Apple's Low-Cost iPhone Design Said to Be Mix of iPhone 5 and iPod Touch with iPod Classic Curves

[AQUADock]

Originally Posted by aerok

I atually prefer this design to the current, I hope the rumors are true.

So do I, if it looks like the iPod touch then I will be interested.

[dmx3698]

Enough with this stuff, apple not going to change design until 2014. iPhone 5 will Be $99 and 5s $199 just like the last three years.

[Ryth]

Tank the stock.

Ride it up.

[Kolmogorov]

Originally Posted by Kolmogorov

Is going to be $ 450 for 16GB version without a contract, and free with a contract? Very nice prices!

What do you think?

Maybe 8 GB version will cost $ 450, 16 GB will cost $ 500? So it can essentially be a plastic iPhone 5, but not that cheaper than then $ 550 16 GB iPhone 5.

I can totally see that people are getting crazy over this 8 GB $ 450 plastic iPhone 5... It's like the $ 650 iPhone 5 dropped $ 200 in less than one year. Kind of unusual for Apple.

[needfx]

iPhodne

[paradox00]

Originally Posted by Razeus

I don't understand this low cost thing. Isn't that what selling the iPhone 4 and iPhone 4S is for???

Those are premium phones sold at a lower price because they have been replaced by a faster phone. Despite some gains in production efficiency, they are still expensive to build.

This would likely replace those phones in the lineup (at least the 4), allowing Apple to reduce prices while also increasing margins.

[MTL18]

I have long been against this because I fear it will eat into Apple's profits heavily. ASP on the iPhone is so high and I like it that way.

If this is an exclusive device for countries where sales are low or non existent, this could make sense. However, if this makes its way into the USA, I'll be bummed.

[Menel]

Originally Posted by Radio

Every single time u guys say it won't come out

It comes out!!!!

Accept it!

We said the strong iPhone 5 wedge rumors wouldn't come to fruition.

Where is it?

However; I think this one is highly plausible. It could even come early with the die shrunk A5 from iPad 2b/iPad Mini.

[absurdamerica]

Originally Posted by onthecouchagain

If this turns out to be true, what will the naysayers do? The ones that said "Apple does not and will never deal with lower end iPhones"?

Their worlds must be crumbling.

And I wonder what the unlocked price of these will be...

Well, there are already people shouting "Apple would NEVER use plastic!!!".

My iPhone 3G disagrees with this.

[rmatthewware]

Originally Posted by daneoni

Am i the only one who thinks this is a waste of time? Isn't the 4S/4 more than sufficient for a low cost option?

The iphone 4 may be free on contract, but it's not actually free. Last I checked it still costs $325 from ATT. I think Apple is wanting to target this to India/China where people may not want to shell out $325 for a phone.

[mtrctyjoe]

I could see something like this happening - this is coming from someone with a supply chain / manufacturing background. Having the 4,4s and 5 with all of the various SKU's for color, market, carrier etc... is probably a nightmare. I am sure they are facing a ton of homologation issues at this point. This might be a way to solve that - however this would present an entire new set of problems relating to marketing. If they could come up with a way to handle the marketing for this new low cost phone - then it might make sense - it certainly would be the right thing to do from a cost/complexity/manufacturing standpoint.

[rmatthewware]

Return of the click wheel!

[tevion5]

Originally Posted by daneoni

Isn't the 4S/4 more than sufficient for a low cost option?

Yes

[Haswell]

I highly doubt Apple would make a cheap iPhone just to gain market share. That's just not Apple's style.

Apple will most likely just offer the iPhone 5 with payments. Or just sell the iPhone 4/4S at a lower cost.

One thing they could do, that no one seems to be talk about is do what Google is doing with the Nexus 4.

Such as making a scaled down iPhone 5 with HSPA+ instead of LTE, with an A5 CPU, 8GB to 16GB of storage and a 5MP camera. So basically adding HSPA+ to the iPod Touch while lowering the storage of the iPod Touch. Which I am guessing would be about $350 for such a device. Not necessarily cheap, but cheaper than the full LTE, A6 iPhone 5.

[Tiger8]

Originally Posted by HobeSoundDarryl

Is any good Android under $299 without a contract? Maybe this will be a product exclusively for emerging markets... like certain high(er) MPG cars priced below near-US-model equivalents and only sold in certain markets where American pricing would never sell?

Yes, Nexus 4 from Google. a top-of-the-line phone for $299.

[CWallace]

The materials costs of the iPhone 4 at launch were $188. Two years later, the materials costs for the iPhone 5 were $199 - $11 more.

I don't see how Apple will be able to significantly lower the build cost of an iPhone. The cost of the iPhone 4's glass and aluminum casing was under $20, so I don't see moving to plastic will save much, especially when the 4" screen with integrated touchscreen is $7 more expensive than the 3.5" display and separate touchscreen on the 4.

