I don't regard the iPad Mini as ruining a business model despite it being an incredibly cheap Apple computer.
Apple can build a highly quality, low cost product, with the iPad Mini being a prime example. It's all in the execution.
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Low-Cost iPhone to Use Plastic or Hybrid Plastic/Metal Design, Due in Late 2013
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I don't regard the iPad Mini as ruining a business model despite it being an incredibly cheap Apple computer.
Apple can build a highly quality, low cost product, with the iPad Mini being a prime example. It's all in the execution.
Iphone 5 has about 50% gross margin (not net margin, still have to account for engineering, marketing, corporate overhead, tax etc.) and if Apple can produce a "cheap" Iphone in the 300-350 range (to start) with 30% gross margin, they can probably sell 200-300M unit of the "cheap Iphone" in a year. In Fiscal 2012 (4Q11 to 3Q12), Apple sold 37m (4Q11) , 32M, 26M and 26M (3Q12 number include 9 days Iphone 5 sales. Let's say 9m Iphone 5 sales in those 9 days) for a total of about 112m unit of Iphone 3GS+4+4S. If Apple has an "expensve" Iphone line and a "cheap" Iphone line, they can probably sale 90m unit "expensive" Iphone at 50%ish gross margin and 200-300M unit "cheap" Iphone at 30% GM. You guy can figure out the total profit for the two scenario and debate if it is worthwhile for Apple to do a "cheap" Iphone.
Using an old design like 3GS/4 is no go solution. Those parts in 3GS/4 are old parts. Industry already move beyond them and finding old part will cost more money (think about cost of finding an auto part for a 1960 car today). There are plenty of mid-level parts that are pretty cheap and Apple can use them to produce a good quality product. Quite a few $100-$150 Android smartphones are sold in China and other developing countries (that is how Android expand their market share so fast). So putting together a smartphone with 300-350 sales price with 30% gm is doable. The question is whether it will meet Apple's quality standard. And Apple need to rework all the support policy etc. to remove the cost (e.g. shipping product through air during product launch, free exchange, support in Apple store etc. etc. A lot of this service are very expensive to implement and good for premium device but definitely not right for mid to low priced device).
http://www.aliexpress.com/store/group/Low-end-Android-Phone/803232_211115338.html
Good point... however...
The iPhone 4 is still a damn fine phone. If price was truly an issue... the iPhone 4 should be the hot seller.
Is it?
I read a report last year that said 89% of iPhone sales were the then-current iPhone 4S... not the cheaper 4 or 3GS.
I would imagine the vast majority of sales today are the current iPhone 5.
So... even though cheaper options exist... more people seem to go for the current and more expensive model.
I don't think an even more budget model would sway users downmarket.
If they released one that looked like the 3GS but had the power of the 5 then id be up for it. I dont need all that aluminum that scratches. Id put it straight into a Lifeproof or a Otterbox so bring on the plasitic!!!!
Just give me 2 good cameras and future proofed with at least the next few versions of IOS and id be a happy camper. I find since i have a iPad, i tend to use my iPhone for the camera, google maps and to make calls.
These cheaper ones would be perfect for releasing unlocked and contract free. It would be a good way for Apple to attract those who dont want long term contracts or hate the big name carriers.
Just give me 2 good cameras and future proofed with at least the next few versions of IOS and id be a happy camper. I find since i have a iPad, i tend to use my iPhone for the camera, google maps and to make calls.
These cheaper ones would be perfect for releasing unlocked and contract free. It would be a good way for Apple to attract those who dont want long term contracts or hate the big name carriers.
Apple, I realise you are very successful and prob (ok not prob but def) know a hell a lot more than me. But I think this is the wrong move for you by going into the low cost market. The ppl leaving ios are moving to other flagship androids. So just have a larger iphone available around 5 inch with maybe widgets with the extra screen space and you will see old fans going back.
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macrumors 65816
I assume the rumoured prices are with contract..... I'd expect the cheaper iPhone to still be a fairly premium looking and feeling product. I'd be surprised if the SIM free price is too far south of £400.
To all of you who don't understand why this is a thing when you can get iPhone 4 for $0 or 4S for $99. The 4 and 4S are still subsidized phones that are bound to contracts.
This phone will most likely be targeted at "poor" countries or countries where contracts are a rarity. For example China where a very little percent of the population can afford contract free iPhones (because there are no contracts for regular people in China... as far as I know). Or possible even Sweden (where I'm from), where contract free phones are very common among younger people who can't really afford contract free iPhones.
So you will be able to get a unlocked, contract free lesser iPhone for a "cheap" price. IMO this probably exists to battle those cheap-ish android/windows phones like the Galaxy S3 mini, Xperia Go, HTC Desire X, HTC 8S Domino, LG OPTIMUS L9 etc etc.
