Why a new low budget iPhone makes sense

Discussion in 'iPhone' started by decksnap, Jan 15, 2013.

  1. macrumors 68040

    decksnap

    Joined:
    Apr 11, 2003
    #1
    Just gonna bullet out some of the main points of why this move makes sense to me, the main thread is blown out of control. I think the plan would be to replace the 'low-end slot' when the 5s comes out, so the three main price points would be '5L'(new lowend), 5, and 5S. No old phones whatsoever.

    • The 4S is actually kind of expensive to make. They could improve margins on their cheapest phone, or target an attainable no-contract price.
    •*Standardize all models on the taller screen faster
    •*Standardize all models on lightning connector faster (dump the 30-pin)
    •*Pick and choose which internals to upgrade rather than sell a phone that's 2 years old through and through

    I think they've reached a unique crossroads where they see it advantageous to scrub out some older tech. Every year they sell a phone with the old screen size and connector is another year those specs linger on and have to be supported. At the end of the day you'll have all phones with the same screen and connector, varying degrees of speed/camera quality/etc, and a lower-quality shell option for the low end similar to how they used to handle the macbooks.

    I'd expect one major missing feature from the low-end model so that everyone can gripe that Apple is ripping them off.
     
  2. macrumors 6502a

    MarcBook

    Joined:
    Jul 13, 2008
    Location:
    Jersey, Channel Islands
    #2
    Makes sense to me, especially the bit about standardising Lightning. That's partly why I find it odd that the iPad 2 is still available (especially with the iPad mini introduced).

    Plus, I'm finding myself using my phone less and less and my iPad and Mac more and more, so I would appreciate there being a lower-end iPhone when I eventually come to replacing my 5.
     
  3. macrumors 68040

    Joined:
    Aug 8, 2008
    Location:
    Manhattan
    #3
    Two lines of iPhone are probably prudent in the environment of the free Android phone. I still want glass and metal, so I hope Apple continues to produce those.
     
  4. macrumors 6502a

    Joined:
    Apr 5, 2011
    #4
    Sure, all that makes sense for just letting the iOS ecosystem thrive SLIGHTLY more than it already is, but I still think Apple's R&D would be better spent on fixing Thunderbolt so it's actually useful.
     
  5. macrumors 603

    Menel

    Joined:
    Aug 4, 2011
    Location:
    ATL
    #5
    Education market push.

    Text book sized screen.

    Low cost, becoming standardized for IT personnel and purchasing departments. Think of it... like Mozilla's ESR (Extended Support Release) version.
     
  6. macrumors 68040

    Joined:
    Dec 18, 2012
    Location:
    Charlotte, NC
    #6
    If anything it's needed in order to slow down the adoption of android outside the US in poorer countries.
     
  7. macrumors 6502

    bonskovsky

    Joined:
    Dec 31, 2012
    #7
    I don't think anyone would buy a cheap iPhone. It's the silliest rumor I've ever heard.
     
  8. macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #8
    I would
     
  9. macrumors 6502

    bonskovsky

    Joined:
    Dec 31, 2012
    #9
    Even like a little prepay iPhone you could buy at Walmart? Why would anyone want a cheap phone?
     
  10. macrumors 68040

    Joined:
    Jul 2, 2012
    #10
    If it doesn't feel or function like an iPhone there is no point. If its cheap but lacking compared to similar priced phones, still no point. Apple won't do this as they can just sell the older phones as try do now. Why would they make a new iPhone 3GS or 4 specs phone?
     
  11. macrumors 68020

    FSMBP

    Joined:
    Jan 22, 2009
    #11
    How much cheaper can Apple make the iPhone exactly? The new iPod touch with the same screen and weaker internals is $300 (and that doesn't include cellular radio). Let's say Apple sells an iPhone based the Touch and adds a cellular radio for $350 or $400 (note: these prices aren't far off from iPhone 4 off-contract by the way). Those prices are still too high: Nokia and others sell smartphones off contract for $200-$275.

    I don't get how Apple can make such a cheap off-contract smartphone. They want the margins.
     
  12. macrumors 6502

    bonskovsky

    Joined:
    Dec 31, 2012
    #12
    What purpose would a cheap iPhone serve? Who would buy it? Lol.
     
  13. macrumors 603

    Menel

    Joined:
    Aug 4, 2011
    Location:
    ATL
    #13
    Apple's bottom line.

    The people who buy iPhone 4 and 4S now. The $0-99 price people.

    The 4/4S and 5 probably have some premium costs associated with manufacturing, even if older tech.
     
