Apple Planning Smaller iPhone Priced at $200 Without Contract

[cameronjpu]

Well if Apple could ease up on their 84% profit margin all the time (yes, I'm exaggerating so calm down) then they could make a $200 non-contract iPhone with a FEW missing features. Make it:

1)Small 4GB storage
2)No GPS

You may not be aware, but Apple is a public company with a mandate for profit maximization. Easing up on profit margin might make tree huggers and consumers happy, but it would make the people who own Apple very unhappy, which is why it's not going to happen.

But more likely Apple should just concentrate on a $99 iPhone WITH a contract to attract people who aren't going to spend a lot of money for a bleeping cell phone...this rumor has been reported a few times in Newsweek/WSJ type publications. They've been selling 8GB $49 3GS iPhones for awhile now...you telling me they can't make a version 4 or 5 for $99?!

Of course they CAN. But it would be less profitable so they WON'T! They don't need to. They can already sell as many iPhone4s as they can make for $600 each to carriers around the world. WHY would they spend precious manufacturing capacity to make LESS money?

 

[314631]

Funny stuff. John Siracusa said just last week on his 5by5 podcast he thought Apple needed to do this if it was serious about winning their market share battle with Google and Microsoft (who will now be a serious player with their Nokia handset deal).

 

[toddybody]

Id totally buy one if it was an iPod touch with cellular capabilities...basically an iPod Touch that can make wireless calls, no data plan, but of course wifi capable. Ive been paying ATT $30 month for unlimited data for like 4 years...all I really want is a PHONE + an IPOD. Pipe dream right?

 

[eye]

Apple has great success going after a certain market and cheap pay as you go phones are not that market. They aren't going to change what is working.

 

[$$$AAPL$$$]

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Does'nt make alot of sense to me... And it would likely severely cut into margins unless using scrapped & refurbish parts. It would be smart however to make it easier to get without a contract.

Ps. Buy AAPL on *any* decline in share price. It is surely going to $450.00 per share.

 

[$$$AAPL$$$]

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Id totally buy one if it was an iPod touch with cellular capabilities...basically an iPod Touch that can make wireless calls, no data plan, but of course wifi capable. Ive been paying ATT $30 month for unlimited data for like 4 years...all I really want is a PHONE + an IPOD. Pipe dream right?

You already can use iPods to make VOiP telephone calls, using any number of free apps using VOiP as the search term where you will find dozens of free phone calling apps. The few differences between the iPhone and iPod is cellular data, which is not necessary for internet or facetime, or any other communication. I have an iPod as an iPhone 4 backup and I never have to worry about not being to connect on any level.


Ps. Buy AAPL on *any* decline in share price. It is surely going to $450.00 per share.

 

[$$$AAPL$$$]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_2_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8C148 Safari/6533.18.5)

Well if Apple could ease up on their 84% profit margin all the time (yes, I'm exaggerating so calm down) then they could make a $200 non-contract iPhone with a FEW missing features. Make it:

1)Small 4GB storage
2)No GPS

You may not be aware, but Apple is a public company with a mandate for profit maximization. Easing up on profit margin might make tree huggers and consumers happy, but it would make the people who own Apple very unhappy, which is why it's not going to happen.

But more likely Apple should just concentrate on a $99 iPhone WITH a contract to attract people who aren't going to spend a lot of money for a bleeping cell phone...this rumor has been reported a few times in Newsweek/WSJ type publications. They've been selling 8GB $49 3GS iPhones for awhile now...you telling me they can't make a version 4 or 5 for $99?!

Of course they CAN. But it would be less profitable so they WON'T! They don't need to. They can already sell as many iPhone4s as they can make for $600 each to carriers around the world. WHY would they spend precious manufacturing capacity to make LESS money?

