Other Apple needs a true budget phone

[RayB4]

Apple have introduced an entry level iPad which sell for less than $400 and it’s a serious piece of kit. OK it’s not up to IPP level but it kicks the opposition into the water and it will get people into the Apple ecosystem so why not a phone?

 

[44267547]

The SE was proof that people love cheap iPhones. Most people who owned it picked it up because it was cost effective .

I’d say that’s partially true, the other real reason is that the iPhone SE was more about the size than it was the cost. The price was a consideration for other countries that can’t afford the larger/more expensive iPhones, but for those who really wanted the SE aside from the cost, it was really about the size of the phone.

They don’t know the difference between a Max, a pixel or a galaxy. All they know is they want an iPhone that is the lowest price.

But consumers aren’t choosing the hardware, am I right? They’re choosing the operating platform that they’re loyal to, either android or iOS. So it doesn’t really matter what the hardware has to offer between smart phone competitors, because consumers are not always interested in every latest feature, as much as they are actually staying in the ecosystem they belong to.

 

[tonybarnaby]

Indeed. OP should read about the economic theory of Veblen goods. Some items in the market are expensive because, as price increases, demand for them actually goes up. iPhones are Veblen goods. They're also an aspirational product, i.e. people aspire to be able to purchase an Apple device. Their high price is a big part of their allure.

Apple would lose a big part of their painstakingly built up image of exclusivity and high quality by releasing a low price budget phone.

Interesting stuff. So you’re saying that due to this theory people who buy an iPhone feel better about their purchase because they equate high price with high quality? If the next iPhone was the best ever and it only cost $800, that would impact people’s perception it?

I agree Apple is known for making high quality phones, but it’s a stretch to call them exclusive with so many millions of them sold every quarter.

 

[Wide opeN]

iPhone is bread and butter. iPad is not.

iPhone is as much about sales and margins as it is mindshare. Currently, however the market is pushing back on these assumptions. As the Xs and Xs Max are not moving nearly as well. Hence Apple’s all out on Xr marketing.

So at this point it’s a waiting game of who will capitulate first Apple or the market!? As we’re currently in the throws of it all, I can’t really say... BUT

If memory serves me correctly, the market is undefeated. So what Apple will do eventually is anyone’s guess. I do know this, Apple will have to do something, sooner rather than later as the market has been winning since last year.

I expect to see a shift with 2019 iPhone of some sort concerning price.

 

[nouveau_redneck]

I think it is very likely that Apple produces a lower cost tier device soon. That seems to be a natural progression for a company that is increasingly focused on services. The lower tier device may never match some of the generic Android phones in cost, but definitely a tier below the current high end devices that they sell.

 

[Skylar.]

With Apple wanting to be the best of the best I doubt this would happen. I can't see them making a phone with budget specs / features. The non-techy people wouldn't realise there's a big enough difference to buy the more expensive model and they'd kill sales of their flagships.

 

[Small White Car]

If you have $500 to buy a phone, Apple has nothing for you except for a phone several years old and refurbished.

Your headline is wrong. It should be "I don't think the iPhone 7 is good enough to be a budget phone but I refuse to explain why I think that."

Because, as written, the iPhone 7 fulfills your original question exactly. It is, in fact, even cheaper than your request.

 

[mrs1986]

I think it would counter productive for their own flagships sales, if a cheap iPhone is released much of the actual customers will go with a cheaper one if the "experience" is basically the same... I know I would!

 

[borntrouble]

Believe me, I know Apple are far smarter than I am, but it is inevitable if they made a $499 phone, they would gain new users by the boatload. I’m sure if Ferrari made a $35k car, it would also be a massive hit with people who have always wanted one but couldn’t afford it.

The SE was proof that people love cheap iPhones. Most people who owned it picked it up because it was cost effective. My buddy works at a phone store, and people come in all the time asking for the cheapest iPhone. They don’t know the difference between a Max, a pixel or a galaxy. All they know is they want an iPhone that is the lowest price. A $499 iPhone would be the best selling phone year in and year out.

This would be the end of Ferrari, as it would completely compromise the exclusivity and quality it stands for.

 

[riteshritesh]

Just think of the stress on service centres, a low priced iPhone will cost. More cheap phone sales=more crowd for after sales repair work= more staff required= more waiting=more swearing and online complaints= diminished perceived value of Apple products= more of everything positive and Negative, Apple doesn't have currently.
Maybe Apple doesn't want that.

 

[nouveau_redneck]

Just think of the stress on service centres, a low priced iPhone will cost. More cheap phone sales=more crowd for after sales repair work= more staff required= more waiting=more swearing and online complaints= diminished perceived value of Apple products= more of everything positive and Negative, Apple doesn't have currently.
Maybe Apple doesn't want that.

