Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

locust76

macrumors 6502a
Jan 23, 2009
688
90
This phone is meant to tap into the billions of people outside of the US ... who can't afford to shell out $600+ for a phone. Apple would be stupid not to go after that market before Android, Blackberry, etc. get a stronghold on it.

Before Android gets a stronghold on the market? I'd say it's far too late for that... Apple getting into the budget smartphone market is like Microsoft getting into the tablet business: far too late to the party with nothing but an agonizing, uphill fight.
 

macjunkie33

macrumors member
Jan 8, 2009
86
0
OH
Case

Maybe Apple is on to something. An iphone with "shells" coming in numerous colors each sold for around 25-30$. Think about how many people go into the apple store, but a phone, and then immediately buy a third party case. The bright colors could also align with iOS7 and it's introduction of colorful contrast icons.

I have a plastic case on my iPhone 5 that I bought the day the phone came out. It's starting to wear out after a few months but if you could buy an Apple cover in a variety of colors you'd be able to switch things up as often as you'd like going from white to black, to pink, to neon orange if you wanted.

I hope one of the features is a super water resistant design.
 

Giuly

macrumors 68040
Upon thinking about the prototype for few days, my take is:

  • Apple is going to sell a budget phone and had some prototypes
  • This one on the photo is not a real iphone and maybe not even a prototype
  • Its an advertisement campaign for the no-name android knock-off which as the company assures looks like the budget phone. But it is too convenient that they have already started production of Android clone.
  • Therefore, the primary goal - an attempt to advertise the Android clone. The attempt is masked under the claim that there is some Apple iphone on which design presumably the clone is based on. However, this is what the company claims and without any proof.

Therefore, there is high probability that the bugdet iPhone when released will look completely different.

Except they won't sell a lot if it doesn't end up looking like an iPhone. They've also copied the colors wrong.
 
Last edited:

Fairthrope

macrumors member
Oct 4, 2012
75
0
Bangkok, Thailand
Bravo to Apple for making a cheaper phone still look high quality and desirable.

The big question is, how big are the margins and will how much will it eat in to iPhone 5 / 5S sales.

It will cannibalize 5/5S quite a bit. BUT, what you can do when the recession is still going on, your new customers are poorer and there aren't enough old ones to keep the sales growing.

I think Apple decided to take their lump this time. Take less profit now for more customers down the road.

And how about we have this iPhone Mini, and bring the curtain down on iPod Touch while we are at it?

Let it carry on for a while in the West, but the line has been neglected in Asia Pacific for so long since iPhone came along.

Resurrecting iPod Touch in Asia after 4 years of negligence with 7" Android tablets already swamped the price bracket, is throwing good money after bad. Let Touch ride off to the sunset and focus on iPhone Mini and iPad line instead.
 

falconeight

Guest
Apr 6, 2010
1,866
2
The problem is that most part of the people in China, India, Southeast Asia and South America don't have iPod Touches to begin with.

Here's a study from Nokia about the User Experience in Latin America, there's also a study about the state of the broadband internet in Brazil which doesn't look better, either. It's too expensive to download 15MB apps via mobile internet, and fixed internet is mainly 56k. South America is mostly a Firefox OS resp. Nokia Asha market (<$100 off-contract), and so is Southeast Asia. "Free on a $99/mo contract" with a monthly wage of around $400 isn't happening, even $399 off-contract will have a hard time there.

If you look at the Play Store numbers, China, India and Russia dominate free apps, while Japan, South Korea and the USA account for 70% of the paid apps. Japan can be excluded here, because NTT DoCoMo prefers to sell Sony Xperias for one reason or another. It's unlikely that you get a foot into the South Korean door, either, unless you send troops. China, India and Russia are candidates for this iPhone, along with every cat and dog in 'murica, Europe, Canada and Australia.

Of all those markets, I see the Europe doing best, for the fact that the iPhone does well in countries where contracts are prevalent (the UK, Germany are among the Top 5 of the paid category on the App Store), but not so much in the rest of Europe where mobile means prepaid - that's mid-range Android and Windows Phone territory, as iPhone 5 starts at $875 off-contract in Europe.

Why would you drop nearly $900 on a 16GB iPhone when you can have a 16GB iPad plus a Nokia Lumia 920 for the same amount of money? $499/€399 or less for this iPhone on the other hand is a completely different figure, and that would still be more expensive than the Nokia flagship phone while being intended to compete for the Lumia 720/820 (and whatever their Android equivalents are) market, which are $320/€250.

