Apple Building Cheaper 8GB iPhone 4, End of September Launch alongside iPhone 5

[Rocketman]

If there is a low cost iPhone 4 with reduced memory (more than enough) and the same screen size but simply lower cost components, the retail price of the phone will drop, encouraging sales similar to iPhone 3GS (26 months after deployment). It will however in no way reduce the amount of the plan cost the carrier shares with Apple. The profits to Apple to make a viable low cost unit that stays within their hardware margin targets (30%+), is extraordinary. Airtime plans range between $40 and $100 a month over 2 years postpaid or $960-2400 of which Apple captures just under 30%. That allows them to price the unit below "target price". If the unit did not force an unnecessary voice plan, but instead relied on VoIP and had a data only plan as the unit is fully capable of, it might have a $15-$40 a month plan, much less revenue sharing, and a retail price triple the current level.

Someone has to pay for an entire computer in your hand with a large back end network. Currently it is voice plan users. Try to buy an iPhone without one. Good luck.

Rocketman

 

[pacmacman]

Too many of you are making too many assumptions what a larger screen will mean. The assumption that Apple would only bump up the screen size without touching resolution seems misplaced to me.

While I appreciate what some of you are saying regarding leaving the screen as is, I can easily see advantages to a 4" screen (I feel 4" is the sweet spot, personally). Being that it's an iPhone, a 4" screen makes certain activities that much better. Typing, viewing movies, reading websites is already a pleasure on an iPhone. A 4" screen makes those things that much better.

I'm firmly in the camp that hopes they're going with a bigger screen.

 

[globality]

My wife. She has an iPhone 8GB 3G right now and only uses about a fourth the memory. The only reason we're looking to upgrade is to move to Verizon plus to get a faster processor. I'm thinking we'll get the iPhone 4S for my wife and I'll get the iPhone 5 for myself.

My situation is exactly the same. Also my wife only uses less than 50MB data each month. So I hope shared data plan can come out also.

 

[mdelvecchio]

Not to mention the control issues on your data. I don't want my data in someone else's hands.

it already is.

 

[theperipheral]

I have no idea why Apple would stick with the same form factor. Although the phone still sells like crazy, Apple should understand that people constantly want new and different things (not to mention Apple lost a lot of sales originally on the iP4 because of the whole "antennagate" myth...although it was dumb, people associate that style of iPhone with that problem now).

There are 2 types of people.

1. People who want an iPhone but don't care about looks as much as features.

2. People who care about looks AND features.

Why not capitalize on everyone at once? If they take the iPhone 4 and put a bigger screen on it, it's still gonna feel like the iPhone 4 (although it LOOKS more beautiful, it definitely doesn't FEEL as nice as the 3G/3GS) and a lot of those people out there who are very much wanting a new design will not buy because of it. If they change the whole design, you capture all those people who want the iPhone for the features, as well as all those people who want a new design...HIGHER SALES.

It just makes more sense to change the design every year. If Steve doesn't see that, then maybe he should let me run the company.

 

[tasset]

If there is a low cost iPhone 4 with reduced memory (more than enough) and the same screen size but simply lower cost components, the retail price of the phone will drop, encouraging sales similar to iPhone 3GS (26 months after deployment). It will however in no way reduce the amount of the plan cost the carrier shares with Apple. The profits to Apple to make a viable low cost unit that stays within their hardware margin targets (30%+), is extraordinary. Airtime plans range between $40 and $100 a month over 2 years postpaid or $960-2400 of which Apple captures just under 30%. That allows them to price the unit below "target price". If the unit did not force an unnecessary voice plan, but instead relied on VoIP and had a data only plan as the unit is fully capable of, it might have a $15-$40 a month plan, much less revenue sharing, and a retail price triple the current level.

Someone has to pay for an entire computer in your hand with a large back end network. Currently it is voice plan users. Try to buy an iPhone without one. Good luck.

Rocketman

Let me frame the response with a question:
What uses more data, an iPhone or an iPad? Well clearly it depends on use but they more or less use the same. However AT&T/Verizon are more than happy to sell a data only iPad plan for $20-$30 and we the customer can buy an unlocked/unsubsidized iPad for $500+. There is no voice subsidy/revenue sharing to pay for the backend network. There is no contract.
So tell me, why can I not bring an iPhone (or any smartphone for that matter) to the network and sign up for a data only package? It's a fictitious barrier. And I know it is because I already use a Nexus S with an iPad data plan and only pay for the 2gb data at $25!