This phone will most likely be targeted at "poor" countries or countries where contracts are a rarity. For example China where a very little percent of the population can afford contract free iPhones (because there are no contracts for regular people in China... as far as I know). Or possible even Sweden (where I'm from), where contract free phones are very common among younger people who can't really afford contract free iPhones.
So you will be able to get a unlocked, contract free lesser iPhone for a "cheap" price. IMO this probably exists to battle those cheap-ish android/windows phones like the Galaxy S3 mini, Xperia Go, HTC Desire X, HTC 8S Domino, LG OPTIMUS L9 etc etc.
Thatd be because the older models are still aimed at U.S consumers wholl buy them on contracts. When you take away the contract, the iPhone 4S really isnt THAT much cheaper than the 5 to buy up front. A new budget iPhone that is offers a SERIOUS discount over the newer ones will get prepay customers from overseas interested.
Again, you are talking about a 2 years subscription. Outside USA and Canada, the majority uses prepaid devices, and the unlocked iPhone costs $700 on average.
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The iPod touch costs $299, and don't tell me that it is a piece of junk. Just add the antennas it needs and price it at a $350 unlocked. It would sell like hotcakes in prepaid markets the majority of the world.
Apple has lost it!!!!!!
After 13 years + as an Apple devote, I'm moving away. Why? Because Apple seem more focused on style rather than substance, and keen to give the user what they (Apple) want as opposed to what the public actually want.
Take the iMac - which has evolved into a totally needlessly thin machine resulting in a loss of optical drive, still that front chin (couldn't they have lost that in favour of a few mm thickness?) - but the biggest sin, the SD card slot moved to THE BACK of the machine (WTF). I've also lost iWeb, iDVD, a simple mobile me in return for a confusing cloud; but the biggest sin ... the price (stupidly high in the UK and I still have to buy extra's like the optical drive). Don't get me started about OSX getting progressively worse!
Don't also get me started re the prospect of adding a Blue-ray drive and tv tuner to the Mac Mini to make it (potentially) the markets leading, greatest ever, media server (but instead we got more removal of function and a higher price!) We then have lack of support for Apple TV and Powermacs, new iPod mini's that have been designed in a kindergarten, iPod touch's that look great but are silly high in price. Sure, the iPad is spot on ... but afain, look at the price (and no retina display on the mini ... again, WTF!)
And now we come to the iPhone, which in my opinion took a backward step when they lost the smooth curves of the iPhone 3 in favour of the boring brick with dodgy antenna that was the iPhone 4 ... and now the scratch and sniff iPhone 5 with Apple Maps debacle.
I could go on, but having played with a Samsung Galaxy Note at the weekend (and seen clips of a gorgeous new Sony on the horizon), I fear my love for Apple waining; and whilst many years ago I cast aside my fear of moving from PC to Mac, I'm casting aside my worry of moving AWAY from Apple to another brand; because I think Samsung (and others may) have got it right.
With all this being the case and manufacturers moving to larger screens and thinner more curvy bodies, shouldn't Apple be doing likewise; shouldn't Apple be creating a Galaxy S4 and Note 2 killer ... instead of making their products smaller and cheaper; of course us all knowing cheaper for Apple is still much more expensive than any other brand.
I think the tide is turning for Apple (it is as far as I'm concerned) and whereas people rebelled against MS and flocked to Apple, I can see the reverse happening soon. If MS can ditch that fool Balmer and get someone actually able to create a well designed product, they could easily become the new Apple and put the old Apple back in the shadows again.
Its a shame ... but someone at Apple needs to get the company back to the innovative, quality controlled company it once was. I don't care for Ive - designing something beautiful isn't that hard, the key is having partners that can build it; and I've should spend less time focussing on form and sort out function ... and instead of shaving another 2mm off the next iMac, focus on giving me an all new iWeb back, combine the Apple TV into the Mini and give us something great for under the sofa etc etc.
Rant over.
After 13 years + as an Apple devote, I'm moving away. Why? Because Apple seem more focused on style rather than substance, and keen to give the user what they (Apple) want as opposed to what the public actually want.
Take the iMac - which has evolved into a totally needlessly thin machine resulting in a loss of optical drive, still that front chin (couldn't they have lost that in favour of a few mm thickness?) - but the biggest sin, the SD card slot moved to THE BACK of the machine (WTF). I've also lost iWeb, iDVD, a simple mobile me in return for a confusing cloud; but the biggest sin ... the price (stupidly high in the UK and I still have to buy extra's like the optical drive). Don't get me started about OSX getting progressively worse!
