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Cdaddy112

macrumors member
Oct 10, 2011
85
0
The current iPod touch with the same exact screen as the iPhone 5 is 299 for a 32gb. add 3G/4G to it, start at 299 for an 8Gb model, 349 for a 16gb, and 399 for 32gb and apple will mop the floor with the prepaid market.
 

TheHateMachine

macrumors 6502a
Sep 18, 2012
846
1,354
Reasons Apple WONT make a low cost iPhone
- Apple builds premium products
- The previous generations iPhones are "low-er cost iPhones"
- Phil Schiller the Senior Vice President of Apple dismissed this rumor
I love these senseless predictions...

They could make more of a margin off these cheaper iPhones than the 4/4S. Part of the reason that their margins are compressing is because they are still selling a lot of older iPhones. With the heavy discounting they do it is most likely eating into the iPhone 5 sales. So why not try to get a cheaper to make iPhone out there to strengthen those margins.

Phil Schiller either never said that or it was redacted as the original article that claimed his quote changed their article and removed the quote entirely.
 
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olowott

macrumors 6502a
May 25, 2011
879
0
Dundee, UK
still dont believe this stunt

they are more like describing the iphone5s to me

if this is done, then TIM ******** real bad - " we make only the best products :mad:"
 

Premium1

macrumors 65816
Jan 26, 2013
1,410
1,660
Que all the elitist iPhone owners who will get butt hurt they are making a cheaper version that looks just like the high end model...:rolleyes:
 

iJon

macrumors 604
Feb 7, 2002
6,586
229
Some of you are fools if you don't think Apple is going to work on a lower cost iPhone.

Just because it's lower cost, doesn't mean it's lower quality.
 

Bregalad

macrumors 6502
Jul 22, 2002
434
69
Vancouver
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.

My first choice would be a mini-tablet with phone capabilities, but I would consider a 4G enabled iPod touch if it was inexpensive enough. The loss of usability from having a tiny 4" display would be somewhat balanced by light weight and small form factor.
 

8281

macrumors 6502
Dec 15, 2010
498
641
Wow. Comparing apples to oranges on that one. :rolleyes:

And? If you've nothing else to say, then I can only assume the analogy, however flawed you think it is, works. But if it's that terrible, then compare phones. Android offers a lot of different entry points in terms of price. Apple can do the same and still maintain quality, so what's the problem?
 

currentinterest

macrumors 6502a
Aug 22, 2007
685
699
The current iPod touch with the same exact screen as the iPhone 5 is 299 for a 32gb. add 3G/4G to it, start at 299 for an 8Gb model, 349 for a 16gb, and 399 for 32gb and apple will mop the floor with the prepaid market.

Exactly, or perhaps $329 at 16 GB and no 8 GB model. The less expensive, not cheap iPhone will be a thicker, plastic iPod touch (sharing the same internals and display) with the addition of a phone. It will come in multicolors. My guess is the large Chinese carrier asked for it and made an upfront commitment and that is why we will see it.

The line up under contract will be:

iPhone 5S $199 (fingerprint technology, better camera, faster)
iPhone 5 $99
New iPhone $0
No 4S or 4, all iOS 7, Siri, LTE, and 4 inch displays.

Huge hits all.
 

nia820

macrumors 68020
Jun 27, 2011
2,131
1,980
Why are people so against plastic casing for phones? If it is a high grade of plastic what's the problem?

Iphone 3g was plastic and the most durable out of the iphones. You could drop it and not worry about it shattering

----------

I also can't see this happening...

Yes because people apple wouldnt dare allow those low income folks to enjoy ios devices. They are not good enough.
 

phillipduran

macrumors 65816
Apr 30, 2008
1,055
607
I want to see lower cost service so the the iPhone can dominate in the business world. Too often I see Android chosen because it does enough to get by and the cost per line is cheaper.

----------

Why are people so against plastic casing for phones? If it is a high grade of plastic what's the problem?

Iphone 3g was plastic and the most durable out of the iphones. You could drop it and not worry about it shattering.

I saw several damaged iPhone 3g's at my work. Most developed cracks around the charging port.

4's and 5's have been very durable so far.
 

coltman75

macrumors regular
Jun 22, 2010
117
163
Plastic Macbook was offered 2 years ago.