 

[mdelvecchio]

Hey look, if you want to underutilize your phone no one is stopping you. I even said that there are people that will gladly save $100 on a $1400+ contract. My point is that I don't understand why. If all you want is to put music on your phone Walmart has inexpensive Android phones w/ $45/mo PayGo plan w/ unlimited text, talk and data on Verizon's network.

do they run iOS apps? er, no. then...why suggest it? its about the ecosystem -- apps.

fact -- smartphones are placing feature phones. fact -- not everybody needs all the capabilities of a smartphone. my dad and uncle only use a few apps, and load a few tunes, and take a few pics. they do not shoot HD movies, they do not sync movies.

not everybody is you. crazy, huh?

 

[allmanbrother]

Oh I hate this dumbing down and cheapening of the iphone!...what next the $25 iphone for poor people in Africa to find out where the next grain drop will be or where's best to hide from murderous Hutu rebels?

I want exclusivity and the "wow I'm jealous factor".....not a "oh everyone has an iphone" thing.

~sigh, searches for Grain App~

If this comment is serious:

 

[mdelvecchio]

I have just 30 GB of music, however I must listen to music for about 5 hours a day, and I'm betting my left nut that it would cost me a small fortune to get enough data for my needs.

Basically it would probably be cheaper in the long run, to simply get a phone with more storage.

guess you havent been paying attention. apple's icloud music offering is not a streaming service -- it merely syncs to your device's available storage. some see this as a disadvantage, some see it as an advantage. the market will surely support both camps.

 

[HobeSoundDarryl]

Let me frame the response with a question:
What uses more data, an iPhone or an iPad? Well clearly it depends on use but they more or less use the same. However AT&T/Verizon are more than happy to sell a data only iPad plan for $20-$30 and we the customer can buy an unlocked/unsubsidized iPad for $500+. There is no voice subsidy/revenue sharing to pay for the backend network. There is no contract.
So tell me, why can I not bring an iPhone (or any smartphone for that matter) to the network and sign up for a data only package? It's a fictitious barrier. And I know it is because I already use a Nexus S with an iPad data plan and only pay for the 2gb data at $25!

I've been hoping for THAT (an iPhone device) with the iPad data-only plans for some time. Pair a cheap data plan with one of the VOIP apps and you get massive savings for everyone interested.

However, it's those massive savings that kill the concept. AT&T and Verizon have no interest in turning $70+ plans into $25 plans (when you have a duopoly you don't have to cut margins to try to make it up in volume- the volume will buy anyway). Too many people go that way (like you've gone) and the $25 plan will go away and/or the caps will get so tight that $25 won't be able to suffice for even minor texting & voip use.

Any solution like that fixes the "teenager" problem. Teenagers seem to want 3G for texting more than anything else. A $25 iPad-like plan tied to a cheap 3G-capable iPhone would be THE solution for just about all teenagers everywhere. AT&T and Verizon love those fat profits "as is" too much.

But I do love the dream.

 

[mdelvecchio]

I have no idea why Apple would stick with the same form factor.

because as engineers and sellers of the leading smartphone in the world, they know what theyre doing more than some people on a forum? maybe?

(not to mention Apple lost a lot of sales originally on the iP4 because of the whole "antennagate" myth...although it was dumb, people associate that style of iPhone with that problem now).

not really. the iphone4 is the top selling smartphone in the world, and has sold more for apple than any other version. nobody even mentions the myth any longer and i think its fine.

 

[KnightWRX]

Not to mention the control issues on your data. I don't want my data in someone else's hands.

it already is.

Nope, it isn't. Not the data I don't want to be at least.

 

[Nostromo]

The real cost of an iPhone is the data plan.

Why a low cost iPhone with minimal storage and (probably) a sub-par screen?

 

[FearNo1]

Correction: they may want it but they don't "need" it...

There are many people that really only need an 8GB iPhone.

What's more important is getting the price of the phone down to $99 for an iPhone 4 and hopefully we'll see shared data plans begin to be rolled out.

 

[PittAir]

If there is a low cost iPhone 4 with reduced memory (more than enough) and the same screen size but simply lower cost components, the retail price of the phone will drop, encouraging sales similar to iPhone 3GS (26 months after deployment). It will however in no way reduce the amount of the plan cost the carrier shares with Apple. The profits to Apple to make a viable low cost unit that stays within their hardware margin targets (30%+), is extraordinary. Airtime plans range between $40 and $100 a month over 2 years postpaid or $960-2400 of which Apple captures just under 30%. That allows them to price the unit below "target price". If the unit did not force an unnecessary voice plan, but instead relied on VoIP and had a data only plan as the unit is fully capable of, it might have a $15-$40 a month plan, much less revenue sharing, and a retail price triple the current level.

Someone has to pay for an entire computer in your hand with a large back end network. Currently it is voice plan users. Try to buy an iPhone without one. Good luck.

Rocketman

The issue is lower hardware margins on a larger sales volume. Especially if you decide you want to purchase a piece of the backend to control the user experience?

