Apple Launching Larger, Low-Cost iPhone for Emerging Markets Late This Year?

[newagemac]

how would a larger phone be lower cost? Will it just be a bigger screen in a cheap body.....making us again choose between size and current standars/form factor (mini/ipad comparison)

It's a lot easier to make a large phone than it is a small phone assuming they have similar tech inside. The smaller the size, the harder it is to design and engineer a solution because all that tech has to be stuffed into very little space. Also since the battery has to be smaller, you have to have better software design so that battery life remains good.

Hence the reason very few high end phones are made in smaller sizes. It's extremely difficult to accomplish something like the iPhone. Most other manufacturers don't even try. Even Apple had to go slightly taller to cram the LTE radio in there. Still amazing they were able to make it even thinner and didn't have to make it wider and still have top of the line battery life.

They should be able to make a big phone no problem. It's cheaper and much easier to do.

 

[JoeG4]

Except that large screen phones almost always cost more than small screen phones. The lg Optimus is a very cheap small phone, just like the iphone 4 and 4s are dirt cheap (on contract). That the 5 is so insanely expensive unlocked probably means that very few people in the us purchased it unlocked. This the majority of buyers are contract customers that can't afford a lump sum that big..... This iphone users are lower class
</sarcasm>
Or
You could stop being a jerk justifying your purchase by saying people that buy other products are lower class. Lol sadness.

 

[MacManTexas56]

because CPU and GPUs are outdated.

Its like Intel would like to sell cheap PCs with Pentium 4. Market doesn't work that way and Apple iOS constantly evolves to require faster processors. So old models will not cut after 1-2 years.

people who want a cheap iphone aren't going to care. if they care, they spend the money and get one with better specs. The problem is they knock only $100 off and call it a cheaper version. They need like a $199 or $249 iphone 3gs or 4 without contract. Instead they still want $499 for an iPhone 4.

 

[apple-win]

Fanboy mentality

When Apple makes a big screen iPhone, fanboys will praise for Apple

 

[Popeye206]

I don't think Apple is stupid. I think if (BIG IF) they did come out with a 5 inch screen iPhone, it would be based on some customer needs. Even with the iPad Mini, I'm sure there was some research done to determine this product was needed and not just someone deciding it's time to do a smaller iPad to compete against the smaller tablets.

With that said, I just don't buy this rumor. It's so opposite of the way Apple works. They don't play the "cheap" game. IMHO it would be the beginning of the end for them if they started down this route.

 

[MacManTexas56]

Except that large screen phones almost always cost more than small screen phones. The lg Optimus is a very cheap small phone, just like the iphone 4 and 4s are dirt cheap (on contract).

that's the problem....they aren't dirt cheap though in reality. contract prices mean nothing. The devices are still $399+

 

[drumrobot]

Please, don't lower yourself to the level of regurgitating this [...].
This rumor makes NO SENSE.
1. Apple's not going to release a BIGGER smartphone so that they can make it CHEAPER. That's just ridiculous. Forget the fact that they're unlikely to change the screen size to begin with--the price argument alone is just ludicrous.
2. Apple already has the iPhone 4 for free plus the iPhone 4S for $99 (and less from some retailers). There's no reason to make a brand-new, deliberately crippled phone when they already have the old one.
3. Apple is not one to target the bottom segment of the market. If you cannot afford a free iPhone 4 or cheap iPHone 4S, then you probably won't be swayed by a new iPhone that's just as cheap.
4. Apple will not release an iPhone Nano.
4a. Fragmentation.
4b. TOO [...] SMALL. Downsizing iPhone buttons would make them too hard to hit.
4c. How much money would they actually save from a slightly smaller screen? Seriously. That just doesn't make sense.

[...]

 

[stuffradio]

Nope, too much pain for the developers

That's what people said about the 4" iPhone, or 3.97" or whatever it is.

 

[daneoni]

No they're not. They already have a low-cost iPhone, its called iPhone 4.

 

[Saladinos]

Make cheap phone with a huge display, to appeal to lower class people. Sounds like Android in USA!

Exactly. After all the reports this week about how netbooks did incalculable damage to the PC industry by lowering the maximum price people are willing to pay for a PC, this seems an unwise move.