You are looking at every possible negative outcome of selling more phones. It doesn't work that way. If Apple were to increase sales anywhere near the quantity to cause the havoc that you describe, they would have long since added sufficient capacity to handle the support.

Furthermore, if you are suggesting that Apple doesn't want that kind of increase in sales--well sir, you are quite mad. 🙂

 

[44267547]

With Apple wanting to be the best of the best I doubt this would happen. I can't see them making a phone with budget specs / features. The non-techy people wouldn't realise there's a big enough difference to buy the more expensive model and they'd kill sales of their flagships.

So, what was the intention of the SE when it launched in March 2016? Was that not considered a budget/entry-level iPhone? I believe it was. Even if you watch the March 2016 keynote when the SE launched, they specified that the SE was intended to make it as ‘affordable’ as possible, yet include the latest processor (A9) in a smaller compact device.

 

[riteshritesh]

Furthermore, if you are suggesting that Apple doesn't want that kind of increase in sales--well sir, you are quite mad. 🙂

I may be mad, but Apple for sure isn't and has reasons to not introduce a budget phone for reasons best known to them.
But never say never and keep on hoping !


P.S.: All the negative thoughts are after visiting Mi, Oppo, Vivo, Micromax, Karbonn and similar below USD 100 phone company's service centres. The time wasted in getting attended to, with a disappointing resolution provided to almost everyone, makes me believe the negatives of a budget phone.

 

[Bagaholic]

Apple wants the iPhone to be the best. The best always costs more. It's counter-productive for them to be "We will always deliver the best products, but also here's a mediocre phone so that more of you can afford"

 

[maerz001]

Just think of the stress on service centres, a low priced iPhone will cost. More cheap phone sales=more crowd for after sales repair work= more staff required= more waiting=more swearing and online complaints= diminished perceived value of Apple products= more of everything positive and Negative, Apple doesn't have currently.
Maybe Apple doesn't want that.

Apple wants the iPhone to be the best. The best always costs more. It's counter-productive for them to be "We will always deliver the best products, but also here's a mediocre phone so that more of you can afford"

They just want to make money. And after the last 30% decline YOY there comes todays front page rumor of a budget phone for the Asian market...

 

[Jack Neill]

I always thought the previous models at a reduced price was the way to go. iPhone 7 is still a solid phone and can be had 449$. Pixel 3a is 50$ cheaper but I say the other than the camera the 7 is a better phone in almost every way.

 

[Falhófnir]

Take a cursory look at any carrier's online store, or a big electronics retailer, and you will see you can pick up a brand new 6S for about £299. This isn't old stock, either. Apple are still manufacturing and selling these phones new. This is how Apple targets and reaches the lowest end of smartphone buyers, and I think there's a strong argument that the 6S is in a lot of ways better than the androids you can pick up for similar amounts of money (near flagship grade performance for just one). The 6s will be getting at least another 15 months OS support, and App support should last a good year, two, three even after OS support ends. You get all the benefits of iOS 13, Apple's ecosystem, you're giving up very little in reality aside from a few bells and whistles on newer models. For people looking for a basic, great smartphone experience this is still an excellent option.

 

[CrazyForCashews]

All I want is an updated iPhone SE.

How freaking hard is that to do? I am more and more tempted about getting a “small” Android phone like the Pixel 3.

 

[lordofthereef]

I agree. At $1000 a phone my family is Basically priced out of Apple. I suppose the Xr is an option but even that is hundreds more than iPhones used to run.

I'm perfectly happy with Android for my work device, my family has simply used iOS for well over a decade and didn't see a reason to switch. Seems like we are getting one more year out of the 6s And SE. After that, we have a decision to make.

For my personal phone it's not even iOS keeping me with apple. It's the apple watch, as surprised as I am to be saying that.
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Take a cursory look at any carrier's online store, or a big electronics retailer, and you will see you can pick up a brand new 6S for about £299. This isn't old stock, either. Apple are still manufacturing and selling these phones new. This is how Apple targets and reaches the lowest end of smartphone buyers, and I think there's a strong argument that the 6S is in a lot of ways better than the androids you can pick up for similar amounts of money (near flagship grade performance for just one). The 6s will be getting at least another 15 months OS support, and App support should last a good year, two, three even after OS support ends. You get all the benefits of iOS 13, Apple's ecosystem, you're giving up very little in reality aside from a few bells and whistles on newer models. For people looking for a basic, great smartphone experience this is still an excellent option.

