Digitimes Backtracks on Earlier Claim of Larger, Cheaper iPhone

[bdkennedy1]

Modern Journalism: Get the scoop first no matter how inaccurate it is. Later backtrack and say, "Ooops! Our bad."

[HobeSoundDarryl]

I realize that plastic is cheaper than aluminum but the latter is a very cheap material too (and there's not much of it used in an iPhone shell "as is"). How much of a difference could switching the shell material make in the cost of the "cheap" iPhone? $10? Maybe $20?

I perceive the concept of a need for a cheaper iPhone to be something that competes with the really cheap Android smart phones (which can be had for much less than $300, $500, or $700 off contract) is going to take more than just replacing a little aluminum with a little plastic. That switch helps cut unit cost (a little). I would think much more would have to be cut to have a shot at a truly cheap iPhone that still gives Apple it's target margin.

[PBF]

So no Meth this summer?

[Northgrove]

Good, it seemed a bit odd for a couple of reasons. Although I almost began looking forward to an iPhone Meth. It may just be what Apple needs to keep their fans addicted, now that Steve Jobs is gone.

[powers74]

As a turntable comes scratching to a stop.

Originally Posted by HobeSoundDarryl

I realize that plastic is cheaper than aluminum but the latter is a very cheap material too (and there's not much of it used in an iPhone shell "as is"). How much of a difference could switching the shell material make in the cost of the "cheap" iPhone? $10? Maybe $20?

Especially if it's going to be Milled polycarb. The process and time are the major cost factors in this case, not the material.

[akbarali.ch]

Ooops !

[TMay]

Originally Posted by sulpfiction

Hopefully, iOS 7 will see some welcomed changes, and i think it'll be one of the biggest updates to iOS.
As far as hardware goes, we will see a 5S looking exactly like the 5 with the usual spec bumps + 1 new feature not available on the 5. I don't think it will be NFC, but more like a camera/flash upgrade.

I think that iOS 7 will have some UI changes, but not enough time to redevelop it. I agree with those that state iOS 8 (or even later). Jony Ive doesn't rush things.

[pnoyblazed]

Originally Posted by tigres

Whatever it is, iOS7 better be huge.

I've read that comment before about ios6...

[Chupa Chupa]

No worries Digitimes. No intelligent person believes anything you publish anyway.

----------

Originally Posted by bdkennedy1

Modern Journalism: Get the scoop first no matter how inaccurate it is. Later backtrack and say, "Ooops! Our bad."

Very true BUT only applies to once journalistically honest orgs. Digitimes has been a rag ever since Issue #1.

[Moonjumper]

Originally Posted by HobeSoundDarryl

I realize that plastic is cheaper than aluminum but the latter is a very cheap material too (and there's not much of it used in an iPhone shell "as is"). How much of a difference could switching the shell material make in the cost of the "cheap" iPhone? $10? Maybe $20?

I perceive the concept of a need for a cheaper iPhone to be something that competes with the really cheap Android smart phones (which can be had for much less than $300, $500, or $700 off contract) is going to take more than just replacing a little aluminum with a little plastic. That switch helps cut unit cost (a little). I would think much more would have to be cut to have a shot at a truly cheap iPhone that still gives Apple it's target margin.

It isn't the price of the material that is the issue, it is the price of manufacturing using that material. Machining is more expensive than moulding.

But still, that wouldn't be enough to create a price differentiation. I expect there to be other differences. The material will just as much be about identifying the premium option as it will price.

As an example of the differences I mean. The iPod Touch 4th gen had a lower spec screen than the iPhone 4, even though it had the same resolution. The cheaper iPhone might also be thicker because it misses out on in-cell screen tech.

EDIT: powers74 also made a comment about machining cost while I was writing this reply.

[JAT]

But...but, I've already sold my 5 in anticipation!

/s

[xraydoc]

No s*** Shirlock.

[thelink]

Stop lying to me!!

[ts1973]

Apple lost me as an iPhone customer the moment their phone went over €500 (unlocked). So unless they truly offer something under €500 that's worth having (and not talking 2 year old tech), I'll continue to explore the other side of the fence... Sorry but IMHO the Apple tax is growing ridiculous : €700-900 for a phone, my God what are they smoking in Cupertino

[mdriftmeyer]

In short, ``Don't blame us for taking cash to create a false story to drive the stock down. Blame unnamed sources.''