Don't also get me started re the prospect of adding a Blue-ray drive and tv tuner to the Mac Mini to make it (potentially) the markets leading, greatest ever, media server (but instead we got more removal of function and a higher price!) We then have lack of support for Apple TV and Powermacs, new iPod mini's that have been designed in a kindergarten, iPod touch's that look great but are silly high in price. Sure, the iPad is spot on ... but afain, look at the price (and no retina display on the mini ... again, WTF!)
And now we come to the iPhone, which in my opinion took a backward step when they lost the smooth curves of the iPhone 3 in favour of the boring brick with dodgy antenna that was the iPhone 4 ... and now the scratch and sniff iPhone 5 with Apple Maps debacle.
I could go on, but having played with a Samsung Galaxy Note at the weekend (and seen clips of a gorgeous new Sony on the horizon), I fear my love for Apple waining; and whilst many years ago I cast aside my fear of moving from PC to Mac, I'm casting aside my worry of moving AWAY from Apple to another brand; because I think Samsung (and others may) have got it right.
With all this being the case and manufacturers moving to larger screens and thinner more curvy bodies, shouldn't Apple be doing likewise; shouldn't Apple be creating a Galaxy S4 and Note 2 killer ... instead of making their products smaller and cheaper; of course us all knowing cheaper for Apple is still much more expensive than any other brand.
I think the tide is turning for Apple (it is as far as I'm concerned) and whereas people rebelled against MS and flocked to Apple, I can see the reverse happening soon. If MS can ditch that fool Balmer and get someone actually able to create a well designed product, they could easily become the new Apple and put the old Apple back in the shadows again.
Its a shame ... but someone at Apple needs to get the company back to the innovative, quality controlled company it once was. I don't care for Ive - designing something beautiful isn't that hard, the key is having partners that can build it; and I've should spend less time focussing on form and sort out function ... and instead of shaving another 2mm off the next iMac, focus on giving me an all new iWeb back, combine the Apple TV into the Mini and give us something great for under the sofa etc etc.
Rant over.
Bad decision. If they can capture market share in both existing and new markets while making a nice profit I don't see why it's such a bad deal. People buy Galaxies even though Samsung offer cheaper alternatives. The same can be applied here, only Apple will have positive margins.
I thought Apple was not after market shares but best quality AND highest margin...
If these 'cheap iPhone' rumors turn out to be true, I'd lose some esteem in Apple.
If these 'cheap iPhone' rumors turn out to be true, I'd lose some esteem in Apple.
Thats some mighty presumtion. Microsofts only problem is not just a few fools at the top. But how Balmer even have a job there after making those hilarious iPhone predicitons back in the day is perplexing.
Not sure balmer is in charge of product design
That was when Steve was in charge, now its a free for all.
Lately its all reminding me of 15 or more years ago... (During the interval when Steve left to set up neXt)
What's next I wonder. Licensing OSX for other hardware vendors? It's not like Apple has never gone down that route either the last time Steve wasn't at the helm....
Apple need to focus on delivering a dedicated focussed product - rather than just keeping shareholders happy with inflated stock prices.
Sitting on billions of unused capital, laziness is easy.
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Lol, an Irish snap
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That was Steve Jobs genius. He built products that were desirable and aspirational. He purposefully avoided the low cost markets.
I'm not saying that a low cost iPhone won't happen. Anything could happen under new management. But if it does then it is another step on the road to Apple becoming just another electronics firm.
Unfortunately, as Yoda said: Once you start down the Dell path, forever will it dominate your destiny, consume you it will.
I don't think you understand what "free" means.... let me guess economics major?
Maybe in the US, with a contract. Here in Sweden where most phones aren't subsidized (if you pay just a small fee up front, the added cost are added to your monthly bills for like 24 months, so in the end you will still have payed more or less the same for as an unlocked one) that's not the case.
The current prices (unlocked, no contract, but read above) for the iphones here are:
Iphone 5 16 GB: $930
Iphone 4S 16 GB: $775
Iphone 4 16 GB: $620
Iphone 3GS 8 GB: $387
Comparison:
Nexus 4 16 GB: $680
Samsung Note 2 16GB: $760
Samsung SIII 16 GB: $680
Samsung SII 16 GB: $460
Xperia V 8G + SD: $700
Xperia U 8G + SD: $290
HTC One X 32 GB: $540
You don't get an iPhone for free. Not any iPhone. If you want to know what any iPhone costs, go to Apple's store and check out the price. You can of course get an iPhone 4 without paying any money at that point, which means the carrier is giving you a loan, for which you are paying huge interest every month for the next 24 months.