Apple's Low-Cost iPhone to be an 'iCloud' iPhone?

[Sackvillenb]

Interesting idea

This is a very interesting concept... wether it's doable or not is another story.

But I could see Apple doing it, although there are many variables here...

I wonder how much storage the phone really have.... 8 Gb? I can't see less than than... I mean you can't store EVERYTHING in the cloud. I'm assuming that apps and most app data will still be on the phone... while media like music and maybe video are not?

One of the problems with this is that the quality of the phone will in essence be dependent on the quality of the data connection... which for wifi is not a big deal, but cellular signals vary wildly in their strength and quality...

But, in and of itself, a cheap "entry level" iphone would be a great idea on Apple's part. I know many people who are hesitant about the iphone 4 for a variety of reasons, including carrier lockdown (which in Canada is suckier than most places). Yes you can buy them outright here... but a $700 phone made of glass... that's a big waste of money if you drop it the wrong way! Unless you buy an ugly (but extremely functional) otterbox I suppose.

Well anyway... if Apple made a decent "cheap" iphone, I would absolutely buy one!

 

[edddeduck]

How does this rumor make any sense?

1) iCloud does not interface with Windows.

I agree it makes no sense but point 1 is not true iCloud does interface with Windows.

Edwin

 

[blybug]

I wonder how much storage the phone really have.... 8 Gb? I can't see less than than... I mean you can't store EVERYTHING in the cloud. I'm assuming that apps and most app data will still be on the phone... while media like music and maybe video are not?

I think it would be a low end iPhone for low end users (i.e. my Mom). I'd consider myself a pretty high end user and presently have a 32GB iPhone with 70 apps installed, probably only 10-15 of which I actually use regularly and/or frequently. According to iTunes those apps take up 1.62GB. I keep 18GB of music synced and a rotating batch of TV episodes to fall asleep to at night for 2.5GB. I've got >8000 photos synced for about 4GB...just because I can.

The average low-end user wouldn't approach 70 apps or greater than my 1.62GB for awhile, they'd tend to use the installed Apple apps and add Facebook and Angry Birds. Music and photos would be in the cloud, and probably most would have no idea how to even get video on there if they wanted to. So theoretically an iPhone Air might get by with 2GB of local storage, 4GB to be generous. Chances are the marketing wouldn't even mention the amount of local storage for apps and/or caching streaming cloud media (like TV).

Have you ever taken a look at the usage of the average person's 16 or 32GB iPhone? Whenever someone asks me to help them with theirs and I plug into iTunes, I'm astonished at the empty space. Most people download a few apps and songs directly, the only photos are the ones they took with the device. Most commonly the time of my assistance is the first time they've plugged the phone back into the computer since they bought and activated it.

For better or for worse, a huge number of people already utilize their iPhones exactly like an "iPhone Cloud" or "iPhone Air," barely tapping the storage capacity, but frighteningly with no backup or regular computer sync whatsoever. Having everything officially tied to and backed up in the cloud is a step forward for this group, who up until this point without MobileMe or iTunes Cloud have "lost everything" when their iPhone has an issue requiring restoration.

 

[blybug]

Also interesting that Apple is providing iMessage with iOS5, and presumably will continue to provide FaceTime between all compatible iOS devices. The missing link is iCall (FaceTime without the Face) between iOS devices. Imagine the iPhone Air being able to make calls to other iOS devices without a contract at all. Would be a great device for school-aged kids of parents with iPhones.

 

[MacAddict1978]

'Less' iPhone storage does not necessarily mean 'little' iPhone storage... an 8GB iPhone is still pretty good for most users... even a 4GB of storage is decent. (for today's usage, I can't see there would be constant syncing)

.

That's a total cop out though. Apple charges HUGE premiums for extra storage (and sadly their competitors have mostly begun to copy those pricing tiers).

Everyone else in the market place has put out cheaper Android phones in the $100 range, even on pre-paid.

The iPhone 4's component costs are down to about $171 (and that's with tear downs using estimated street pricing. Apple surely has deals in place to get components cheaper than is publicly known.) A stripped down version surely doesn't involve too much R&D to add into the cost.

If they put a model out that drops the retina display, cheaper case materials, a more basic camera, etc. I'm betting they can get the cost factor down to $100 or less without putting out a device that's crippled.

The alternative markets they want to go after aren't contract customers. If they want prepaid consumers, developing markets, and people who don't spend a lot of money on a phone, they can't seriously think a $400 off contract price would be a selling point. The prepaid market is hurting because of smart phones. There's few models the prepaid companies can get out in the wild for $200 or less. $200 no contract is where the sweet spot is, or they shouldn't bother.

 

[lazyrighteye]

How does this rumor make any sense?

1) iCloud does not interface with Windows.
2) The purpose of a low cost phone is to tap the developing markets, which are largely prepaid. Very few prepaid services offer reasonable data plans.
3) 3G internet speeds are not sufficient for vast amounts of media streaming.