The plastic iPhone will not cost $900 and thats the beauty of the phone. If you don't think Russians, Indians, and South Americans don't want iPhones your insane. The black market in all those countries demand a premium on anything apple. Its a status symbol more than any other product. This phone is going to kill the market like no other Apple product that we have ever seen. There are about 30 teens between my 7 brothers and sisters. I would say 90% of them will have this phone. Just because our family is knee deep in the ecosystem, iMessage, iPhoto, and iTunes.
 

Tunster

macrumors 6502
Nov 28, 2009
422
182
It will cannibalize 5/5S quite a bit. BUT, what you can do when the recession is still going on, your new customers are poorer and there aren't enough old ones to keep the sales growing.

I think Apple decided to take their lump this time. Take less profit now for more customers down the road.

And how about we have this iPhone Mini, and bring the curtain down on iPod Touch while we are at it?
I disagree. There will always be people that are able to afford the top range iPhone on continuous contract upgrades. Where Apple can make gains are people are who do not want to tie themselves into long/expensive iPhone contracts and can look at getting the cheaper iPhone on SIM Free or just much more subsidised because the mobile co's won't lose out.

Let it carry on for a while in the West, but the line has been neglected in Asia Pacific for so long since iPhone came along.

Resurrecting iPod Touch in Asia after 4 years of negligence with 7" Android tablets already swamped the price bracket, is throwing good money after bad. Let Touch ride off to the sunset and focus on iPhone Mini and iPad line instead.
This is the iPhone Mini. Apple would not want to compromise the user experience by releasing a smaller than 3.5" phone.

For me, this is the best thing to happen. I dislike the iPhone 5/5S design a lot and wouldn't mind a cheaper iPhone that looks like the iPod Touch. It's a perfect design to sit as a phone for people economising or new to mobile contracts (young adults).

IMHO, this design looks better than the 5/5S or should of been the 5/5S model.
 

Giuly

macrumors 68040
The plastic iPhone will not cost $900 and thats the beauty of the phone. If you don't think Russians, Indians, and South Americans don't want iPhones your insane. The black market in all those countries demand a premium on anything apple. Its a status symbol more than any other product. This phone is going to kill the market like no other Apple product that we have ever seen. There are about 30 teens between my 7 brothers and sisters. I would say 90% of them will have this phone. Just because our family is knee deep in the ecosystem, iMessage, iPhoto, and iTunes.

The 16GB iPhone 5 off-contract costs €679, which is $873.47. "Low-cost iPhone" kinda implies that it costs less than that, and my guess was $499/€399 for the base model.
https://gsmaintelligence.com/analysis/2012/06/russia-hits-mobile-saturation-point/339/ said:
Like in Italy [read: France, Spain, Portugal, Greece, Poland, etc.], Russian operators do not subsidise devices, which means the market remains predominantly prepaid (85 percent) with no contract lifecycles and relatively high churn.

Again: Russia, China, India, non-contract Europe, USA, Canada, Australia, with emphasis on non-contract Europe where people would own iPhones already if they were subsidized but very few people are willing to pay the outrageous price of something between $873.47 and $1,156.47 for an iPhone 5.
 
Last edited:

falconeight

Guest
Apr 6, 2010
1,866
2
The 16GB iPhone 5 off-contract costs €679, which is $873.47. "Low-cost iPhone" kinda implies that it costs less than that, and my guess was $499/€399 for the base model.


Again: Russia, China, India, non-contract Europe, USA, Canada, Australia, with emphasis on non-contract Europe where people would own iPhones already if they were subsidized but very few people are ready to pay between $873.47 and $1,156.47 for an iPhone 5.

To pick up the example above, Italy recently started issuing credit cards in The American Way™, it would be smart to tap into that with the App Store instead of letting Google run with that where nobody pays for Apps anyways.

That is a huge difference. 873 compared to 499 is an insane difference.
 

Dirtfarmer

macrumors regular
Jan 18, 2012
210
274
If you haven't already established a short position in AAPL, it appears that there is still a long way left for it to fall.

Steve would have spit on and then fired and then spit on again the person who suggested taking Apple in the direction of cheap-looking low-rent also-ran products like this.

They need to put another maniac in charge, and chain the accountants back to their adding machines where they belong.
 

falconeight

Guest
Apr 6, 2010
1,866
2
If you haven't already established a short position in AAPL, it appears that there is still a long way left for it to fall.

Steve would have spit on and then fired and then spit on again the person who suggested taking Apple in the direction of cheap-looking low-rent also-ran products like this.

They need to put another maniac in charge, and chain the accountants back to their adding machines where they belong.

Ipad mini has sold like crazy and it was cheap. I would like to know what market research you are referring to?
 