Haha... We did.

The plastic MacBook was $1000. At the time, everyone was calling for apple to make a $500 or $600 netbook, because everyone here thought that netbooks were the future of computer makers, and that Apple needed to jump on that bandwagon because supposedly the average consumer wasn't going to spend the money on a non-netbook.
 

aliasfox

macrumors regular
Jun 16, 2004
160
78
Has everyone forgotten how hard it is for Apple to make the iPhone 5? All of the scratches and dents, and the extra labor that had to be hired for quality control? That not only caused supply issues for weeks, but likely contributed to a lower number of units sold as people looked towards other options.

Apple's most likely abandoning the iPhone 5 instead of moving it downmarket. They'll instead introduce the iPhone 5i:

- Same PCB as iPhone 5
- Maybe a TN screen instead of IPS
- Plastic enclosure (easier to produce)
- Colors
- $299 for 8GB in black (free on contract in the US)
- $299/black may even use an A5 instead of an A6, though 512 MB of RAM is really tight these days.
- $399 for 16GB in white ($99 on contract in the US)

They'll probably keep the original iPhone 5 tooling for the iPhone 5s and drop an A7 processor in there (Rogue graphics, maybe A15 cores or second generation Apple cores)
 
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StoneJack

macrumors 68020
Dec 19, 2009
2,435
1,530
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.

ipad mini?
 

StoneJack

macrumors 68020
Dec 19, 2009
2,435
1,530
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.

iPod shuffle, nano, mini, ipad mini, ibook, small iMacs, basic MBA - most affordable products
 

xofruitcake

macrumors 6502a
Mar 15, 2012
632
9
This is exactly the reason for the low-priced iPhone rumor. Too many here are U.S.-centric believing that a $0 iPhone 3 is the lowest price possible. But only people like us Americans can be so easily fooled into believing there is such a thing as a "free" phone or a "cheap" phone when we are then signing up for a 2-year fee tail for "service".

The world is different. And with some U.S. carriers looking to move away from the hardware subsidy model, maybe we're finally going to at least consider doing the same. It is almost always the best deal to pay up for the phone and get a cheaper cost of service than buy into the illusion of a "free" phone.

That said though, I still think the spin that a plastic back is going to make much of a difference in cost is silly. Aluminum is not an expensive metal and yes I'm also considering the milling, etc too. A genuine cheap (non-subsidized) iPhone is going to have to make some meaningful cuts to the guts too.

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. A premium, cheap phone is not a sensible combination of adjectives. Yes, under $299 means it probably kills the iPod touch. Or maybe this is the next-gen iPod Touch that includes the phone hardware? "But that would kill the iPhone." Cannibalize yourself and make money or let other cannibalize you and take (your) money.

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?

I think the plastic back just give the impression of the phone is of less quality so that the existing Iphone line can charge premium price. Apple intention, I think, is not the low end of the smartphone where no-name brand smartphone manufacturing dominate today with $100-150 smartphone. I think the focus is on mid-price smartphone where Samsung dominate and make most money.

Apple will rework Iphone internal to use the current mass market level components to put together the phone. Gross margin will be compressed. Currently Iphone has gross margin of 50-60%. The mid-price one probably will be in the price range of 400-450 (may be) with a gross margin of 30%ish. Apple doesn't need to Android phone $ to $ and be competitive. Ipad mini showed that Apple can charge premium price within a category and still have a block buster device. A $400ish Iphone will generate enough demand to worth Apple's worth both in term of earning and market share increase..


Old design may actually cost more money to manufacturing. e.g. the wifi chip use in 3GS may not be available in the quantity of 70-80mm unit a year kind of rate anymore and Apple may have to pay up for supplier to bring back old equipment to produce them. Just think of buying a ribbon for a dot matrix printer today. It is very old technology but it will cost an arm and a leg to get one because very few suppliers produce them now. A mid-priced Iphone may generate 70-80M additional unit sales a year and the initial quarter may see a demand of 30M-40M unit or more. Apple will have to figure out how to get enough processor and LCD screen. It is going to be one hell of launch if Apple can figure out how to build a nice mid-priced phone that still have decent gm.
 
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