would complete the entire lineup as voice capable finally giving Apple total control over the entire experience.
Use last generation internal components to keep the price down and a plastic case which is easier and cheaper to manufacture.
Sell it in multiple colours to appeal to teens which Apple needs to win back as iPhone increasingly becomes that "old phone that's been around since I was a kid". Those teens are the adults of tomorrow and if Apple wants to be dominant in this market in 5 to 10 years, they need to win those kids over.
Bringing 3G/LTE to the iPod touch would give Apple their low cost iPhone without cheapening the iPhone brand and it would complete the entire lineup as voice capable finally giving Apple total control over the entire experience.
some of you guys sound like elitist. making a low cost iphone isn't a waste. some people want to the ios without paying $200. and some folks just can't afford so why put down the idea of low cost? the nokia 3310 was a cheap but it is still one of the best selling headsets ever.
and in a lot of countries locked iphones cost almost or more than iphones. so a cheaper version would allow more people to have a phone running ios.
only in the first world would someone complain about a cheaper priced mobile phone.
and in a lot of countries locked iphones cost almost or more than iphones. so a cheaper version would allow more people to have a phone running ios.
only in the first world would someone complain about a cheaper priced mobile phone.
Apple won't be making $30 pre-paid flip phones anytime soon, that's true. That's "cheap". The MacBook, MacBook Air, etc-- not cheap. But not necessarily the most expensive or the most powerful. They're definitely more "affordable" than some of their siblings.
What Apple will not do is make a piece of trash. They have standards. And I think it's ridiculous to suggest that Apple can't make a lower cost iPhone without making it a piece of junk. They're already making money hand over fist with the current iPhone.
Notice how it looks like a natural successor to the iPhone 3GS. It even has enough room for a 30-pin dock connector at the bottom.
If you ask me, that is an iPhone 4 prototype. And then came the Galaxy S and bluntly ripped off the design with the silver bezel, and gave birth to something as truly unique as the iPhone 4.
If you ask me, that is an iPhone 4 prototype. And then came the Galaxy S and bluntly ripped off the design with the silver bezel, and gave birth to something as truly unique as the iPhone 4.
Whatever the takeaways, a lower priced iPhone is a welcome to all consumers in 3rd world countries
People are confusing the market, its most likely targeting low income markets where iPhone is not available. Business wise, this is what Apple lacks in, and its how they can increase margins. Unless Google has a huge misstep in its Android OS, Apple's growth will be limited in its existing markets. And even if a low cost iPhone were to cannibalize Apple's profits on its higher cost iPhone, its just as the 4 and 4S are doing to the 5.
I think the idea of a low cost iPhone is a better idea to the re-releasing of the previous gen models. it gives consumers a sense that they're buying something new, even on the low end. And it gives those that bought the previous versions the sense that they have something unique, not available to the public any more.
I think the idea of a low cost iPhone is a better idea to the re-releasing of the previous gen models. it gives consumers a sense that they're buying something new, even on the low end. And it gives those that bought the previous versions the sense that they have something unique, not available to the public any more.
In China, there are plenty of budget smartphones running Android in the $100-200 price range (500-1000 RMB).
That is the outright price. Not contracted.
If Apple wants any sort of marketshare there, they need to offer an alternative to that. Not something that will compete with it on price directly, but something that is attainable for lower-middle class consumers who would otherwise go with Android.
The App Store is Apple's biggest drawcard. In most of the world, it's the dominant software platform for phones. Apple faces the risk of Android becoming the dominant platform in China. If that happens, the entire Apple ecosystem becomes much less attractive there. They have to do something to avoid that possibility.
Additionally, one of the stumbling blocks in recent negotiations with China Mobile was the price of the iPhone. If they want access to the biggest carrier in the world, they have to produce a model to meet their specific demands.
agree 100%, apple can make some serious money with this approach, there are tons of tweens that want something better than a crappy prepaid phone but the parents are unwilling to purchase high end iPhones, this would dominate, hell i might even buy one....
Call me crazy, but I get this feeling they're gonna call this thing "the new iPod" to differentiate it from the more expensive iPhone. They can tout that it's finally an iPod that can make phone calls, now at a cheaper price. People can buy it at the Apple/retail stores and just put in their own sim cards.
This plastic iPhone 5, may come in several colours & would compete with other Android midrange models. In Chine & India they will love this phone as it will make owning an Apple phone affordable. I would love a lighter phone with all the features packed into an iPhone 5s.
I see you didn't get your daily dose of irony...
Lol - the whole cable-gate thing just irritates me...
Path to damn good iPhoneEM
So where will Apple be able to cut costs for the iPhoneEM (Emerging Markets)?