Giuly

macrumors 68040
That is a huge difference. 873 compared to 499 is an insane difference.
In the US it's $679 vs $499. In Europe however €399 is the place to be as the €300-350 class is the competition. The street price of this iPhone should be able to hit €399 at an MSRP of €499, though.
If it's not going to be a roundhouse kick into the perimeter of Google and Microsoft strong suits, all it ends up doing is competing with the Galaxy S4, HTC One and the Sony Xperia Z at €500, and that's what the iPhone 5 with a street price of €585 is supposed to do in the first place.

Let's not forget that this is an iPod Touch with cellular technology.
The surcharge on an iPad for cellular is $130 and a 16GB iPod Touch is $229. $499 carries a huge premium for the benefit of an integrated speaker already.
 
Last edited:

Mr. RPG

macrumors 6502a
Sep 21, 2012
566
0
'Proper sized' is really just an opinion. Many folks are just fine with the size Apple is producing. If you aren't then perhaps it's time for you to buy something else that is your proper size

----------



You presume that the 4 or even 4s would still be for sale when the next iPhone releases.

No, the 4S and 5 will be.

They've been doing this since the original iPhone. Look up these things man. Damn.
 

falconeight

Guest
Apr 6, 2010
1,866
2
In the US it's $679 vs $499. In Europe however €399 is the place to be as the €300-350 class is the competition. The street price of this iPhone should be able to hit €399 at an MSRP of €499, though.
If it's not going to be a roundhouse kick into the perimeter of Google and Microsoft strong suits, all it ends up doing is competing with the Galaxy S4, HTC One and the Sony Xperia Z at €500, and that's what the iPhone 5 with a street price of €585 is supposed to do in the first place.

Let's not forget that this is an iPod Touch with cellular technology.
The surcharge on an iPad for cellular is $130 and a 16GB iPod Touch is $229. $499 carries a huge premium for the benefit of an integrated speaker already.

It doesn't have to compete with WP8 or android. It just has to be new and cheaper than the current model. Calling the iPhone a iPod touch is like calling an android a good user experience.
 

SILen(e

macrumors regular
Oct 6, 2012
243
19
In the US it's $679 vs $499. In Europe however €399 is the place to be as the €300-350 class is the competition. The street price of this iPhone should be able to hit €399 at an MSRP of €499, though.

Apple is already selling the iPhone 4 for 399€ and normally it would be replaced by the iPhone 4S at rhe same price this fall.

Instead Apple will drop the 4S (No Lightning/4" screen) and sell this one instead, most likely at the same price.
 

falconeight

Guest
Apr 6, 2010
1,866
2
Apple is already selling the iPhone 4 for 399€ and normally it would be replaced by the iPhone 4S at rhe same price this fall.

Instead Apple will drop the 4S (No Lightning/4" screen) and sell this one instead, most likely at the same price.

I think you are correct, especially since the iPhone 4/4s is expensive to build.
 

notabadname

macrumors 68000
Jan 4, 2010
1,568
736
Detroit Suburbs
They used to make their products so good people would pay the premiums to get into the eco system after a few hours playing with the product at an Apple store.

I guess when their flagship phone is the same experience as it was in 2010 (plus siri and a 1/2" longer screen) and looking really old-fashioned next to the competition, they need to do something to keep people buying.

Welcome to Timmy's Apple.

Pretty naive if you don't think the current product line was initiated by Jobs. Numerous sources point to at least a 2 year lead. This is Steve's iPhone 5 far more than it was "Timmy's". When the iPhone came out, it was the only game in town. Not the case anymore. The market is flooded with cheap options. And just like Jobs had white plastic MacBooks, and white plastic minis, it is perfectly in-line with Apple's past product line to have a low-end phone, in plastic, as an entry point. Sorry if the facts are inconvenient to your quips regarding "Timmy".
 

beaniemyman

macrumors 6502
May 19, 2013
301
0
So, can you please show us obviously ignorant people where it says that:
  • The S4 is unsuccessful?
  • This is due to the fact that it has a plastic shell?
  • The iPhone is due to fail also because of a plastic shell?
  • Samsung´s share price is determined to such a large extent by S4 sales (what about other activities that they are in?)
  • And where did I say that it is great?

check again, i didn't say s4 is unsuccessful, it didn't meet analysts' expectations, samsung has reduced component inventory order for the s4, at the same time their share hits a nine month low, coincidence? i don't think so.
talking about the plastic body, go read reviews, almost all of the reviewers complained about the plastic body, many people are choosing the htc one over s4 because of its metal body, you know why s4 is still selling so well? it's because of brand loyalty and heavy marketing.
another thing to note is that no one says that the plastic iphone will be sold for a cheaper price, another important ingredient of the unsuccessful recipe.
 