I think the 6s receiving updates is going to end with iOS 13.x. It was rumored that they already wouldn't even see 13.x. As hopefull as I am, I'm also realist. The 6s Will be half a decade old at the end of he iOS 13 lifecycle. My Eepecting more than that out of the phone would extreme.
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That’s exactly what iPhone SE does.

It doesn't have a modern camera...
[doublepost=1562114224][/doublepost]

Your headline is wrong. It should be "I don't think the iPhone 7 is good enough to be a budget phone but I refuse to explain why I think that."

Because, as written, the iPhone 7 fulfills your original question exactly. It is, in fact, even cheaper than your request.

I can only speak for myself. But I don't feel a phone that was sold three years ago has been reduced in price enough to justify $500 for it. That thing is one year older than the 6s And costs only $150 less today than the 6s did brand new. Maybe I'm just cheap lol.

 

[lordofthereef]

So, what was the intention of the SE when it launched in March 2016? Was that not considered a budget/entry-level iPhone? I believe it was. Even if you watch the March 2016 keynote when the SE launched, they specified that the SE was intended to make it as ‘affordable’ as possible, yet include the latest processor (A9) in a smaller compact device.

I think that's exactly what it was. And am legitimately surprised we haven't seen a refresh. Maybe sales weren't where they wants them?

 

[Shirasaki]

It doesn't have a modern camera...

Hence cost reduction.
Would be great to have a stripped down iPhone 7 camera tho.

 

[Wyckham]

Apple want to expand their services and subscription in a world where smartphones are no longer such a desirable upgrade. It makes no sense to NOT have a budget minded phone for this. Apple would clean up with a phone priced under 600

 

[lordofthereef]

Hence cost reduction.
Would be great to have a stripped down iPhone 7 camera tho.

My point was that the person you quoted was asking for a modern camera. I understand cost reduction. I was just pointing out that the SE, wasn't, in fact, everything they asked for. Just making convo 🙂

The real game changer the SE provided was that it was 1 year old SOC technology placed into an older shell. Will Apple recreate that with XR intervals next year? That sure would get me very excited. But who really knows? I don't know that we've seen any such rumors.

I didn't personally like the 7 line because I didn't feel it expanded enough on the 6s lineup to justify a price hike (if I recall correctly the plus model was more than the standard $100 additional, and though it wasn't a massive leap, it started that steep slippery slope), and the changes to the home button didn't make a lot of sense to me (from an end user perspective). I honestly still don't know what the point was of changing the way that button felt for two generations before completely getting rid of it, and maybe I never will. May be slightly biased though because my wife had a bad experience with her 7 locking up and freezing and nothing really fixed it. Apple said it was running fine from their diagnostics and literally only upgrading to an 8 changed her experience. I know for a fact this wasn't the majority experience, but it's hard to get over a bad experience of your own.

Honestly we would just love for a decent phone to be well under $800, as was the standard for iPhones for so long. When I put my x screen next to any of our older devices I do notice a difference but when I don't have them side by side I don't find myself wanting for more. I still have regrets for getting rid of my 6s plus in favor of the X. That thing was bullet proof. And looking at how the SE and 6s we still have in the family operate, I know I'd still be using it (albeit with a battery replacement or two). I do know that I'd miss the camera though.

 

[Falhófnir]

I think the 6s receiving updates is going to end with iOS 13.x. It was rumored that they already wouldn't even see 13.x. As hopefull as I am, I'm also realist. The 6s Will be half a decade old at the end of he iOS 13 lifecycle. My Eepecting more than that out of the phone would extreme.

Possibly, though for people looking in a ~£299 price range I doubt you're getting more than a year of Android support on the other side anyway? If the 6s is left behind on iOS 13 next year, it will still have a good few years App support. So maybe not a great option for someone who wants to buy and keep a long time, but certainly it would get most people through a 2 year contract period.

 

[JagdTiger]

I played with my friends new $480 Pixel 3a XL today and it’s crazy how much phone you get for $500 and change after taxes. This is a brand new, midrange phone with pretty decent specs. The most important things from the more expensive 3 XL are there: stock android, rear camera and google support. It loses a front camera, some processor speed, lower resolution screen and a few other things. But it actually gains better battery life (bigger size) and a headphone jack. The 3a is even cheaper, and still solid.

If you have $500 to buy a phone, Apple has nothing for you except for a phone several years old and refurbished.

If they want to charge $1600 for the next Max, that’s ok with me. They are missing out on people who want midrange phones at affordable prices. $500 is as much as a lot of people will spend for a phone, and Apple has nothing new for them. If the se successor comes out, there’s no chance it’s $500. It’s hard to go into a store and pay $500 for a refurbished 7 or 8 when you see a phone like the Pixel 3a series.

That would be nice if they did and for $399.00.