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Apple Planning Smaller iPhone Priced at $200 Without Contract

bobob said:
I pictured this rumored device as exactly an iPod Touch with phone and data capability, but with the same size screen as the existing models.

Apple could cut the cost with a lesser resolution screen and slower processor, and still make heaps of cash on app sales.





I like your Fruit Loops analaogy, though I think that this low cost iPhone would have pay-as-you-go talktime and data. There's plenty of money for the carriers to make in selling those incremental cards, to those people who don't have the reliable cash flow to pay for the full iPhone monthly plan.
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exactly! i don't see why people can't grasp this concept!

the ipod touch that is currently out is only $229. it's basically an iphone without a sim card. this can easily be done for $200.
 
Gemütlichkeit said:
Exactly, anyone that follows apple knows this is not their style. And compete with android? I'd say they're doing just fine.
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Simple question. How are you going to make the most money, by selling phones or by selling services, ads, and apps on phones?

I'd argue that you'll make a lot more by doing the latter.
 
that would actually mean apple would use common sense and give users another form factor. doing that would be admitting they don't have the one size fits all phone. i personally would love to see different offerings of ios in different form factors, but something sadly i don't ever see happening
 
Mr Kram said:
i don't see how a smaller form factor would work.
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I agree. My first thought was that it would be somewhat appealing to have a smaller device in my pocket. I don't use my iPhone for gaming as much as I used to now that I have an iPad so I thought a smaller form factor would be appealing. Then I thought about what I use the device for on a regular basis... Calling, texting and websurfing when I don't have a larger device. I don't know how a smaller keyboard would work. Even before you start typing, the preview window and keyboard taking up about 1/2 of the real estate when texting. Add a few lines and it's like 2/3rds. I just don't know how they could make a smaller keyboard would appeal to enough people.

If they want to reduce costs, how about a non-retina display, weaker processor, less memory & storage? Problem with that is some of the higher end apps can really use the processor and ram. One of the most appealing things about Apple and all of their products is that "they just work" and you don't have to worry about anything. If the device gets crippled, that won't be the case.
 
trekkie604 said:
NO! If that happens, I will not be buying another iPhone.
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What! Don't you like the idea of having many SIMcards stored in memory on your phone with them just switching over to new networks like you've moved from one friendly wifi network to the next?

Not to mention having all of them backup to your computer or better still MobileMe so if you lose your phone your replacement phone still knows all the right details.
 
Which product do you think people would buy?
iPod touch-$229
-iPod
-apps
iPhone rumored-$200
-phone
-iPod
-apps
iPhone 4 -$599
-phone
-iPod
-apps

The choice is too obvious. If Apple should this product the would be forced to discontinue all other pocket devices they currently sell, and the margins on the product would be infinitesimally small.
 
Warbrain said:
And this would be free subsidized if desired.
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there is a huge market for no contract phones. I know a lot of people that need a new iphone or want out of a blackberry, but won't pay $599 no contract iphone.

for $200, you wouldn't have to worry about your contract at all and can replace an iphone real cheap. only way now to get one decently cheap is to get is subsidized, which if u break the phone or it's lost then you have to fork out $599 again.
 
trekkie604 said:
I swap between my iPhone 4, Galaxy S and SE W910i frequently. GSM standards give me that freedom; I don't need Steve putting up his ivory fence around that.
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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.
 
rmhop81 said:
there is a huge market for no contract phones. I know a lot of people that need a new iphone or want out of a blackberry, but won't pay $599 no contract iphone.

for $200, you wouldn't have to worry about your contract at all and can replace an iphone real cheap. only way now to get one decently cheap is to get is subsidized, which if u break the phone or it's lost then you have to fork out $599 again.
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If you break the phone and it's under warranty you can usually go to the Apple store and get it replaced for $199.
 
AaronEdwards said:
Simple question. How are you going to make the most money, by selling phones or by selling services, ads, and apps on phones?

I'd argue that you'll make a lot more by doing the latter.
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Right now Apple makes way more by selling the hardware. Another article on the front page shows the obscene amount of profit generated by the selling the iPhone. The rest is just gravy on top.

It could change in the future, though. iAds seem to be tanking a bit if the rumors are to be believed, but the app store is doing very, very well.
 
I still think they would be better off licensing out iOS to a select one or two partners. HTC make excellent phones, as does Samsung, LG and a little known company called 'ZTE'.

HTC can get costs down by offering slightly cheaper builds. Most people dont care for a metal phone and are happy with a nice plastic one. At this rate the Android phones will seriously overtake and shadow the iPhone, the stats speak for themselves.
 
rmwebs said:
I still think they would be better off licensing out iOS to a select one or two partners. HTC make excellent phones, as does Samsung, LG and a little known company called 'ZTE'.

HTC can get costs down by offering slightly cheaper builds. Most people dont care for a metal phone and are happy with a nice plastic one. At this rate the Android phones will seriously overtake and shadow the iPhone, the stats speak for themselves.
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Hell no. You obviously don't remember the days of the Mac clones. It was awful.
 
You get a refurb when you replace a broken phone tho, don't you? Not a huge issue (refurb > broken), but worth noting.
 
Not Apple's style

To all those who say this is not Apple's style...

Once upon a time, all iPods came with an internal hard disk. There were rumors of Apple entering the low-end flash based mp3 market, and many people said "It will never happen, it's not Apple's style". Apple released the iPod shuffle...
 
Warbrain said:
Hell no. You obviously don't remember the days of the Mac clones. It was awful.
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I said a select few manufacturers ;) With limitations on price ranges, what features they couldnt use, etc. Just because it failed when the company was screwed up, it doesnt mean it'll fail now. Stop being so scared!
 
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