Apple to Introduce Cheaper iPhone at WWDC?

[peterdevries]

Apple thinks they can cut a one time $50-$100 cost and double their sales

It's not Apple that thinks this (at least they haven't announced anything), but analysts and market researchers...

The fundamental principle of supply and demand is that if you lower the price of a product, more are sold. the iPhone is highly popular but viewed as very expensive (even with subsidizing). So each lowering of price will draw extra buyers. There is still a large potential for Apple to increase sales, so a doubling is not so crazy. Remember the sales increase when going from 2g to 3g. (even if you only consider the US and not the rest of the countries that saw the introduction of the 3G as the first model, like The Netherlands).

 

[GeekLawyer]

These analysts are notoriously uninformed. Especially this one.

Wouldn't it make more sense that Apple will retain iPhone 3G and lower its price. And also release the new iPhone at consistent/higher price points?

OS 3.0 will work on all models, but for some features (video, what have you), you'll need to be running the higher-end hardware.

 

[zizo79]

only 3 days left.... stop sending us mixed signals ....

 

[Hattig]

Can I be the first person to start the inevitable deluge of "I bought an iPhone yesterday and I've just discovered the rumours of the new phones" complaints? Unfortunately in my case it's absolutely true. In future, if anybody wants to know what Apple are about to release and not bother with the rumours, please feel free to watch my spending habits. Whatever I buy is generally superceded by a new version within 7 days......d'oh.

Maybe it will be within the time period where you can return it for the new one?

Otherwise, how did you not hear about the new iPhone being released soon? HOW? You're posting here!

 

[iPaf]

+1000 ! Plan cost is a major factor. (A cheaper data plan for casual users would be a good idea.)

And, of course, being available only on exclusive carriers. (A $200 iPhone would still sell like hotcakes on Verizon.)

Haha! Don't complain about your data plans.... Ours are 500Mo (25$), 1Go (30$), 3Go (60$) and 5Go (80$).

Well, I know you can't compete!

 

[Hattig]

These analysts are notoriously uninformed. Especially this one.

Wouldn't it make more sense that Apple will retain iPhone 3G and lower its price. And also release the new iPhone at consistent/higher price points?

OS 3.0 will work on all models, but for some features (video, what have you), you'll need to be running the higher-end hardware.

Why would they want to run with more than one base platform at a time? The new iPhone will have a new, faster CPU and more RAM, selling old systems will limit future application development. Far better they move all new iPhones to the new base platform, and differentiate on features (camera resolution, GPS/Compass, Screen quality, storage capacity.

 

[XciteMe]

I feel like a KID RIGHT BEFORE CHRISTMAS!!!!!!!!!!!

 

[Baadshah]

I feel like a KID RIGHT BEFORE CHRISTMAS!!!!!!!!!!!

same here

i am counting days for WWDC!! 2 and a half day left for the keynote!!!!!

 

[GeekLawyer]

Why would they want to run with more than one base platform at a time? The new iPhone will have a new, faster CPU and more RAM, selling old systems will limit future application development. Far better they move all new iPhones to the new base platform, and differentiate on features (camera resolution, GPS/Compass, Screen quality, storage capacity.

I don't see the distinction between the current "platform" and a new platform that's been crippled with a lower resolution camera, without the magnetometer, and a lower-quality display. Especially if OS 3.0 will work fine on the current iPhone 3G anyway.

 

[thetexan]

If they brought out an iPhone with like 4gb and no video cameras at 49$ they would absolutely destroy- I mean destroy every other phone maker out there. They would KILL Samsung, Rim, Nokia, LG- heck everyone. And users would flock to ATT for that. That is scary- it would truly reset the cell phone industry even more.

Man... I mean it would destroy other carriers. Sprint would go bye bye. Verizon would start playing even more damn annoying dork "can you hear me now" commercials...

Pre, next storm- DOA...

Nokia N9484457 or whatever- don't even bother bringing it out...

Not really. I know a lot of people who don't want an iPhone. They don't like iPhones for whatever reason. Over the recent months a lot of my friends who make good money purchased new, expensive phones that were not the iPhone. The price point isn't a barrier to entry anymore with the 3G like the first one was.

 

[peterdevries]

I don't see the distinction between the current "platform" and a new platform that's been crippled with a lower resolution camera, without the magnetometer, and a lower-quality display. Especially if OS 3.0 will work fine on the current iPhone 3G anyway.

Exactly. Best thing Apple could do is put the 3G in the new coat of the iPhone Video (if it fits), so design is consistent (not like keeping the white macbook along with the unibodies). Introduce the following lineup:

1. iPhone 3G (new design) 8Gb $49
2. iPhone 3G (new design) 16Gb $99
3. Iphone Video 16Gb $ 149
4. Iphone Video 32Gb $ 199

Now that would be range where everyone would find something to their liking. Or not? The ony problem would be the product differentiation between option 2 and 3...

 

[Thex1138]

What's Wrong With This Picture..

Financial Times confidently reports that Apple is planning on launching a "cut-price" version of the iPhone on Monday. Analysts are predicting the cut would be either $50 or $100. If true, the drop would significantly stimulate sales of Apple's iPhone by up to 100%. The new phone is expected to start production in July.