  14. macrumors 68020

    FSMBP

    Joined:
    Jan 22, 2009
    #14
    Yeah but those were once premium Apple products. So at the time, Apple invested all this money in equipment, machines, parts for its flagship iPhone; now, they they can continue selling years later (at a cheaper price) without having to reinvest in new equipment/machines/ parts. Plus this methods really helps to due economies of scale of such a product.

    Same thing with the iPhone 5, they already have all these custom machines; nothing would be cheaper than to continue selling the iPhone 5 for the next couple years. They would be able to truly milk their investment.
     
  15. macrumors 6502

    bonskovsky

    Joined:
    Dec 31, 2012
    #15
    What do you get when you try to make a cheaper iPhone 5, an iPhone 4S, what do you get after that? An iPhone 4, then a 3GS.

    What do you get after that? An iPod touch.
     
  16. macrumors 6502

    iHeartapple2

    Joined:
    Jun 29, 2010
    #16
    I don't see Apple going down this road. Apple is known for producing quality products with amazing design not cheap plastic Obama phones!
     
  17. macrumors 6502

    bonskovsky

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    Dec 31, 2012
  18. macrumors newbie

    Joined:
    Jan 15, 2013
    #18
    If Apple makes a cheap Iphone it will be their biggest mistake to date.
    This kind of thinking has not worked well for high end producers in the past. I remember when the Porsche 924 came about under the same circumstances of Sagging sales and a need for an affordable Porsche. This led them to make the 924 and later the 944.

    While the 924 and 944 ended up being great sellers for Porsche it forever removed the synonym that (Porsche = great Quality) and that hurt them badly over the long run.

    Apple is Top Dog right now for quality and design and everyone likes to pee on the Top Dog because it gets them noticed. Apple just needs to keep doing what it doing and don't listen to any of the comments like cheap phones and 4.5" screens and an open OS etc.

    All of these things are already in the Android domain and if Apple starts to let Android lead them by the nose then Apple might as well pack it up and get out of the phone market now because Google will beat them if this match gets down to who can make the cheapest phone.

    IMHO Apple needs an even higher end phone, like a $1200 Kick butt phone with 1000 limited serial numbers, a better screen, a Titanium body and some other extra wow features. That would be the phone that bears the Apple torch.
     
  19. macrumors 68000

    thewitt

    Joined:
    Sep 13, 2011
    #19
    Apple has NEVER gone after the budget price market for ANY of its products. No reason to believe they will now with a cheap iPhone.
     
  20. thread starter macrumors 68040

    decksnap

    Joined:
    Apr 11, 2003
    #20
    I'm not talking about a 'cheap' phone, just a phone that is cheaper than the 5. If they can produce a phone that is on par with the 4s spec wise but costs apple less to produce it, I think they'll seize the opportunity to standardize screens and connections across the line.They may pass the savings on to the consumer, they may keep it for themselves.

    Nobody really knows but Apple whether it saves them more money to continue to run a streamlined production line of the premium 4s or to set up a new lower cost derivation of the 5 production. The OP basically assumes the latter is the case.
     
  21. macrumors 6502a

    piatti

    Joined:
    Jun 9, 2010
    Location:
    USA
    #21
    Why not just get a dumb phone if you use iPad ?
     
  22. macrumors 6502a

    Joined:
    Apr 12, 2012
    Location:
    Canada
    #22
    Remember the iPod touch is 32GB for $300. This iPhone will probably start at 8 or 16GB.

    I still think this is strange though. You want a cheap iPhone? Get an old one. You want prepaid? Get an unlocked one.
     
  23. macrumors regular

    Joined:
    Jan 14, 2013
    #23
    Good promotion for technology

    i think it can better promote the Apple's product to the world, and speed up the new mobile technology, good news for us.
     
  24. macrumors 6502a

    MarcBook

    Joined:
    Jul 13, 2008
    Location:
    Jersey, Channel Islands
    #24
    I use the iPad quite a lot, but I still can't stand to any other phone but an iPhone. It's an essential part of my day-to-day life now.

    I love the iCloud integration, ease of use and huge capability that the iPhone has. I don't always have my iPad with me, but I do have my iPhone all the time.
     
  25. macrumors 6502a

    Paulywauly

    Joined:
    Sep 26, 2009
    Location:
    Durham, UK
    #25
    i agree, Apple will NEVER make a budget price product, its now they do business. However they did create thinner and cheaper Macbooks and iPads which sell very well. These products are still classed as "premium" end despite costing significantly less than Macbook Pros and Retina iPads.

    Look at a 16GB iPhone 5, in the Uk its £529 from Apple. That is ALOT of money for a phone. Then take a look at the new iPod Touch, a beautiful piece of kit. Thinner and lighter than an iPhone 5 with decent specs. If they released that iPod with less storage and full phone capability it would decimate the mid range handset market.
     

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