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

[Carniphage]

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...

Exactly.
The parents would want fully featured iPhone. But if the kids had these, they'd be in touch via FMF, FaceTime, messages etc.

3G/4G makes it a better gaming device. A better Facebook device - and could be bought, right off the rack. No number. No contract. No lock in.

 

[8281]

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

I don't understand this complaint. Cars are offered with different options. GM doesn't tell you to buy a $100,000 Corvette if you only want to spend $50,000, thus they offer various models.

Maybe people don't want to buy a year (or years) old phone when whey could spend the money on something newer.

 

[Wicked1]

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?

+1, besides the normal is for Apple to make the 4 go away, drop 4S to Free and 5 to go to $99 when the new phone comes out, so why not take the 4S which is a good phone and has 1-2 years left of life and make it the Low cost alternative phone, I just do not see coming up with another supported model to deal with? for that matter, come up with an 8GB IP5 and use that, this way all you have to is support 2 models.

 

[Skika]

I believe this iPhone will replace the 4S offering when the next iPhone hits.
I think they will do this phone because once the next iPhone hits, they dont want no iPhone in their offer that still has the old screen size and old connector.
Basically an 4S in a new(cheaper?) shell.

They will do this to avoid fragmentation/to put people as quickly as possible to the new screen size/connector.

iPhone 5S - 199

iPhone 5 - 99

New cheap iPhone - free

This is my prediction.

 

[lozpop]

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?

Again. In the prepaid markets — so everywhere outside USA, Canada and UK — the iPhone 4 costs 429€ and the iPhone 4S costs 629€. Way more than a 300€ mid-range iPhone.

 

[truettray]

Seems like the timing of this rumor has more to do with shareholders... I think of the iPad mini as a "budget iPad" (it's a fantastic little tablet, don't get me wrong...) and seeing its success, it makes financial sense to do the same with the phone market.

 

[ncaissie]

Am I the only one who thinks the second image looks photo-shopped?
The phone is blurry but the port and headphone jack is clear.

 

[NachoGrande]

If someone can afford the data plan required for the phone, they can afford the $299 phone. If they can't then they really shouldn't own a smart phone.

 

[M-O]

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?

perhaps they plan to get rid of the 4/4s and have this be the free-on-contract option. then the iPad 2 will be the last device to use the 30pin dock connector (which they can easily ax because of the iPad mini).

personally, I would want a contract free $299 iPhone. if that is what this turns out to be, I'm all over it. there are a number of areas where they could probably cut costs... use the A5, no LTE, non-retina display, 5mp camera...

who knows. iPhone, iPhone Pro. almost like the days where the pro machines were aluminum and the consumer line was plastic. (iBook/MacBook vs PowerBook/MacBook Pro).

 

[fruitpunch.ben]

This actually makes total sense to me. By replacing the 4s with the budget phone, Apple is able to make a complete transition if screen size. All phones being sold will be 4", which will let them utilize the space in the upcoming ios update. Maybe they will incorporate the taller app switcher that has been floating around?

Also, it would complete the change to the new charger/synch cable. The consistency may be worth any extra RD costs.

Good post. This is the only reason Apple would consider releasing a "budget" phone.
I hope. Otherwise I might put some stock in the "Apple is doomed" rumours.
We have already seen in this last quarter the effect of the iPad mini. Margins are tighter, and iPad ASP is down, so even though Apple sold more devices than ever before, and revenues were up 20%, profit was flat.
If they release a cheap iPhone, I guarantee it will cannibalize the expensive iPhone, at the expense of profit margin and ASP. Not a good move when the iPhone is already the best selling phone worldwide

 

[M-O]

If someone can afford the data plan required for the phone, they can afford the $299 phone. If they can't then they really shouldn't own a smart phone.

if they buy it off contract, there is no required data plan.

 

[flux73]

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?

I can think of a couple of reasons that Apple might be choosing to do this. #1 Screen size and #2 Margins.

I'm starting to wonder if maybe the low-cost iPhone actually IS the new 5s. If these screenshots are close to being accurate, I don't see why they would even bother offering a 5S that looks so similar to this new cost option.

Perhaps the rumors of the iPhone "Math" are about a second iPhone with a 4.8"-5" screen and metal case, and will cost $100 more than the current 5, while dropping the price on the new 5S by $100. This way, the whole new lineup is new. And while presenting a lower-cost phone (margins should be maintained by then with a mature supply chain and lower cost of plastic vs metal case), a new higher margin product is introduced that might/should make up for any slight margin erosion.

 

[oneMadRssn]

Is any good Android under $299 without a contract?

I frequently see a 16GB Samsung Galaxy S3 Unlocked for $299 or $349 on deal sites. Samsung 32GB Galaxy Nexus is currently selling for $220 here: http://www.dailysteals.com/heist/5705/Samsung-Galaxy-Nexus-32GB

So yes, there are good Android phones for under $299 without a contract. I think a true budget phone should be even less than that.

 

[M-O]

I believe this iPhone will replace the 4S offering when the next iPhone hits.
I think they will do this phone because once the next iPhone hits, they dont want no iPhone in their offer that still has the old screen size and old connector.
Basically an 4S in a new(cheaper?) shell.

