Apple Launching Larger, Low-Cost iPhone for Emerging Markets Late This Year?

[Limboistik]

There's a very big reason would do this :

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Look at that chart. iPad Mini, a new "smaller/cheaper/different" iPhone, Apple is starting to need these things. The problem is that iOS devices are now over 70% of Apple's revenue. The "one model" strategy works as long as the market is showing good growth numbers, but alas, markets don't just grow indefinitely, they reach a point of maturity. The smartphone is probably getting there pretty soon and competition is getting vicious. A market with close to no growth and vicious competition will require Apple to diversify its offering in order to keep up its market share.

To keep showing growth to please shareholders, Apple basically has to do this before its too late. The iPad Mini was a similar move, open the doors to new growth possibilities for Apple, at the cost of some cross-model canabilization. Best to steal 3 million of your own sales and 2 from the competition than simply losing those 2 million sales, especially when your revenues are so dependant on the segment.

The only other possibility for Apple at this point to keep their growth rate would be to launch into yet another segment and be successful (TVs could be a possibility here, so could wearable computing like glasses/watches). Apple has reached maturity in many of its segments already (online services where it struggles with lackluster offerings/the traditionnal computers that is a very mature market with very small growth if not contractions from time to time) and the iPod is showing signs of dying off as a relevant revenue generator (and you can forget about growth in the segment if the trends of the last few years remain constant).

Totally agree. This is not about what SJ would do or Cook would do. What they've always done is skate to where the puck is going to be, not where it currently is.
If that means Apple needs to diversity and target emerging markets, then so be it. It's not necessarily a bad thing, and doesn't mean it will take away from their focus of creating high quality products.
There are bigger goals and underlying market strategies at play here, and making modern technology available to the masses in developing countries is certain a step in the right direction.
Or a more local example, do you really think AT&T cares to expand their network and increase their capacity if there is nothing to push their network's limits? They would be much happier sitting idling milking you for monthly fees than to pour in billions developing a faster network.
The more common the spread of information is, the more motivation to innovate and reach new milestones, whether it is in society, in technology, or otherwise.

IMO.

 

[Jimbo47]

Everybody who says it's not going to happen said the same thing about the iPhone 5's 4" screen, and the iPad Mini. Look where we are now..

 

[SeaFox]

What has screen size got to do with class? Lol.
You're just saying that because Apple don't give you a choice.

Maybe it's like people buying HUGE cheap-brand HDTVs or driving a large pickup truck to make up for... other deficiencies. While a "higher class" person would pick the (smaller) but more expensive luxury car, iPhone, etc instead.

 

[coco2013]

good news

does it is really?
I like iphone, and we all know that iphone price is much higher than other brand phones, if that news is correct, iphone will be more popular in hands.

[url=http://cdn.macrumors.com/im/macrumorsthreadlogodarkd.png]Image[/url]


Digitimes reports that Apple is planning to launch a new low-cost iPhone during the second half of this year, targeting emerging markets such as China with a new design and larger display.

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5.5-inch Samsung Galaxy Note II vs. iPhone 5 (Source: phoneArena.com)​

Rumors of a low-cost iPhone for such markets have circulated for years, although they have generally focused on a smaller "iPhone nano".

Just last week, analyst Brian White claimed that Apple could be looking to launch multiple sizes of the next iPhone to address different markets. We did, however, note some of the obstacles to further increasing the iPhone's display size given that Apple has just gone through such a transition with the iPhone 5.

Article Link: Apple Launching Larger, Low-Cost iPhone for Emerging Markets Late This Year?

 

[Philscbx]

Make cheap phone with a huge display, to appeal to lower class people. Sounds like Android in USA!

Well, every time I visit local spot for chow - I have to ask everytime - what the heck is that huge screen phone.
I would have no doubt a new size model will appear between the next new iPad Mini & iPhone5.

 

[MonkeySee....]

Famous last words.

Thousands of naysayers were ready to bet the farm that Apple would not cave into pressure & build an iPad mini.

Its a new era at Apple.

Yeah, but Apple don't make "los cost" anything.

 

[maxosx]

Yeah, but Apple don't make "los cost" anything.

That was then, this is now. Welcome to change.