Withe SEC and DoJ announcing an investigation into these `stories' and stock selloffs I truly want to see some hedgefunds roll.

[Rogifan]

So this iPhone Math is just BS?

[KdParker]

Originally Posted by Rogifan

So this iPhone Math is just BS?

I sure hope so. I just hope whatever they do it will be a new improved form factor.

[trunten]

I didn't see this coming

[HobeSoundDarryl]

Originally Posted by powers74

Especially if it's going to be Milled polycarb. The process and time are the major cost factors in this case, not the material.

How much of a difference in unit costs though? Spread to tens of millions of units, I can't believe aluminum to plastic, milling, molding and the relevant processes could result in much of a difference in unit costs so that we end up with a much cheaper iPhone retail price.

Nevertheless, every rumor pitches the lower cost iphone with the rationale of using a plastic case instead of aluminum... as if that will make some huge difference. It's not like we're going from platinum or gold to plastic. It's from very cheap metal (is there a cheaper metal) to cheap(er) plastic... but not that much cheaper that I would expect retail unit cost to be significantly less.

If someone thinks aluminum to plastic (milling, process, etc inclusive) will result in a significant reduction of the retail unit price for us consumers, please post how much of a difference you expect. My completely uneducated guess would be maybe $10 per unit. I can't imagine there could be- say- $50 in savings at the retail price per unit level from switching cases.

If this hypothetical cheaper iPhone is coming, it seems it will need lots of cuts in the guts: battery, memory, flash, processor, screen quality, etc. Else, if the guts are about as good as the aluminum-cased phone, then how many is likely to choose the pretty case at a premium over the plastic case at a big discount?

[Sir Ruben]

Originally Posted by sulpfiction

Hopefully, iOS 7 will see some welcomed changes, and i think it'll be one of the biggest updates to iOS.
As far as hardware goes, we will see a 5S looking exactly like the 5 with the usual spec bumps + 1 new feature not available on the 5. I don't think it will be NFC, but more like a camera/flash upgrade.

Not to sound like a Debbie Downer but there is a strong chance that IOS7 will be nearly indistinguishable from IOS6, and IOS5. Big changes arent going to happen to the software or the hardware, only incremental changes. Thats just how Apple rolls!

Saying that if they do shake it all up then I will take it as a sign that they are feeling the competition lol

[joneill55]

Originally Posted by bdkennedy1

Modern Journalism: Get the scoop first no matter how inaccurate it is. Later backtrack and say, "Ooops! Our bad."

Often, not even a retraction or a "sorry, our bad" :-)

[nepalisherpa]

Originally Posted by Dreamer2go

I really don't like this idea of having a "bigger" iPhone...
It's like Apple is just listening to customer's demand, but not being the "leader", creating something that will make the user think: "why didn't I think of this" or... "Apple is right!"

sigh.

Good thing you didn't start a company!

[jrswizzle]

Originally Posted by Sir Ruben

Not to sound like a Debbie Downer but there is a strong chance that IOS7 will be nearly indistinguishable from IOS6, and IOS5. Big changes arent going to happen to the software or the hardware, only incremental changes. Thats just how Apple rolls!

Saying that if they do shake it all up then I will take it as a sign that they are feeling the competition lol

These things are generally in production at least a year ahead of their release (hardware side, I'd bet they have the next 2-3 iPhones planned already)....

To say Apple will release ANYTHING as a knee-jerk reaction to competition is ridiculous. If a 4.8" iPhone happens this year or next, I'd guess it was in production/planning back in 2011.....

This is also the reason I don't see the UI of iOS 7 being much different - Ive & Co. just haven't had enough time as it was already in production when Forstall got ousted....

I expect the iPhone 6/iOS 8 to be the big game changers - and will hold on to my iP5 until then!

[imageWIS]

Since 'analysts' make wild-ass assertions, without ever needing to be right. I'm going to call myself an analyst and predict that this is the next iPhone:

[MacRumorUser]

Originally Posted by ConCat

It's okay... Nobody believed them anyway.

Really ? The readers comments on the other thread would suggest otherwise...