Apple are usually careful about prices - their prices never rise between updates. That's because there's hysterisis to these things - once you drop the cost, it's not easy to raise it again (even to the level it was at before).

Also, to those mentioning the iPhone 4: stop it. You're assuming everyone is on contract, which is an assumption that's hugely biased towards the USA. In other countries, pay-as-you-go is far more popular. The off-contract price for an iPhone 4 (8GB) is £319. If I look on most major carriers sites, they don't even list the iPhone off-contract (e.g. http://shop.o2.co.uk/mobile_phones/Pay_And_Go). The phones they do have include a Galaxy S3 Mini for £70 less than the iPhone would cost you, if you even knew you could get one for that price (of course they won't tell you in the store; they probably don't even know themselves).

 

[xofruitcake]

Hmmmm . . .

Lower cost components?
-Non retina
-Big display
-Older processor
-Minimal storage

Hey! It's the iPad Mini!!!

I don't think the retina is a big ticket item. It is the in cell touch that is expensive. A6 by then should be in the best part of the cost curve, so we may see A6 also. The part that will change drastically is going to be in the distribution (may be strictly partner and no Apple store access.. Can't imagine how Apple store can handle the size of customers that a low cost Iphone will bring), warranty (may be 30 days Apple care and only mail order repair), and marketing. Apple is setting up to sell premium device at a premium price. If they were to sell a mid priced Iphone in developing world, they need to reshape the entire marketing and service strategy to fit the expectation and cost constraint. BOM (bill of material) is only a part of the overall cost.

PS: Appleinsider has an article that mention snapdragon as the cpu for the cheaper Iphone. It makes sense in that Apple is transitioning from Samsung to TSMC as their CPU fab partner. It is doubtful that either one of them can produce A5/A6 in sufficient quantity for the low cost Iphone (which can easily sell 60-80m unit a quarter vs about 26-37m unit Iphone 4S and may be 35-50m Iphone 5 units a quarter kind of rate)

 

[apple-win]

...
That the 5 is so insanely expensive unlocked probably means that very few people in the us purchased it unlocked. This the majority of buyers are contract customers that can't afford a lump sum that big..... This iphone users are lower class
</sarcasm>
Or
You could stop being a jerk justifying your purchase by saying people that buy other products are lower class. Lol sadness.

Good point

 

[Eidorian]

because CPU and GPUs are outdated.

Its like Intel would like to sell cheap PCs with Pentium 4. Market doesn't work that way and Apple iOS constantly evolves to require faster processors. So old models will not cut after 1-2 years.

You know when people want to buy budget models, they don't have to buy outdated ones. Might be new CPU but with say, 5 mp camera and no headphones or larger display but not IGZO but more traditional.

Similar to Samsung using outdated Pentile technology for their huge screens (which of quite poor quality in reality).

It is cheaper for Intel to harvest Sandy Bridge or soon Ivy Bridge dies than continue to use a die shrunk Pentium 4 on the latest process node. Older fabs are relegated to other sorts of less sensitive controllers that Intel can sell while higher margin ones move onto brand new products.

On top of that, people are glad to tell me that their iPhone 4 is the best thing since the introduction of the talkie. How old is that phone now?

 

[thehustleman]

Would be a great idea.

Let's be honest, Apple has a great profit margin on each phone sold, they can afford to make a larger screen (something they should have BEEN SOME) and lower the price simultaneously.


Should do the same over here, but with marketing being the way it is in the states, people will buy it just because it says Apple despite the fact it costs more and does less.

I can't hate them for it though, it's brilliant and they learned how to sell non full featured products for more than full featured products

 

[centauratlas]

how would a larger phone be lower cost? Will it just be a bigger screen in a cheap body.....making us again choose between size and current standars/form factor (mini/ipad comparison)

I agree. Unless the screen is a non-retina display, but bigger size, but the same number of pixels. To me that scenario seems unlikely...but who knows outside Cupertino.

 

[SmileyBlast!]

The iPhone 5 is probably lower cost to make than the iPhone 4s.
It has chip consolidation for the cellular and wireless modems and has a unibody design as opposed to the glass front and back on the iphone 4s.

It probably cost about $150 to make a 64 Gb model.

So there is room for Apple to make a lower cost version and sell it only in China to corner more of that market.

