Apple to Drop iPhone 3GS, Introduce 8 GB iPhone 4S Next Week?

[Cougarcat]

I have a vague recollection that the iPhone used to be behind the iPod Touch on memory because the Touch had two memory slots to the one in the equivalent iPhone, due to not having the same internal components. Is that still the case?

Yes, but that is irrelevant to the issue as to whether Apple will improve the cost per GB. They could get rid of the 16 GB and return to offering two models, 32 at $199 and 64 at $299.

128 GB nand modules came out earlier this year, but I doubt apple will use them right away. It took them well over a year to start using the 64 GB ones. The supply that they need probably isn't there yet.

 

[jman240]

I really want them to drop the 8GB iOS device all together.
Bring back the 16GB iPhone 4 for free/$1, Price the 16GB 4S at $99, then tempt people with just a 16GB, 32GB, and 64GB 5. I don't see 128 happening quite yet, unless they managed to free up more space for an extra NAND chip, or they released 128GB chips Apple has deemed 'usable'. In either case I'm betting MacRumors would have pointed that out to us (Which they may have, since I don't live my entire life on here.)

But as for the iPod touch... I see absolutely no reason why we've had the 8GB/32GB/64GB models... seems more sensible to just have 16GB instead of 8 since flash memory is supposed to be so cheap nowadays.

Makes the most sense.

8GB iPhone 4 for $0.99
16GB iPhone 4S for $99
16GB iPhone 5 for $199.

I think the only reason we have 2 8GB low end devices now is that Apple needed some way to quickly differentiate the device for consumers. In this release the new design with be the differentiation and not the storage. Basically, because the iPhone 4 and 4S look identical they used the storage capacity to help consumers tell them apart.

 

[iSRS]

Target has a decent deal

I think the $99 option will be the 4S 16 GB. I'd love to see the 5 start at 32 GB for $199 but I doubt it will happen.

Exactly. Plus if you basically want all the features of the iPhone 5, 99 bucks gets you the 4S. Thats a pretty good deal I think.

Target has the 16GB iPhone 4S for $124 this week.

 

[FakeWozniak]

I think the 3GS will stick around until the Samsung lawsuit appeal process is closed.

 

[Mr. Gates]

Bye Bye black bar of soap

 

[Dwalls90]

The iPhone 4 will be $0.99, just like the 3GS is now. No freebies.

True.

Apple's paying I believe under a buck a gig now. The difference between the "free" model and the top model is negligible in cost-$50ish a unit v. $400 at retail. Huge ripoff.

Honestly, I don't know current prices, and I didn't see a source for the $1 per gig that Apple pays. But we'll still play by those numbers.

While it wouldn't hurt the switch from 8Gb to 16Gb for the 4S or 4 entry level models (less than $8), that could add up MUCH MORE on the higher end model.

The 4 and 4S (16Gb) both cost ~ $200 to manufacturer, and retail for $650. The 64Gb 4S costs about $250 to manufacturer (64-16 * ~ $1), and retails for $850.

Assuming production costs remain constant, switching the highest end iPhone 5 from 64Gb to 128Gb could increase the cost of materials from $250 to $300 (this is being conservative, since as the size of the Chip increases in size, it actually costs MORE per Gb, increasing quadratically, not in a linear sense of $1 per Gb). The existing margin, based solely on parts cost, would change from 70% to 59%. That's a huge dip, and likely the reason Apple won't budge on their space vs. pricing offerings this year.

OR

They could offer the entry level 4 and 4S at 16Gb, and then offer the 5 in the same flavors as last year (16, 32, 64). That would prevent the decrease in margin discussed above.

 

[CmdrLaForge]

I really hope they offer the small versions in white as well.... let's see. Next week we are all smarter about it.

 

[MacFather]

Deleted.

 

[driceman]

Let's be honest. Is anyone going to miss it here in 2012?

 

[CmdrLaForge]

If the iPhone 5 in its lowest capacity goes to 32 GB I could convince myself to get one. Same price as current 4S w/ 16GB of course.

