iPhone 3GS Will Still Be The Low-End iPhone Even After iPhone 5

[wordoflife]

Contrary to yesterday’s rumors, a new analyst report suggests that the iPhone 3GS will remain the low-end iPhone even after the iPhone 5 drops in September… making it the first iPhone to spend over three years on the market.


“In other words, we believe that the [existing] 3GS will be the low-end iPhone,” BMO Capital’s Keith Bachman writes Tuesday. Monday, Deutshe Bank’s Chris Whitmore told investors a low-end iPhone 4S that was unlocked and pre-paid could help Apple “aggressively penetrate the mid range smart-phone market” as RIM and Nokia are on life-support.

Bachman’s comments appear to bring some sanity back into the discussion. As we intimated Monday, the idea of releasing the iPhone 4S as a $350 unlocked phone just didn’t make sense when Apple is currently selling the unlocked iPhone 4 for nearly $700 each. Still, it’s interesting that the hardware price on the iPhone 4 has yet to come down enough to make it worth Apple selling at a lower price. You can probably thank the Retina Display for that.

via Cult of Mac - Link

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I actually believe this might be true because
1) iOS 5 doesn't completely suck on the 3GS
2) Rumors of a cheaper iPhone - sub $350 range. This is probably cheaper to make because no retina display and it's plastic.
3) This is "a low end" phone compared to what iPhone 5 will presumably be.
4) It uses a standard SIM, not microsim. Makes much more sense for "a low end cheap iPhone for the prepaid"

I honestly think that this is a good idea. It will still give carriers who offer the latest devices the upper hand, but it also allows those on Prepaid to get an iPhone.

Ideas?

 

[skier777]

Im unconvinced. Its unlike apple to keep stuff around thats too far past its prime. They must already be developing iOS6 and they probably want all of the phones that they sell at the time of the iphone5's release to be able to run that. I wouldn't be surprised if the "low-end-iphone" disappeared completely. Especially when putting it in those terms, its not appealing to be walking around with a new, low end, high end luxury phone.

 

[wordoflife]

I'm not sure if you've looked at smartphones in the prepaid market, but they aren't high end. They are just that - prepaid.

This is AT&T's Prepaid smart phone. Likely, it won't be able to be upgraded to the latest version of Android, comes with a 3.2 MP camera, 3.2" screen.

Prepaid phones are not high end ... I don't see the problem

 

[skier777]

The iphone is high end though. Im just speculating, but i feel that it would hurt the iphone brand too much to keep on such old technology. http://www.virginmobile.ca/en/phones/index.html are all examples of prepaid phones. They have some rather new and high end ones. The prepaid maket is not what it used to be (tracfone), its developed into a competitive market especially overseas, so i think the arrival of a good smart phone for the US prepaid market shouldn't be unexpected.