I wouldn't diminish my brand in other parts of the world but India and China are large enough markets to warrant this consideration for a specialty product. That being said, it feels like a compromise. I dont' think Steve Jobs would ever have done it.

 

[S.L.]

I see their business angle, but how about calling it 'a by Apple' or something like that? when a large company wants to put out a cheaper product line of any product, they somehow try and differentiate themselves from their main line. Perhaps Apple will think of something like this....

 

[baslotto]

This is Steve Job's dream: make a million different product fast for everybody's pockets! Way to go Apple!

 

[StoneJack]

This is Steve Job's dream: make a million different product fast for everybody's pockets! Way to go Apple!

Under Steve Jobs, Apple made so many different types of ipods that you can hardly count them all.

And it made Apple one of biggest companies in the world.

Not 4 models of PCs.

 

[tctony]

Cheaper and larger? Do these idiot "journalists" even try anymore?

 

[FrankieTDouglas]

Please, no. I feel like the 5 is even too big. My hand is straining to reach icons and the home button is awkwardly sandwiched at the bottom. The 4/4S, even after now owning a 5, still felt like an ideal size.

 

[menithings]

This will happen IMO. Here's how...

This will happen IMO. We'll fist see a cheaper & larger iPhone followed by a premium version. It's simple logic and a great idea. Here's how I think things will go down:

- 4.5" low end iPhone: This will feature a lower cost, lower DPI screen, but have the exact same 1136x640 resolution as an iPhone 5. Therefore the screen will be physically larger than the 5 yet require zero need to re-code any apps (like the iPad mini). The lower DPI will be acceptable for the price while the larger screen will be in line with the competition. This will be sold in emerging markets right alongside similarly sized Android phones.

- 4.5" to 5" high end iPhone: This will come a quarter or two after the low end iPhone. It will be Retina (same DPI as iPhone 5) but its dimensions will expand to at least 1280x720 resolution. The aspect will remain 16x9, so scaling will be proportional. This will require developers the re-author their apps once more for the larger resolution, but at this point they should all have made the transition to iPhone 5. Legacy apps will simply have a thin black border all the way around.

This represents a measured approach. Developing markets will first get a cheep but large iPhone with no app changes, followed later by a premium super iPhone with a new larger resolution.

 

[adildacoolset]

1. See Samsung and others buid high-end behemoth 5+" phones, while the iPhone is 4"
2. Launch low-end 5" phone
3. See everyone start thinking that 5" phone = low-end phone
4. See the high end of the market go back to 4" phones
5. Profit

This may be genius... Discredit Samsung, LG and everyone by letting customers think that big = crappy. And give strength back to the small form factor of the flagship high-end iPhone...

This seems as believable as when people said that the iPhone 5 leaks were to throw us off

 

[coolspot18]

Leave it to Samsung to create those cheap and ridiculous tablet sized phones.

The Samsung Galaxy Note 2 is a great device ... Good size compromise between an iPhone and a tablet.

 

[adildacoolset]

Apple has a chance to do something in the smartphone industry that no one else has done:

Make two versions of the same flagship phone, but in different sizes. Samsung raised hopes of this with the GSIII Mini, which turned out to be a piece of crap in a smaller package, not a smaller GSIII.

If Apple makes the 5S or 6 in a 4" form factor, then uses the SAME internal hardware, but makes a 4.8" version, so the ONLY difference between them is the screen, it would make a LOT of people happy. Those of us who don't want a giant phone would be happy because we could still get a compact smartphone that has all the features and speed and high end build that a flagship device deserves (Android has exactly ZERO phones that fit this right now), while offering that same high end flagship experience with a high end 4.8" display for those who want a bigger phone.

If Apple moves their flagship device to 4.8 or 5, while keeping the 4" size as a lower cost alternative, it'll make me rather upset, as I have no interest in anything larger than about 4.2" in a phone, but I still want speed, build quality and high end features. If they make a big phone and make it 'cheap' like the article implies, it'll upset people the other way.

Even better, have the one on the 4.8" screen with a doubled resolution of the one of the iPhone 5, to put those 1080p phones to shame. Just like how the iPad put existing tablets to shame until the nexus 10

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When Apple makes a big screen iPhone, fanboys will praise for Apple

I honestly don't really like big screens. If it's over 4.5", it's too damn big!