1) Incorrect. From iCloud press materials: "Using iCloud with a PC requires Windows Vista or Windows 7; Outlook 2010 or 2007 is recommended for accessing contacts and calendars."
2) Apple thinks this developing market is "youth." Parents already have iPhones. If their kids' phone could iMessage, Facetime and iCall(?) with their iPhones, contract-free, HUGE win. But is that wi-fi only (no good) or is their some prepaid SIM that would suffice?
3) Sure.

 

[Brien]

I don't buy this story for a second. I could however see Apple making a cheaper iPhone 4, and making that a free model with a contract, instead of the previous years $99 phone.


I just think it will be an iPhone 4 with 8gb of storage.

And cheaper parts (screen, cameras) most likely.

 

[prestomusic]

another flaw in this low cost iPhone idea is that it offers nothing to penetrate the emmerging economies - those with limited cellular data bandwidth.

 

[SeaFox]

The main flaw in it is it really isn't a low-cost iPhone. It's a bottom-tier model that does nothing but lead people into considering the iPhone, then when they realize the limitations of it they may be more receptive to spending a little more for the least expensive regular iPhone, whereas before they weren't even considering an iPhone because of the cost.

It's sort of like the Mac lineup. Hardly anyone thinks of a Mac Mini as being a worthwhile system performance-wise, but its existance does one thing for Apple, and that is allow them to say "Macs aren't expensive, nu-uh! New models start at $799!" neglecting to mention nobody wants the kind of Mac you get for that price.

Same with the "low cost" iPhone. With no on-board storage, how will you use apps? Prolly wont be able to. The apps are what makes a smartphone "smart". But it lets Apple say that "you can get current generation iPhones without a contract starting at $249!", that gets people in the door and in the salesmens' court to upsell them to a normal iPhone.

 

[gpat]

another flaw in this low cost iPhone idea is that it offers nothing to penetrate the emmerging economies - those with limited cellular data bandwidth.

And how can developing markets be penetrated by anything like an iPhone? The only realistic thing there is a rock-bottom-end Android phone with Opera Mini for extreme bandwidth conservation, and Apple is not lowering itself to such thing.

 

[vitzr]

Apple's race to the bottom is bound to make iPhones even more prolific. A dime a dozen comes to mind. Now it really begins to get interesting. Free iPhones for all. The carriers will love this move.

 

[gpat]

Apple's race to the bottom is bound to make iPhones even more prolific. A dime a dozen comes to mind. Now it really begins to get interesting. Free iPhones for all. The carriers will love this move.

People have to snap out from the "free phone" mentality. What is the TCO of an AT&T iPhone 4 today? $2000? What would it be with a "free phone"? $1800? 10% off for 2 years worth of usage of an inferior device? Who cares?

There is no such thing as a "free phone". You just pay zero upfront and the carrier gets the device cost from you with a large interest rate.

If a "cheaper iphone" comes out, it should be cheap enough for people to get without a contract. No "free phone" marketing crap. And the carriers should hate, not love, this move because they would become unable to pin down customers with 2-year fixed rates and get some competition started. Which is what we want.

 

[vikingjunior]

Again it's not an prepaid iphone we need it's a prepaid carrier we need. Heck some people will buy the iphone 5 outright. So this isn't an issue of a low cost iphone but an low cost iphone carrier.

Give Boost/VM/Tmobile/Metropcs a $350 iphone 3gs and see what happens.

 

[vitzr]

If Apple announces a "free" phone, people will believe it. That's all there is to it.

The Apple Marketing Machine convinces people of whatever Steve wants them to believe. Real or not, truthful or not, it's the power Apple has over a huge segment of people around the world.

Perception is reality and Apple has control over people's perception. That's the beauty of the closed eco system, Apple can dictate and people buy into it. No other company has control over people's minds like Apple.

Like it or not, it's just the way it is, the sales volume confirms it.

Who do you think is funding the huge new "Shrine" in tribute to Apple and Steve, but all of us who buy their products. We pay the Apple tax, and now Apple's new headquarters will be the "Spaceship" that proves it.

 

[accessoriesguy]

ATT Cell Phone Towers will implode under that much stress!

 

[edddeduck]

The Apple Marketing Machine convinces people of whatever Steve wants them to believe. Real or not, truthful or not...

...No other company has control over people's minds like Apple.

Who do you think is funding the huge new "Shrine" ...

...Apple's new headquarters will be the "Spaceship" that proves it.

No need for us to put on tinfoil hats and start chanting "Kalimar... Kalimar!" just yet

Apple have slick marketing but I don't think they have moved to the level mind control. It's nothing more than well designed products, attractively packaged and well marketed. Pulling off that trifecta for a single product is not easy (as proved by all the failed products) but when you do the sales and popularity come on their own.

Not saying that Apple don't have dedicated fans but the reason people believe in the Apple marketing is because the products match the hype, when they don't then you will no longer get the reactions you see with products like the iPad. That is not mind control it just a functional and well designed product.

Edwin