Analyst Speculation on $99 iPhone and Higher Resolution iPhone 3G

[MacRumors]

MSNBC put the spotlight on a new report by RBC Capital Markets analyst Mike Abramsky who believes that an entry-level $99 iPhone will arrive in June or July alongside an upgraded (higher screen resolution) iPhone 3G.

The report echos many similar analyst reports over the past year which have also pointed to the possibility of an entry level $99 iPhone. The analyst even published this detailed chart about what he believes the breakdown might be (republished by AppleInsider):





The $99 entry-level iPhone looks remarkably like the original iPhone with an EDGE-only network connection but a discounted monthly plan. The upgraded iPhone 3G, however, seems to only add Video and a higher resolution screen to the mix. The report looks like a rehash of circulating rumors and speculation. And in the end, analyst reports as a whole have been a poor predictor of future Apple products, but we published this for interest's sake.

The possibility of a low-end $99 iPhone was brought into doubt by Apple's acting-CEO Tim Cook, who said that Apple was simply not interested in that market:

We're not going to play in the low-end voice phone business. That's not who we are, that's not why we're here. Goal is not to lead unit sales, but to build the world's best phone.

The next-generation iPhone, however, is certainly in the works as evidenced by model-strings found in the latest iPhone firmware.

One interesting note is that the possibility of an increased resolution (720x480) iPhone might be less of a problem for App compatibility than rumored plans for a smaller Nano screen. While developers may still have to issue new versions of their Apps, scaling to a higher resolution would presumably be easier than the other way around. Meanwhile, the 720x480 resolution has been said to be planned for Apple's long-rumored mini-Tablet/PDA project.

Article Link: Analyst Speculation on $99 iPhone and Higher Resolution iPhone 3G

[Tallest Skil]

Not this worthlessness again...

Different screen resolution = no App Store.
No App Store = no point in sales

Also, they would both have a data plan.

[Eraserhead]

Not if the screen size is the same, and if Cocoa-touch is resolution independent.

All that means is that the better phone would have better quality visuals.

[hacksaw-C87]

I hope that the $99 price is true and that the size is smaller. That would be perfect for me.

[Tallest Skil]

Originally Posted by Eraserhead

Not if the screen size is the same, and if Cocoa-touch is resolution independent.

How long have we been promised resolution independence?

And how long have we had it? Oh, wait...

[taltal]

Why should they downgrade an existing phone? To EDGE? No GPS?

Sounds extremely unlikely to me.

[kymac]

msnbc is microsoft. maybe theyre just trying to stall buyers. hmmmm

[ntrigue]

This sounds very far-fetched to me. We explicitly heard Tim Cook suggest that a cheaper iPhone would diminish a reputation that is already selling plenty of devices. Apple doesn't do cheap-o.

There is no way the resolution is changing. What's all this talk about Resolution Independence? That is a HUGE switch to a Cocoa SDK that is in use for over 20,000 Apps.

[RichP]

Sounds like fluff. I would expect a "low end" data plan to push more units over an actual low-end phone.

And for a higher-res uplevel phone? What would be the point? Unzoomed webpages are almost unreadable now, and objects are too small to touch-to-click. A bigger screen with higher resolution would be useful; not more pixels in the same size footprint.

What the iphone needs right now is a bit more processing power, and a better battery.

[teme]

I think the future changes to iPhone will be based on the AppStore requirements (= they can't change iPhone too much, because apps has to work in all models). I think it's too soon to release a iPhone model that will require new revisions of AppStore apps. Next model could have a better camera, more capacity, maybe better processor to allow multiple apps at the same time. I think the screen resolution will stay the same for sure.

[kastenbrust]

No updates = no annual plan upgrades = no retention for network carriers = bad in recession

2MP camera, are you kidding me? My old Samsung had 8, and my friend who lives in China, had a China Mob phone 4 years ago with a 12MP camera, so basically Apples joking again.
Plus the App stores a joke anyway, the person who approves or disproves apps should be shot.

[Stormbringer]

I don't care if they add a cheaper version (I find it unlikely though), as long as the new "real" iPhone will have a decent upgrade instead of a minor specs-upgrade...

[talkingfuture]

I think they need to do something lower to get people like me who want the PAYG option because I don't spend enough to get a £35/month contract but also don't want to spend £350 on a phone.

[emotion]

I'd like to see a big update to the iPhone (thinner OR more functionality) but it's unlikely as version 2,1 is only around the corner from all accounts. This will have the faster processor that's in the latest touch and maybe more storage but little else is likely to change.

[christian_k]

I don't think that makes sense.

Here in Germany you can get the 3G from T-Mobile for as little as 1€.
Its not the price you pay to get the device, it is the monthly bill that makes an iPhone expensive!

Christian

[kermitspicnic]

Amen boys, at some point (hopefully VERY soon) people are going to have to give this a rest....

[emotion]

Originally Posted by talkingfuture

I think they need to do something lower to get people like me who want the PAYG option because I don't spend enough to get a £35/month contract but also don't want to spend £350 on a phone.

Do they want customers with no money?

They don't seem to need them right now.

[Porco]

There's even a detailed chart in black and white! So it must be true!

[emotion]

Originally Posted by Porco

There's even a detailed chart in black and white! So it must be true!

I should add, that I don't believe any of this analyst talk either.

People on this site know more.

[alexbates]

If it's really a discounted plan, this iPhone will be mine. I wouldn't mind paying $200 for an iPhone, but having to pay $69 a month is way too much.

[talkingfuture]

Originally Posted by talkingfuture

I think they need to do something lower to get people like me who want the PAYG option because I don't spend enough to get a £35/month contract but also don't want to spend £350 on a phone.

Originally Posted by emotion

Do they want customers with no money?

They don't seem to need them right now.

Maybe you've got a point. But I have an iPod touch and buy lots of Apps, music etc. I just don't spend that much on calls and messaging. I want to be able to use the online features that I love on my touch when I am out of WiFi. The PAYG iPhone is perfect but just needs to drop a little in price.

[hob]

Can't wait to get my hands on some of that..... storate....?

[raggedjimmi]

Hmm 32gb is right up my street. I can't imagine them sticking in a higher res screen, what would be the point? Sounds like a HD nuts wet dream more than anything. The resolution is high enough for a 3.5" screen.

[iSimx]

I can't see this happening in june/july if at all. Firstly apple mentioned that they only want to produce high quality products, which doesn't mean releasing an entry level one secondly, with Snow Leopard approaching june/july they definately are unlikely to release two major products at the same time.

[mudenza]

I highly doubt they'd jack up the resolution. But 2MP + Video? Come on thats ridiculous for a phone. I'd expect no less than 3.2MP AF for the next update, thats really whats been lacking in terms of hardware.