 

[MonkeySee....]

That was then, this is now. Welcome to change.

Really? The iPad mini came out more expensive than all the other tablets in it size. They could have dropped the price and wiped out the competition with ease but they didn't as they don't release "low cost" stuff.

Anyway. Its all rumours so we'll have to wait and see

 

[Philscbx]

Famous last words.

Thousands of naysayers were ready to bet the farm that Apple would not cave into pressure & build an iPad mini.

Its a new era at Apple.

And next - The New Mini Retina already in the works.

 

[Elijen]

Nope, too much pain for the developers

As it's lowcost I bet the resolution and aspect ratio of the screen will be the same ... no pain for developers.

 

[KnightWRX]

That was then, this is now. Welcome to change.

Uh ? Apple has been making "low cost" since forever to expand its market presence in segments that become near saturation point. 999$ MacBooks, then MacBook Airs, iPod Minis, Nanos, Shuffle even for that under 100$ PMP. The Mac Mini for a presence in the 500-1000$ desktop market.

The iPad Mini...

What Apple doesn't do is razor thin, cut throat margins. When Apple enters a low cost segment of a market, it does so at the higher end of the low cost segment and makes sure to keep its margins high.

 

[Ta0jin]

Seriously though, this news doesn't make any sense. The iPhone is one of the cheapest handsets you could buy on or off contract. My Note 2 costs more, and the GSIII is the same price.

Are you kidding? The off contract price for a Note II is the same price as a 16gb iPhone! The iPhone is one of the most expensive phones you can buy.

 

[KnightWRX]

Are you kidding? The off contract price for a Note II is the same price as a 16gb iPhone! The iPhone is one of the most expensive phones you can buy.

Take the entire iPhone line-up, every model, every storage capacity, add their retail pricing off-contract, and maybe, just maybe, you'll have something as expensive as the single cheapest model sold by Vertu.

The iPhone is just one of the guys when it comes to pricing. Your phone wasn't expensive if it's not labeled Vertu.

 

[Digital Skunk]

Are you kidding? The off contract price for a Note II is the same price as a 16gb iPhone! The iPhone is one of the most expensive phones you can buy.

I stand corrected, I had to check and sure enough the 16GB model is $650 off contract.

Here I am thinking Apple kept with the $300 discount for on contract buyers, but they raised it up to $450.

Take the entire iPhone line-up, every model, every storage capacity, add their retail pricing off-contract, and maybe, just maybe, you'll have something as expensive as the single cheapest model sold by Vertu.

The iPhone is just one of the guys when it comes to pricing. Your phone wasn't expensive if it's not labeled Vertu.

Now THAT is an expensive phone. Feature phone I might add.

 

[HarryKNN21]

Yeap, and at CES Huawei announced their new 6.1" 'phablet', my Nexus 7 is going to start to look small.... then the iPad Mini.... all the while people will look funny holding giant phones to their heads!! haha

Nah, I think Steve was bang on with the 3.5" size.

I honestly believe 'phablet' will never be the future of smartphones. Why? Just look around and see which smartphone manufacturer is interested in making "phablet" besides Samsung?

Who would spend that much to manufacturer a phone that only has 0.3" advantage over the main stream smartphone like SIII? I think only Samsung does because only them would have that much interest with taking Apple down. 4.7" screen is more than enough.

When Apple switches from smartphone market to other markets, I believe Galaxy Note series will discontinue.

 

[Digital Skunk]

I honestly believe 'phablet' will never be the future of smartphones. Why? Just look around and see which smartphone manufacturer is interested in making "phablet" besides Samsung?

Who would spend that much to manufacturer a phone that only has 0.3" advantage over the main stream smartphone like SIII? I think only Samsung does because only them would have that much interest with taking Apple down. 4.7" screen is more than enough.

When Apple switches from smartphone market to other markets, I believe Galaxy Note series will discontinue.

The biggest problem with this statement is that other manufacturers are making phablets and devices with 5" and larger screens.

I actually see 4.3-4.7 inches becoming the new standard, with 5.5" becoming the "XL" versions, and that new Hauwei being the new "phablet" of sorts.