Eventually you will see iPhone 4 selling for $49... Same as 3GS now. Can it be without a contract or credit check is what is an interesting question. I don't really care, AAPL is and will do a perfect job maximizing earnings. I don't think this is a the top of their agenda. Expanding iTunes exclusive content and making products dependent and more expansive to and also within the building Apple ecosystem is key. Features and content. That guarantees sales at or beyond manufacturing capacity for possibly ever.


Ps. Buy AAPL on *any* decline in share price. It is surely going to $450.00 per share.

 

[gkarris]

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How is Apple going to release an unlocked iPhone when Verizon and AT&T paid Apple to keep the iPhone off other networks?

Not gonna happen....

Maybe a non-touch phone (wasn't there also a rumor of an iPod with phone capability?) Call it "The Apple Phone".

 

[ArchaicRevival]

I'm actually gonna be ditching my iPhone 3G for the new Virgin Mobile LG Optimus V... Mostly because I can't afford $60 + a month

$25 for unlimited data? I never talk on my phone so 300 minutes is just fine... BOOYA!

 

[azurehi]

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Eventually you will see iPhone 4 selling for $49... Same as 3GS now. Can it be without a contract or credit check is what is an interesting question. I don't really care, AAPL is and will do a perfect job maximizing earnings. I don't think this is a the top of their agenda. Expanding iTunes exclusive content and making products dependent and more expansive to and also within the building Apple ecosystem is key. Features and content. That guarantees sales at or beyond manufacturing capacity for possibly ever.


Ps. Buy AAPL on *any* decline in share price. It is surely going to $450.00 per share.

Apple juice, so tasty...

 

[macaroo2]

Quit complainin!!!!

I dunno why ppl need to keep harpin on about carrier subsidised phones. Its a good deal, especially now u have a choice between Verizon and AT&T. Here in Asia we have to pay approx US$1000 for the iPhone and US$43 for phone plan that gives 2000mins voice, 50min video call, 200sms, 50mms, 5gb data.... oh wait, it's still better than y'all.


Seriously tho, go with whatever carrier that best meets your need in the areas you're most likely to be and ur fine. It's not likely that your changing carriers that often anyway.

 

[kwikdeth]

what i dont understand is why a less-expensive iPhone has to be smaller physically. Wouldnt the cheaper way of engineering these things be to take the route of the original iPod and use off-the-shelf components? Older and/or slower processors, less RAM, less memory, lower-resolution displays... and how small could you take a touchscreen device and retain equal usability?
i say make it a bigger phone, like the size of the iPhone 2G, using a cheaper display, less RAM and storage, and call it a day. people will eat that up.

 

[the vj]

Targetting the pre school market, good money there.

 

[grlym]

iPhone Nano tied to iPad

I've thougth that if you are someone who is carrying around an iPad, what would you then do with an iPhone? The size of the iPhone then becomes too back. Also the iPod Nano now has a touch screen and operating UI that is somewhat like an iPhone. So if an iPhone Nano founctions as a small phone to have in your pocket and ties wirelessly to the iPod with stuff like HP/Palm demo'd this week for the Pre tied to their TouchPad, then a little iPhone makes a great deal of sense.

 

[sea stobble]

I feel like the next "revision" of the iPhone will be this smaller, "iPhone nano" and that the next iPhone will be only be an iPhone 4S with white as a color option.

 

[Xeperu]

Ridiculous rumor.

The Touch is already more than $229. Figure at least $100 to add cellphone capability(It is >$120 just to add 3g data to the iPad). So the minimum of cheaper iPhone would still be about $350.

$200 is pure nonsense.

3G cost to consumer: $130
Adding 3G cost: $5

Profit: $125

 

[SeaFox]

i don't see how a smaller form factor would work.

They could just make the screen a straight 16:9 aspect ratio, that would make it narrower.

 

[trekkie604]

Steve's ivory fence?

Outside of North America, you can walk into many Apple stores and buy a factory unlocked iPhone directly from Apple. (Mine came from the Hong Kong Apple store and I use it on T-Mobile.)