Dirtfarmer

macrumors regular
Jan 18, 2012
210
274
Ipad mini has sold like crazy and it was cheap. I would like to know what market research you are referring to?
Steve famously hated and didn't use focus groups or market research.

He once quoted Henry Ford -- at a keynote or a shareholder's meeting I think: "If I had asked people what they wanted, they would have said faster horses."

He could also have made cheesy running shoes or a $5.00 hand lotion dispenser and they would have sold like crazy.

But that's what his vision for Apple was. Do you think that this is a picture of an amazing, market-redefining, incredible product?

techdy_plastic_iphone_back.jpg


Me neither.

Steve didn't want his brand to waste time marketing cheap also-rans to compete into existing markets -- even if they could make a tonne of cash at it. (Which the iPad Mini was, by the way.)

This behaviour amounts to milking the company's brand for some quick bucks at the expense of long-term brand equity.

Once the world is awash in cheesy plastic iPhones, and you can't tell an Apple product from a ZTE product from a Huawei product from a ZTech product, you will not be telling the forums what a brilliant manager Tim "Timid" Cook is.
 
Last edited:

falconeight

Guest
Apr 6, 2010
1,866
2
Steve famously hated and didn't use focus groups or market research.

He once quoted Henry Ford -- at a keynote or a shareholder's meeting I think: "If I had asked people what they wanted, they would have said faster horses."

He could also have made cheesy running shoes or a $5.00 hand lotion dispenser and they would have sold like crazy.

But that's what his vision for Apple was. Do you think that this is a picture of an amazing, market-redefining, incredible product?

Image

Me neither.

Steve didn't want his brand to waste time marketing cheap also-rans to compete into existing markets -- even if they could make a tonne of cash at it. (Which the iPad Mini was, by the way.)

This behaviour amounts to milking the company's brand for some quick bucks at the expense of long-term brand equity.

Once the world is awash in cheesy plastic iPhones, and you can't tell an Apple product from a ZTE product from a Huawei product from a ZTech product, you will not be telling the forums what a brilliant manager Tim "Timid" Cook is.

The phone will be plastic but it won't be cheap. It will carry iOS, apple warranty, and the styling is spot on. Apple has made plastic and cheap. MacBooks, Mac mini, iPad mini, and the colored iMACs were $799. There is a difference between cheaply made and a good product made to be cheaper. It will be like a BMW 3 series compared to a BMW 5 series. Or the Macbook retina compared to the MBA.
 

gaximus

macrumors 68020
Oct 11, 2011
2,241
4,375
Sorry, but you are wrong.

IPhone_3G_White.jpg
Image

Also, the black iPhone came in a black box and the white one in a white box.

Iphone+3g+(2).jpg
Image

Your right, I don't know why I thought that. I even google imaged some before I commented on that post, must of been an after market thing. Sorry
 

pragmatous

macrumors 65816
May 23, 2012
1,378
99
Those are not budget devices tho?

http://www.digitaltrends.com/mobile/apple-executive-schiller-denies-reports-of-a-cheap-iphone/

You're going by "analysts" who are 99% of the time wrong. I'm going by the words of the VP of Apple "Apple executive Schiller denies reports of a ‘cheap’ iPhone"

Read more: http://www.digitaltrends.com/mobile...nies-reports-of-a-cheap-iphone/#ixzz2YWCBnyl2
Follow us: @digitaltrends on Twitter | digitaltrendsftw on Facebook

Show me the receipts! When did Apple state a million times they will never release a budget device?

iPod mini, iPod Nano, iPad mini, heck, even iPod touch is a scaled down iPhone.


----------

It's not cheap tho. The nexus 7 is 200 dollars. There are android tablets for 99 dollars. The ipad mini is $329. It's more expensive because it has the luxuriousness to it. I know lots of people that want the ipad mini but settle with the cheaply made 99 dollar tablet. They are usually only semi-happy with it. I don't know anyone not happy with their Apple products and that's the point. Apple is about the end users experience.

Ipad mini has sold like crazy and it was cheap. I would like to know what market research you are referring to?
 

charlituna

macrumors G3
Jun 11, 2008
9,636
816
Los Angeles, CA
No, the 4S and 5 will be.

They've been doing this since the original iPhone. Look up these things man. Damn.

1. Not a man
2. No they haven't been doing it since the original iPhone. They only started at with the 3GS when the 4 came out
3. Still doesn't mean they will definitely be keeping any of the older models. This plastic backed iPhone could be meant to replace all those others.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.