 

[KnightWRX]

I honestly believe 'phablet' will never be the future of smartphones. Why? Just look around and see which smartphone manufacturer is interested in making "phablet" besides Samsung?

Let's see, just this december HTC released the Butterfly, a 5 inch monster. Sony just announced the 5 inch Xperia Z with a 1080p display at CES 2013...

So yes, it seems the 5 and over inch smartphone segment is more than just Samsung's playground. Now will phablets grow beyond a niche ? Remains to be seen. But don't think it's limited to Samsung.

 

[D.T.]

I actually see 4.3-4.7 inches becoming the new standard, with 5.5" becoming the "XL" versions, and that new Hauwei being the new "phablet" of sorts.

Yeah, I guess we'll see how the larger phone segment plays out, and how large the mainstream size(s) will be vs. the niche sizes.

I kind of think there's a natural sort of limit to the larger upper end (where it becomes less portable/pocketable/distractingly large...), just not sure where the cutoff will be, I'd kind of figure (like you), the line will be drawn in the 4.5-5.5" range.

 

[triceretops]

Bigger is better?

I'm sorry, but I was reluctant to change from an iPhone 4 to a 5 because of the size difference. If they could have made the phone smaller I would have been really excited. How about a iPod nano sized phone?

 

[Digital Skunk]

Yeah, I guess we'll see how the larger phone segment plays out, and how large the mainstream size(s) will be vs. the niche sizes.

I kind of think there's a natural sort of limit to the larger upper end (where it becomes less portable/pocketable/distractingly large...), just not sure where the cutoff will be, I'd kind of figure (like you), the line will be drawn in the 4.5-5.5" range.

Agreed, and as an all too loud Note 2 owner, I'd have to say the phone is VERY pocketable . . . . . . . . but, a very small but, it does get a tad cumbersome . . . . at very rare times. Mainly when I am sitting down in the car and the phone falls on its short end.

Now, we see 4.7" becoming the upper end of the standard. Note sized phones will be niche, and anything larger will be like those 19" and 21" laptops of yore, where some will buy for specific reasons, and will pay a high premium to do so.

 

[Ta0jin]

Agreed, and as an all too loud Note 2 owner, I'd have to say the phone is VERY pocketable . . . . . . . . but, a very small but, it does get a tad cumbersome . . . . at very rare times. Mainly when I am sitting down in the car and the phone falls on its short end.

I had issues with my GS3 in my pocket but then again I do wear fitted jeans lol

 

[cliveren13]

Iph5

The Iphone is no longer a highend phone everywhere you go you see one android phones come with all the new features that iphone come with a year later android phones can and do cost as much as iphones so its the consumer who wins when all devices are reasonable a larger screen iphone on T-Mobile I would buy as I gave up an iphone 5 for a galaxy note II. its my choice.

 

[maxosx]

Uh ? Apple has been making "low cost" since forever to expand its market presence in segments that become near saturation point. 999$ MacBooks, then MacBook Airs, iPod Minis, Nanos, Shuffle even for that under 100$ PMP. The Mac Mini for a presence in the 500-1000$ desktop market.

The iPad Mini...

What Apple doesn't do is razor thin, cut throat margins. When Apple enters a low cost segment of a market, it does so at the higher end of the low cost segment and makes sure to keep its margins high.

Points well taken. Now that you've highlighted some specific examples I most certainly agree.

 

[Ta0jin]

I actually see 4.3-4.7 inches becoming the new standard, with 5.5" becoming the "XL" versions, and that new Hauwei being the new "phablet" of sorts.

Apple doesn't really follow the "standard" and personally I can't see them coming out with a bigger screen till maybe the iPhone 6 and if they do it'll probably be something like a 4.27 just shy of 4.3 inches. They like to be different.

 

[Digital Skunk]

Apple doesn't really follow the "standard" and personally I can't see them coming out with a bigger screen till maybe the iPhone 6 and if they do it'll probably be something like a 4.27 just shy of 4.3 inches. They like to be different.

I agree and I'd even say the iPhone 7. I see them milking the 5's screen size for everything it has.

Apple doesn't follow the standard at all, but when they do, they do like to hide it under a mountain of marketing. When they ripped Android's notifications center NO ONE but the un-bribed reviews mentioned how it was a total rip off.