Apple currently sells the iPhone 4 for over twice the cost of manufacturing it (materials plus labor). And they sell the 4S for almost three times the cost. Cutting the no-contract price to $300 would still be 1.5 times production cost.

[chiefsilverback]

Originally Posted by Carniphage

In my view, in 2013 Apple will launch an iPod touch with 3G/4G.

It might well look like this.

The device is not a low cost phone. But a low cost internet connected device.
A voice app may be included. And it would of course support Skype and other VOIP applications.

Price will be about $350

The strategy has a number of advantages.
1) It will not significantly cannibalize the iPhone and it's premium.
2) It will sell without a contract in channels that other phone makers can't easily touch. In supermarkets and music outlets and electronics stores.
3) To teenagers, gamers, social networking enthusiasts - it will be a perfect device.
4) While Samsung has an advantage in carrier shops, this takes the battle elsewhere.

This sounds far more feasible and in tune with where trends are going. Do a voice only option in FaceTime and you've suddenly got a new market segment. Parents can add it to their family plans as an 'internet device' and the kiddies can play, tweet, facebook etc.. and speak to mummy and daddy who have iPhones that are compatible with FaceTime...

[coolfactor]

Originally Posted by Wilson1313

I call BS. If they are still using the retina screen, A6 Processor, dual cameras, LTE, etc. then the cost savings for the outside shell are going to be negligible for a low cost version and will not be worth the R&D rather than just selling the previous model, which they have to get rid of anyway.

You said it yourself - R&D. If Apple can manage to deliver this low-cost iPhone through effective R&D efforts, that means they can effectively lower the cost of their regular-priced products by what they have learned. This will help them to increase their margins again. Healthy margins is a large part of their financial success, and yet market demand has been pushing this margin to be reduced the past few years. Everything they can do to increase or maintain healthy margins (cost vs price) is well worth the effort. That's my 2¢.

[AppleWarMachine]

"Apple" and "low-cost" product in the same sentence, I don't like this

[HobeSoundDarryl]

Originally Posted by Carniphage

In my view, in 2013 Apple will launch an iPod touch with 3G/4G.

It might well look like this.

The device is not a low cost phone. But a low cost internet connected device.
A voice app may be included. And it would of course support Skype and other VOIP applications.

Price will be about $350 - $399

The strategy has a number of advantages.
1) It will not significantly cannibalize the iPhone and it's premium.
2) It will sell without a contract in channels that other phone makers can't easily touch. In supermarkets and music outlets and electronics stores.
3) To teenagers, gamers, social networking enthusiasts - it will be a perfect device.
4) While Samsung has an advantage in carrier shops, this takes the battle elsewhere.

I actually think- and have for a very long time- that this would be a very hot product. Offer the iPad data plan options and it would be especially ideal for #3. A lot of parents are going to pay several thousand in total to give their teenagers an iPhone. But that's the phone the teenagers want. So Apple shows up with this and fills that broad want/need with a product for people that would otherwise not get an iPhone. Instead of letting that market build up a big app library of an Android alternative, they lock them into the iOS sandbox and, later, when these teenagers gain enough financial strength to buy their own phone, there will be a strong incentive to buy a "real" iPhone.

[coolfactor]

Originally Posted by absurdamerica

Well, there are already people shouting "Apple would NEVER use plastic!!!".

My iPhone 3G disagrees with this.

Yah, these people are missing the point. Apple will never create a cheap, plastic device — one that *feels* cheap. It may be made from plastic, but it will feel solid and reliable, just like your iPhone 3G does, I reckon. :-)

[KdParker]

Originally Posted by Kolmogorov

Not possible. The budget iPhone has to be much more expensive than iPod touch 5th gen, so $ 450 is more likely.

Wonder what this will do to the resale value of 5/5s when iPhone 6 comes out.

Less demand...so lower resale would be my guess.

[mazz0]

I think that mockup actually looks pretty good! But if they know it's going to be thicker than that and made of a different material, why have they made the mockup like that?

[hovscorpion12]

I have said this in countless threads, but it seams Wall street does not seem to get it. The iPhone 4 & the 4S are being sold for much cheaper then the price they were at launch. The iPhone 5S will be the same price as every iPhone that has been released. $199.00 and up. The only thing that disapoints me is still using a 4" screen. 4.5, 5" is perfect.

[barkomatic]

Originally Posted by Razeus

I don't understand this low cost thing. Isn't that what selling the iPhone 4 and iPhone 4S is for???

Yeah, but those models don't connect to LTE and soon won't be getting new software updates. I could see a market for a low cost, big screen iPhone that connects to LTE networks, but has a plastic exterior and cheaper internals. It's not an "old" model and that makes a big difference to some people. Most people slap a plastic case on the beautiful metal and glass designed iPhone anyway.

Apple has traditionally had a range of products from low to high end on their other product lines like notebooks and desktops so I don't know why this would be so unbelievable.