Case materials (plastic vs aluminum)
Screen quality and/or resolution
Camera quality/resolutuion
Higher integration (radio chip from Qualcomm integrated with Ax processor)
Flash memory size
Limited Radio (no LTE)
If you look at today's BOM, the iPhone5 cost is dominated by the display ($44), the Qualcomm radio ($34), and the chassis ($33). Followed by the Cameras ($18), Processor ($17), and Memory ($10 each for DRAM & Flash).
Apple has to be looking to cut these costs in half in order to maintain margins. I'm guessing a thicker older technology screen that maintains the existing resolution to minimize software impact. I'll bet there is a integrated radio/processor in the works that sacrifices some functionality (LTE, Siri) for a single die at a lower cost point. Maybe something exciting is in store for that secret new US fab like licensing Intel's latest 3D process. Thicker lower resolution cameras. Nice polycarbonate body. 8G Flash, no change in DRAM because of software impact. Maybe the DRAM is on die with the processor and radio. That would be awesome.
To get there takes unprecedented integration and a willingness to sacrifice thickness because it drives cost on the display and cameras. The result can be a damn good phone.
So where will Apple be able to cut costs for the iPhoneEM (Emerging Markets)?
Case materials (plastic vs aluminum)
Screen quality and/or resolution
Camera quality/resolutuion
Higher integration (radio chip from Qualcomm integrated with Ax processor)
Flash memory size
Limited Radio (no LTE)
If you look at today's BOM, the iPhone5 cost is dominated by the display ($44), the Qualcomm radio ($34), and the chassis ($33). Followed by the Cameras ($18), Processor ($17), and Memory ($10 each for DRAM & Flash).
Apple has to be looking to cut these costs in half in order to maintain margins. I'm guessing a thicker older technology screen that maintains the existing resolution to minimize software impact. I'll bet there is a integrated radio/processor in the works that sacrifices some functionality (LTE, Siri) for a single die at a lower cost point. Maybe something exciting is in store for that secret new US fab like licensing Intel's latest 3D process. Thicker lower resolution cameras. Nice polycarbonate body. 8G Flash, no change in DRAM because of software impact. Maybe the DRAM is on die with the processor and radio. That would be awesome.
To get there takes unprecedented integration and a willingness to sacrifice thickness because it drives cost on the display and cameras. The result can be a damn good phone.
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Reasons Apple WONT make a low cost iPhone
- Apple builds premium products
- The previous generations iPhones are "low-er cost iPhones"
- Phil Schiller the Senior Vice President of Apple dismissed this rumor
I love these senseless predictions...
- Apple builds premium products
- The previous generations iPhones are "low-er cost iPhones"
- Phil Schiller the Senior Vice President of Apple dismissed this rumor
I love these senseless predictions...
I'd guess that the iPhone 4 case costs more to manufacture than the iPhone 5 case does. The A4 and A5 chips may have been built on older fabs than the A6 is making yields lower and thus per chip costs higher even though they're older and less capable. Continuing to make all the other components might cost more than replacing them with newer parts.
I think Apple could replace the iPhone 4S with a newer design and achieve cost savings over continuing to make the 4S. As side benefits it would eliminate the old screen size, the old 30-pin connector and give them a chance to reduce other costs such as replacing the 8MP autofocus camera with one more appropriate for a lower end phone.
On the flip side Apple should be worried about putting the defective 640x1136 display in the hands of any more gamers. Nothing says "should have bought an Android" like a locked up phone.
This whole "developing markets only" concept is complete and utter crap. There are no borders any more. There is no way the "budget iPhone" would stay in the developing world longer than it takes FedEx to ship it elsewhere. Any country where a significant number of mobile phone users are pre-paid would welcome a less expensive iPhone. Only in places where the carriers refuse to offer any discount if you bring your own phone would the current iPhone continue to be a big seller. I'm looking at you AT&T, Verizon, Bell, Rogers, etc.
are iPod nano/shuffles/ipad mini premium products???? or are they lower priced alternatives to capture a wider market share and increase the people that buy iTunes music/apps.
Apple currently sells the previous generation iPhone as a slightly cheaper option. Replace that with a model that uses the same previous generation innards, but in a cheaper body, and you have more price differentiation and access to a wider market. And the cheaper body can be tailored to suit alternate components that also bring down the price.
They could be looking forward, realising that the difficult-to-manufacture iPhone 5 may not be suitable for becoming the cheap model when the next generation arrives.
They could be looking forward, realising that the difficult-to-manufacture iPhone 5 may not be suitable for becoming the cheap model when the next generation arrives.