 

[dfinecy]

I really hope they up the capacity of the 5...32g is big enough for me and I'd rather not pay an extra $100 unless I have to.

 

[KdParker]

It might work well, but considering how many iOS 6 features are not going to be supported by the iPhone 4, I would think it's a much better value to just pay the $99 and get the 4S. Besides, this might be the last iOS version for the 4, so for future proofing's sake, the 4S is the best option for a "not so tech savy" person getting an iPhone for the first time.

That is for anyone who cares about what their smart phone can do. Lots of people are just fine with a flip phone that rings every now and then. But given the free option of iPhone or [fill in any other crappy phone]. Most non tech savy people will go for the iPhone due to its popularity.

 

[ltcol266845]

Ugh, NAND flash is so cheap, especially for Apple. 8GB is too small and should never be sold in a new phone again. Ever.

iPhone 4 16GB - $0.99
iPhone 4S 16GB - $99
iPhone 5 32GB - $199
iPhone 5 64GB - $299

That's what makes the most sense in 2012.

 

[deannnnn]

My eyes hurt when I look at the screen of a 3GS. Retina has ruined me!

 

[rmwebs]

This is one of those news posts where every normal person will just go "well duh!"

Seriously, who the hell thought they would keep the 3G going and why? The reason they kept it going was to provide an entry level model. By moving to the 4 (all be it a cut-down version) they can continue on the same price model, and not have to worry about the handset not being able to handle the latest version of iOS (as its highly unlikely iOS6 will be very usable on a 3G if at all.

 

[Spock]

$329 unlocked iPhone 4S 8GB. I can dream.

 

[iEvolution]

As I have said repeatedly, its time for Apple to up the capacities on all their iOS devices.

Its just ridiculous that they continue to offer the same capacities at the same price points year after year when I know flash prices have dropped to new lows in the last few years.

 

[wehokev]

3gs will live on for pre-paid non contract players

While the 3gs will probably make its exit from the rich world, there are still plenty of potential customers elsewhere.

Why wouldn't Apple keep the 3gs around at a lower price in those markets where people buy their unsubsidized phones without fixed contracts and minutes/kilobytes on an as-needed basis later?

Finally, consider this: Why would Apple go the the trouble of making the 3gs compatible with iOS 6 if it was not sticking around, at least in part of the world?

The 3gs will live on.

 

[AlexJaye]

On the one hand, they probably want to avoid higher storage capacity so that they can reap the benefits of those who want extra storage and are forced to buy into the iTunes Match and upgraded iCloud storage offerings.

On the other hand, with the size of apps lately due to retina graphics and such, more storage might be a necessary thing.

I haz a confused

They'll just pull an AT&T and figure out how to best rip customers off.

 

[Tiger8]

This...is not insightful. Slow Apple news day...

Might be a slow day for Apple news, but Amazon is on fire today!

 

[lordofthereef]

iPhone 4 8gig? Anything less than 16gig with the size of retina display apps seems just silly.

The already sell an iPhone 4 8GB. Did you mean 4S?

 

[AR999]

I find it astounding Apple have the cheek to sell the 3GS still, I find it even worse they sell it to gullible people for £329 who just want an iphone and dont know its using the old screen rez that many apps no longer support.

 

[Hammie]

I still use my old 3GS as a remote control for some of my media room's devices.

 

[profets]

Ugh, NAND flash is so cheap, especially for Apple. 8GB is too small and should never be sold in a new phone again. Ever.

iPhone 4 16GB - $0.99
iPhone 4S 16GB - $99
iPhone 5 32GB - $199
iPhone 5 64GB - $299

That's what makes the most sense in 2012.

I agree.

I can understand if for some reason 128GB is not yet feasible, but having the base (new iPhone) starting at 16GB for the 4th year in a row is stupid.

 

[JHankwitz]

I could have told you this.

Yes, but you're not an authorized "analyst" or a published rumor site.