Does Apple want to do that? My 2 cents (should it be yen at this point?) says that (1) they have a ton of cash, (2) the "magical" user experience is their biggest selling point, (3) the area of telecom user experience they don't control is the carrier, so (4) why not disrupt that space?

Jobs already turned the PC space on its head twice: once with the graphical UI 25 years ago, and then with the tablet 2 years ago.

He also turned the media space on its head with the iPod and iTunes.

Don't you think he and Apple have the telecoms in their sights? They want to change the world, and these are the last dinosaurs left...

 

[KnightWRX]

The real cost of an iPhone is the data plan.

Why a low cost iPhone with minimal storage and (probably) a sub-par screen?

The same reason they are still selling the 3GS. Some of you do realise this is not a bold new strategy right ? This is mostly the same thing they have been doing for 2 years...

 

[BowTheMan89]

Bigger screen

It really could use a screen size boost, with iOS5 new alerts and what seems like more crap on the screen in general it could get really busy without a larger screen..I know a lot of people hate on the Droid brick phones with their square bodies and massive screens but iPhones (in my opinon) are beginning to fall behind in the "size matters" market

 

[KnightWRX]

It really could use a screen size boost, with iOS5 new alerts and what seems like more crap on the screen in general it could get really busy without a larger screen..I know a lot of people hate on the Droid brick phones with their square bodies and massive screens but iPhones (in my opinon) are beginning to fall behind in the "size matters" market

A larger screen won't help you, it's more resolution/pixels you want, not more inches.

 

[BowTheMan89]

A larger screen won't help you, it's more resolution/pixels you want, not more inches.

Then i guess im confused or my post is misleading. I want more room, more space for my fingers, less clutter on my screen, especially with the planned updates of iOS5, not a clearer picture.

 

[Liquinn]

Then i guess im confused or my post is misleading. I want more room, more space for my fingers, less clutter on my screen, especially with the planned updates of iOS5, not a clearer picture.

Link me to the Apple UK iPhone 3GS page? I can't find it.

 

[ncbill]

So, will it be this time next year before LTE is on the iPhone?

 

[alent1234]

The real cost of an iPhone is the data plan.

Why a low cost iPhone with minimal storage and (probably) a sub-par screen?

because most of us are on family plans and the bill will come every month anyway. no reason to spend $300 on something when i just need a $50 smart phone

 

[KnightWRX]

Link me to the Apple UK iPhone 3GS page? I can't find it.

I already replied to you :

https://forums.macrumors.com/posts/13228768/

You can't have searched very hard :


http://store.apple.com/uk/browse/home/shop_iphone/family/iphone?mco=MTAyNTQzMjI

http://store.apple.com/uk/configure/MC637B/A?select=select&product=MC637B/A&mco=MTgxNTgyMjk

 

[bushido]

And thank god for that. I want it to remain pocketable and easy to carry. These 4"+ displays are truly unruly and really don't add much to the experience. In fact, I'd say anything they DO add is taken away by the extra battery power they suck.

who honestly expects much from a smartphone battery anymore tho, u have to charge it every night either way

 

[tasset]

The issue is lower hardware margins on a larger sales volume. Especially if you decide you want to purchase a piece of the backend to control the user experience?

Does Apple want to do that? My 2 cents (should it be yen at this point?) says that (1) they have a ton of cash, (2) the "magical" user experience is their biggest selling point, (3) the area of telecom user experience they don't control is the carrier, so (4) why not disrupt that space?

Jobs already turned the PC space on its head twice: once with the graphical UI 25 years ago, and then with the tablet 2 years ago.

He also turned the media space on its head with the iPod and iTunes.

Don't you think he and Apple have the telecoms in their sights? They want to change the world, and these are the last dinosaurs left...

That would be a dream and it would fit Apple's M.O. to have end-to-end control and therefore revenue. Would AT&T/Verizon go nuts and threaten to stop carrying iPhones? Yeah right. After they already have 20 million iPhone users on contract who would threaten to leave if they couldn't continue to do so? They would be backed into a corner.
It might work in the U.S. where two carriers need disruption (yay competition.. /s), but the rest of the world not even Apple has the capital to invest in a network in all countries. But they wouldn't need to because, unlike the U.S., the regulations there already have created competitive networks.
Which brings me to the next issue: U.S. regulations and lawsuits. Can you imagine all the wolves suing Apple because an "emergency" call was not connected? I don't think they want any part of that. Better for them to hope consumers demand better regulations and the carriers are forced to assume their roles as bit pumps.

edit: which is why, as much as I hate it, we have such small incremental changes and nothing revolutionary all at once. A little Facetime here, a little iMessage there.. And voila you have the frog (AT&T) in the simmering pot.