********?

AKA How can a product start manufacture in July and be released on Monday.

 

[GeekLawyer]

The only problem would be the product differentiation between option 2 and 3...

Not if Apple really brings a 4GB to market and option 1 is 4 and option 2 is 8. Not that we've seen any real (or even believable) evidence of that...

********?

AKA How can a product start manufacture in July and be released on Monday.

I'm pretty sure they meant "distribute" when they wrote "produce."

 

[peterdevries]

Not if Apple really brings a 4GB to market and option 1 is 4 and option 2 is 8. Not that we've seen any real (or even believable) evidence of that...

I actually proposed that and later edited it out...

New version:

1. iPhone 3G (new design) 4Gb $49
2. iPhone 3G (new design) 8Gb $99
3. Iphone Video 16Gb $ 149
4. Iphone Video 32Gb $ 199

 

[sishaw]

Once I said...

as a joke, to a friend who was asking about cell phones, something to the effect of, "don't worry, in a few years the only phone will be the iPhone."

If Apple does go after a lower-price market segment, this could well end up being true!

 

[GeekLawyer]

If they price this low enough, it'll be like the second coming of the RAZR. God, I hated that phone.

(But the hardware and the data/voice plans would have to be quite a bit cheaper...)

 

[TheCheapGeek]

It all seems so clear to me now, with reports of only the 16 gb iPhone 3g going end of life. Apple will in my opinion release a 4 GB version of the 3g in the same case design and sell it for free or for 49$ with a 2yr contract. The 8 GB 3g will then come in at 99$ with that same contract. The new iPhone video or whatever they may choose to call it will come in at 16/32 GB at the same 199/299$ price point with the 2yr contract. I also think that for the original 3g att might offer lower capped data plans to further lower the price of entry. My only hope is that the non subsidized price for the 3g, if it stays around, will still be 300-400$ to keep the resale value up so I can sell my 3g to get the new High end iPhone.

Come on Monday.

 

[peterdevries]

It all seems so clear to me now, with reports of only the 16 gb iPhone 3g going end of life. Apple will in my opinion release a 4 GB version of the 3g in the same case design and sell it for free or for 49$ with a 2yr contract. The 8 GB 3g will then come in at 99$ with that same contract. The new iPhone video or whatever they may choose to call it will come in at 16/32 GB at the same 199/299$ price point with the 2yr contract. I also think that for the original 3g att might offer lower capped data plans to further lower the price of entry. My only hope is that the non subsidized price for the 3g, if it stays around, will still be 300-400$ to keep the resale value up so I can sell my 3g to get the new High end iPhone.

Come on Monday.

deja vu.. See a few posts above

 

[illitrate23]

very interesting if it's true and they do have a lower price-point model
it's exactly the news that Palm won't want to hear

 

[GeekLawyer]

deja vu.. See a few posts above

Great minds...

very interesting if it's true and they do have a lower price-point model
it's exactly the news that Palm won't want to hear

Which is exactly why I think we're going to hear it, two days after the Pre's launch. And, to be honest, I expect the leaks to pick up steam later today and into tomorrow to keep iPhone in the news-cycle through Monday.

 

[peterdevries]

Great minds...

was that meant sarcastically? I know where you live! (How big can North Florida be?)

I expect the leaks to pick up steam later today and into tomorrow to keep iPhone in the news-cycle through Monday.

I expect some mild rain into today and into tomorrow and lower temperatures through monday... Sorry, you sounded a bit like a wheatherman/woman there

 

[GeekLawyer]

was that meant sarcastically? I know where you live! (How big can North Florida be?)

Amazingly, I wasn't even being sarcastic. I know that not everyone obsessively reads all the replies before posting.

 

[gkarris]

I actually proposed that and later edited it out...

New version:

1. iPhone 3G (new design) 4Gb $49
2. iPhone 3G (new design) 8Gb $99
3. Iphone Video 16Gb $ 149
4. Iphone Video 32Gb $ 199

My prediction:

1. iPhone 4Gb, 2MP Cam, $99
2. iPhone 8GB, 3MP Cam w/ Vid, $199
3. iPhone 16GB, " , $299
4. iPhone 32GB, ", $399

Too bad AT&T's prices still stink, especially compared to Sprint's plans for the Pre... (on T-Mobile here).

 

[timseley]

The price drop will probably entice more buyers but the most cost prohibitive part of the iphone is the monthly plan. If they don't offer a cheaper plan to go with an entry level iphone I wonder how much of an impact it will make.

 

[peterdevries]

My prediction:

1. iPhone 4Gb, 2MP Cam, $99
2. iPhone 8GB, 3MP Cam w/ Vid, $199
3. iPhone 16GB, " , $299
4. iPhone 32GB, ", $399

No disrespect but I think this is not gonna happen. The price of flash memory has gone down enough to start the offering of the iPhone Video with 16 Mb as the base model. I think it would be too expensive to produce three new models, starting with a model that has an almost outdated flash size (8 Gb).

I think they will use the 3G model with cheap flash as a cash cow until it doesn't make any sense anymore to produce it. 4 and 8 Gb flash will get rarer and more expensive ones demand falls. If they introduce the 4Gb version, than you can be sure that Apple bought that Flash somewhere for less than a quicky in the red-light district here in Amsterdam..