They will do this to avoid fragmentation/to put people as quickly as possible to the new screen size/connector.

iPhone 5S - 199

iPhone 5 - 99

New cheap iPhone - free

This is my prediction.

i think they will just get rid of the middle tier. i wonder how well the 4s actually sells. all the supply constraints seem to relate to the iPhone 5 and iPhone 4.

 

[Pez555]

until we know what 'low cost' actually means, we cant really say whether this will come to fruition or not. for all we know this thing could be 199 sim free....

 

[57004]

Great!

I really hope this is true.

I currently have the iPhone 4, the increased price of the iPhone 5 held me back from upgrading (I even bought my 4 second-hand when the 4S was already out ). I think 680 euro is just crazy for a smartphone.

But if it came to market at 450 euro or so, I would really go for this. Lots of people have problems with the iPhone 5 bending and that should be better with plastic, and I don't need it to be thin. Reception should be improved as well.

It makes sense to me from a pricing point of view, this thing is only meant to come out alongside the 5S and the A6 will be cheaper to produce by then. It won't be the latest but it'll be good enough.

 

[iParis]

iPod classic.. Now that's a name I haven't heard in a long time. If only the rumor was about that instead of a low-cost iPhone. /sigh

 

[carlgo]

The non-smart phone market is huge, about 50% in the US. Many just want an affordable phone and reasonable monthly costs.

Imagine a truly small and thin phone with enough screen to show contacts, family photos and such, play iTunes, blue tooth to use in the car and a nice Apple interface to it all.

Jobs would scream and jump up and down, but here is a possible future line-up that would compete in all markets:

1. Small not-so-smart phone.

2. Cheap iPhone as discussed in this thread. Not that much cheaper to manufacture, but allows Apple to lower the price for more potential customers.

3. The Standard all-purpose iPhone. Top of the line.

4. A big-screen iPhone, for obvious reasons.

 

[Schmitty11]

Guys. There's like 211 other countries or something humble like that. The low cost iPhone id for countries whose citizens can't afford the 4/4s/5/6/6.5gsXL2a.5

 

[sbrhwkp3]

This is completely anti apple. A cheaper version of a product to attract the budget people. That's not what they do. They innovate and create an awesome product that makes the low budget people pinch pennies to afford it. And they always do!

4.8" iPhone is the next spot they need to get into.

 

[HobeSoundDarryl]

+1, besides the normal is for Apple to make the 4 go away, drop 4S to Free and 5 to go to $99 when the new phone comes out, so why not take the 4S which is a good phone and has 1-2 years left of life and make it the Low cost alternative phone..."

FREE* is not the same as "low cost". The market for a low-cost iPhone is the one that doesn't want to get the phone for free* and then pay $2000+ for the "service". The market wants low-cost phone and low-cost service.

I've said it before: put 3G or 4G connectivity in an iPod Touch and give it an iPad data plan (cost of service). Then, sell a ton of these to the parents of the teenagers who desperately want an "iPhone" but their parents don't want to give them a $2000+ total cost of ownership device. iPod Touch 4G + $25/month data is much more desirable than Free* iPhone and $100/month contract.

 

[saturn88]

Apple is currently selling the iPhone 4 for $450, and the 4S for $550. That's not low-cost for countries where carrier subsidy isn't an option.

iPhone 4 for $450 is still overpriced. It cost about $160 in parts and labor.

 

[sparks9]

Great! Bring it on. Would like a smaller form factor tho. The more iPhones the better, and I'm sure Apple will be able to pull off a high quality lower cost iPhone.

 

[saturn88]

I really, really doubt. Apple usually doesn't cater to low-end markets. If they did, we would have had a $600 plastic MacBook years ago.

Plastic Macbook was offered 2 years ago.

 

[theOtherGeoff]

[....]And $299 or $450 is too high for a "cheap" phone. If the goal is to be very competitive on price, Apple needs to be genuinely competitive on price.

Given iOS, the core value add of the iOS Apps that run on all iPhones, at what point in the functionality/capability/iphoneishability is does a phone get it's iPhone/Buddha Nature?

Is it size?
Is it speed?
Is is build quality?
Is it technical functions (gyros, retina, camera quality, touch sensitivity)?

If the goal is to build a price competitive phone, that's one thing, but to build a less expensive iPhone, that's quite another.

That said, the iPad Mini did build a 'less expensive iPad' that took the iPad2, and miniaturized it. That being the model... one would argue that the 4s is the target, that when the '4' retires from it's low rung on the totem pole, the 4s will also disappear, and a new phone will replace both of them as the low end phone (new Lightning connector being the key differentiator).

However other than a liberal application of Magic Pixar dust, I don't know how you can make them less expensive, and still be an 'iphone' in the eyes of a app consumer.

Hence I claim *********.


Me personally, I beleive this is a an Apple plant story to track marked leaks and kill those pathways prior to the release of the new phones/iPads this year. This is Apple's 'Business as Usual' minesweeping process.