It is the North American phone companies that have the ivory fence.

I live in Canada. My iPhone 4 is factory unlocked and I can stick any carrier's SIM from around the world into it and it will work. If they add this internal, non-removable SIM; you'd be restricted to Apple 'approved' carriers only, likely switchable only through iTunes. Plus what happens if you want to use a different phone other than your iPhone on your account? Maybe on a ski-trip where it could be damaged? Nope. Can't do that with Apple's integrated SIM.

 

[-=XX=-Nephilim]

If anything, they should be working on LARGER not bloody smaller iPhone!

LARGER iPhone and SMALLER iPad !!!

Apple has lost me as a customer for iDevices long time ago and they obviously insist on it - fair enough I say

 

[Ed91]

I honestly can't see this working. On the iPod Touch, iPad, and iPhone, the home button is always the same size. It doesn't scale with the device, so we can assume that it will e the same size on this "nano" phone.

I keep holding my iPhone in my hand and imagining scaling it down by 1/4, and the screen just seems too small to be workable. Jobs said about sandpapering your fingers down to use a 7" tablet, but I think you honestly would have to with a screen much smaller than the current iPhone with its iOS 4

 

[Poppysdad1]

There would be a market for it

I don't see it happening but I do think there would be a genuine demand for a smaller simpler iPhone.
What people are forgetting here is that not everyone is keen to do a million things on their phone. A smaller iPhone that didn't run apps but had an ipod and let you browse the web would really appeal to a lot of the less technically confident people out there. My wife refuse to get an iPhone because she just sees it as confusing with too much going on. She wants to call and text and if she can have her music with her that would be a bonus. If Apple did this and packaged it beautifully,as they so often do, then it could be a huge hit.

Still don't think it will happen though.

 

[MrCrowbar]

Well, you could eliminate a lot of the black space above and below the screen. I'd love a smaller Apple phone as I use mine mainly for music/podcasts, calling, address book and calendar. I guess landscape typing would be necessary for text messages though.

This small phone could do without:
- front facing camera
- wifi
- GPS (although I'd reaaaaallly like that)
- multitasking
- bluetooth (you can barely use it for anything on the iPhone anyway)

 

[pepitko]

I'm doubtful about the smaller form factor, apps are fitted to the current iPhone resolution and doubled in size for the iPad, if they are not native. A smaller screen would make it unnecessary hassle for developers to put apps on the thing.

If anything, I'd bet on the current iPhone 4 to replace the 3GS with 8GB of memory when the iPhone 5 comes around.

 

[416049]

Well, you could eliminate a lot of the black space above and below the screen. I'd love a smaller Apple phone as I use mine mainly for music/podcasts, calling, address book and calendar. I guess landscape typing would be necessary for text messages though.

This small phone could do without:
- front facing camera
- wifi
- GPS (although I'd reaaaaallly like that)
- multitasking
- bluetooth (you can barely use it for anything on the iPhone anyway)

No gps-ok

No camera-ok

No wifi or Bluetooth-are you serious who would by a phone for 200$ if you can get a phone with Bluetooth and wifi for cheaper than this..

I think this would definitely not be this crippled... What's ur next suggestion? No touchscreen? Back with the scrollwheel?

 

[Slurpy2k8]

I just don't see how this can possibly happen. How much smaller can the phone get, while still sporting the same UI and supporting the same apps?Not much, in which case it would not be worthwhile creating a new model. Also, what hardware features would be scrapped to lower the cost? It would create massive fragmentation for the appstore, etc. As much as this idea seems attractive when the thought 1st come to mind, it just doesn't make sense with Apple market strategy. The current iPhone's screen is now even on the small side when compared to other similr smartphones, that range anywhere between 3.7-4.3in. I don't see how they can further reduce from 3.5' without affecting useability. Also, no way in hell Apple would make a new version without full appstore support, it would not be worth fragmenting their store market for that.