The 3GS and the 5 both run iOS 6? Processing speed is dramatically different between the 2. They very easily could put the A6 in that phone and the A7 in the 5S
Edit: wrong chip numbers
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Apple to Discontinue iPhone 5 Alongside Launch of 5S and Plastic Models?
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The 3GS and the 5 both run iOS 6? Processing speed is dramatically different between the 2. They very easily could put the A6 in that phone and the A7 in the 5S
Edit: wrong chip numbers
I'd think it makes sense for the 5S to be the flagship, with the plastic phone as a cheaper option. Not sure about continuation of the 5.
Storage should bump up to 32 - 64 - 128
Storage should bump up to 32 - 64 - 128
This makes perfect sense. The iPhone ASP just had it's largest drop from $613 to $581. They need to maintain that ASP.
There are two iPhone buyers 1) those who want the newest and 2) those who want the cheapest. The best way to increase ASP is to move some of the cheapest buyers up market one level to the middle priced phone.
So they need to create large product differentiation between the low level and middle level. And, in order to increase total profit, you need to make the iPhone Color (the middle level) for less than the iPhone 5 (which would have become the middle level). This is a given, since it's practically the same phone but with cheaper materials. So you are leveraging lower build cost and moving more people up market at the same double. Double leverage to increase ASP and profit margin at the same time.
To move buyers up market, focus on things they can see in the store. The iPhone Color is obviously different from the iPhone 4S if they are sitting in the store next to each other. Even to normal people, which is the target market at this level. So the goal here is to drive buyers from the Free iPhone 4S to the $99 iPhone Color with a bigger screen and colored case. BOTH are things that we know effect buying decisions.
As a side benefit, the higher profit margin iPhone Color can be sold unsubsidized for a lower price than the iPhone 5 in emerging markets. Since it has lower cost to build than an iPhone 5.
This is Win-Win-Win scenario that Apple is famous for create. Kudos.
There are two iPhone buyers 1) those who want the newest and 2) those who want the cheapest. The best way to increase ASP is to move some of the cheapest buyers up market one level to the middle priced phone.
So they need to create large product differentiation between the low level and middle level. And, in order to increase total profit, you need to make the iPhone Color (the middle level) for less than the iPhone 5 (which would have become the middle level). This is a given, since it's practically the same phone but with cheaper materials. So you are leveraging lower build cost and moving more people up market at the same double. Double leverage to increase ASP and profit margin at the same time.
To move buyers up market, focus on things they can see in the store. The iPhone Color is obviously different from the iPhone 4S if they are sitting in the store next to each other. Even to normal people, which is the target market at this level. So the goal here is to drive buyers from the Free iPhone 4S to the $99 iPhone Color with a bigger screen and colored case. BOTH are things that we know effect buying decisions.
As a side benefit, the higher profit margin iPhone Color can be sold unsubsidized for a lower price than the iPhone 5 in emerging markets. Since it has lower cost to build than an iPhone 5.
This is Win-Win-Win scenario that Apple is famous for create. Kudos.
I think too many other flagship phones coming with 32gb standard (HTC one, lumia 1020 etc) will make them bump the capacities. Not only due to competitors, but also another reason for people to upgrade from the cheap (16gb assumed) iPhone Plastic.
I don't think that a 12mp camera with slow mo video will make owning a 16gb device pleasurable.
I think they will drop the 16gb iPad w/ retina screen too.
Not the best for the App Store though... 
Some games/apps still have the 3.5" ratio compatibility. No matter what, all apps & App Developers need to update to the Apple's App Devs latest specs.
Some games/apps still have the 3.5" ratio compatibility. No matter what, all apps & App Developers need to update to the Apple's App Devs latest specs.
Not the best for the App Store though...
Some games/apps still have the 3.5" ratio compatibility. No matter what, all apps & App Developers need to update to the Apple's App Devs latest specs.
It would be nice if there was a time limit for developers to adopt the new screen resolutions and once they reach that date their app gets pulled from the app store if they haven't implemented the new resolution. That is a good incentive to keep your apps updated from a developers standpoint.
Makes sense as far as streamlining production to only have to make one display panel to use in both devices. I was guessing early on that they would engineer the plastic iphone to be compatible with iPhone 5 displays, but the flex cables clearly don't line up. It would seem foolish to have the high end and low end phones using the same display and logic board, but the middle ground is still using last years parts. I guess those of you hoping for a $99 iPhone 5 better jump on the promos they're running now because old stock will probably be kept for AppleCare replacements.
IMO this is the best approach. There are many good things about moving to this type of a model for both consumers and Apple.
The major play is likely that by shutting down production of two older models, those production lines can now focus solely on the low cost model and crank out gobs of them for the awaiting APAC market.
The major play is likely that by shutting down production of two older models, those production lines can now focus solely on the low cost model and crank out gobs of them for the awaiting APAC market.
This was a big hesitation for me from getting the black 5. Have you seen how beat up they are in the Apple stores? Damn. However, the white looks stunning and holds up exceptionally well (my girlfriend has one, no case but a sleeve so it gets some exposure to surfaces, minimal though).
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Really curious what they'll do with the naming pattern.
There is a time limit. Apple contacted developers notifying them about support for the iPhone 5
With all the color choices, I'm not so sure they will have two different plastic models.
Here we go, now people will complain why apple discontinued the iPhone 5 (Given they actually do drop production of the iPhone 5 after 5S/6 launch)....
IMO I would never pick the "Cheaper iPhone" even if it came in fancy colors over a iPhone 5 (not talking about 5S/6)
IMO I would never pick the "Cheaper iPhone" even if it came in fancy colors over a iPhone 5 (not talking about 5S/6)
It's refreshing to see Apple apply common sense in this situation. It's time all 30 pin devices are phased out.
