Pegatron to Assemble Low Cost iPhone as Apple Works to Balance Supply Chain

[xofruitcake]

Get a life.

It's a $199 or $99 phone with a contract. No one over 20 years old gives a flying **** what phone you carry. If you think it's a status symbol, then it confirms you're pretty low status and that one costs at least your daily salary.

heh heh, that is because you have never travel outside of US. In place like China, the average salary for an auto worker is about $300 USD a month. And that is middle class salary. And contract work very differently in 3rd world country. They don't pay $70-100 USD a month for data plan. They pay 10-30 USD a months kind of data plan rate and they like to buy their phone and search for best data plan. US consumer are the dumb one letting ATT and Verizon force everyone to pay for high price data plan with the subsidy.

----------

I wonder if Apple could make a low cost iPhone, but make it in America, and sell it for around the same price as a normal phone, cause labor and all.

The short answer is no. The supply chain will dictate where the manufacturing site will be. It is impractical to ship all the componentd from Asia to US (think about a few weeks in the ship and the additional cost of transportation) and then assemble them here. The labor law here is much stricter and the labor cost are a lot higher (think about the health care cost Apple contractor has to pay in US). And our workers expectation of a job is quite different than Asian or Africa labor pool. Even if the contractor pay a very decent wage, they may not be able to attract enough labor because the job is too boring and too repetitive.

----------

At $350-$400, how can it be defined a low cost iPhone?

Also, the iPod touch starts at $299 and it's a jewel, so don't tell me that pricing an iPhone at $350-$400 would be a disaster in terms of hardware quality.

$350-$400 seems low just because it's compared to $649, which is a really high price for such a device.

The build won't be a problem but the profit margin for Apple is going to be problematic. Iphone has 50 to 60% gross margin (come out from document in Samsung trial). Low cost Iphone will have at best 20-30% gross margin.

 

[AppleMark]

To condense your argument down into a sentence: "I didn't buy the iPhone as a status symbol, therefore no one else did"

To condense your argument down into a sentence: "I bought a iPhone under the delusion that it would elevate my status in society and separate me from the throng of the unwashed, how dare Apple even think about pandering to the peasants who cannot currently afford one, [even though it is 'cheap as chips' on most tariff plans] thus damaging the status I think I had."

Sounds a bit sad when you break it down, to the level of your interpretation do you not think? On second thoughts, probably not..

 

[Macist]

Why would Apple want to open up the iPhone to people who can't afford it? Part of the appeal of the iPhone is because its a status symbol. I feel like this is a big mistake.

The guy who cleaned the toilets at work used an iPhone.

 

[vmistery]

The guy who cleaned the toilets at work used an iPhone.

Exactly, we all have our reasons for buying one. I work in IT and most likely get paid more than that person. I use one because over the course of the 2 or 3 years I tend to keep phones I know the iPhone will wear well and be supported better than most other devices, overall I doubt I really spend that much more than I would buying other brands. Hey my release day 3GS still works fine,my sister loves it - thats value.

 

[The Bogeyman]

Pegatron? Watch out, Optimus Prime, your nemesis is coming...

 

[GermanyChris]

Why would Apple want to open up the iPhone to people who can't afford it? Part of the appeal of the iPhone is because its a status symbol. I feel like this is a big mistake.

No.

Are you trying to imply you have never owned ANYTHING in an attempt to make a good impression? You know, you've never bought slightly nicer clothes to look good, or a slighty better than trashy car to make a good impression?

No, my work and superior evaluations speak for me.

Exactly shows the ineptness of the government when it comes to handouts. Smartphone and its accompanying expensive data plans is not a necessity in life. This "people down on their luck" wasting my hard earned money.

Sorry, end of rant..

So we should take away everything from people who are down on their luck? Dignity who needs it

 

[Sedrick]

Get a life.

It's a $199 or $99 phone with a contract. No one over 20 years old gives a flying **** what phone you carry. If you think it's a status symbol, then it confirms you're pretty low status and that one costs at least your daily salary.

Wow, that's pretty harsh. Who pissed in your Cheerios? I qualified my statement with it's not much of a status symbol, but it still is, and who said I bought one for that reason? Merely making an observation. As for the rest of your insults, well, I dare you to speak like that to someone's face. You keyboard warriors are pathetic.

 

[Drunken Master]

Sigh, I want an iPhone made by Megatron.

Robo Pegatron is nothing to sneeze at.

 

[fr33 loader]

So we should take away everything from people who are down on their luck? Dignity who needs it

In which part of my post did I say take everything? Is part of dignity owning a smartphone so that they could update their Facebook or check MacRumors? Big difference between down in luck and laziness/taking advantage of the system. Apparently, they don't need help as they can afford this luxuries.

 

[Shin3r]

Are you trying to imply you have never owned ANYTHING in an attempt to make a good impression? You know, you've never bought slightly nicer clothes to look good, or a slighty better than trashy car to make a good impression?

I know this was directed to someone else but I'll bite. Many people will buy clothes that look good. But only elitists buy products just for status. If Target sells an off brand pair of pants that fit well, I'll wear them. Now, some manufacturers that cost more actually do make a higher quality product, but that does not a status symbol make. The question you are asking here is really irrelevant to the statement you are trying to make.

I would never buy a porsche, etc just to prove I am something more than someone else, and frankly don't associate with those type of people. If I bought a porsche, it would be because I actually like the car.

My concern is, how bad is your self esteem if you have to need things that make you some sort of status symbol? And to be honest, it doesn't work anyway, it's just an illusion in your mind.

 

[SmileyBlast!]

Why would Apple want to open up the iPhone to people who can't afford it? Part of the appeal of the iPhone is because its a status symbol. I feel like this is a big mistake.

Wouldn't it be a bigger mistake to let Lenovo, HTC and Samsung take the entire low end of the market? has a variety of iPods at different price ranges so why not iPhones?

 

[GermanyChris]

In which part of my post did I say take everything? Is part of dignity owning a smartphone so that they could update their Facebook or check MacRumors? Big difference between down in luck and laziness/taking advantage of the system. Apparently, they don't need help as they can afford this luxuries.

Ok so they only acquire these things after they become dependent on a government system..

Got it..

 

[flottenheimer]

Maybe it is easier to "triple down on security" at Pegatron than at Foxconn.

 

[Gigaman]

Sounds like some people are confusing "status symbol" for "icon", but then again, their logic is pretty flawed (assuming they're not in the US or something).

 

[blackhand1001]

Pegatron? Watch out, Optimus Prime, your nemesis is coming...

Ironically, Pegatron is also known as Asus and they make the Transformer Prime lol.

 

[Smallville]

I'm still in favor of a low-price iPhone. I refuse to do cell phone contracts because they're a money pit. I'm also not shelling out $700 for a phone. Now, $350-400 I could justify because I'd likely keep it for at least three years. Just because I have money doesn't mean I shouldn't budget wisely.

 

[ericp99]

I don't think that they should make a lower cost iPhone because it would hurt the "exclusive" feel the iPhone has. Plus, if people want a cheaper iPhone, theres always the 4 and 4S. I picked up my 4S on ebay a while back for less than $400.

 

[Mrbobb]

If they make a cheap phone, they GOTTA markedly differentiate it from the premium iPhone. Give it another name altogether etc. Is like Louis Vuitton suddenly makes bargain luggages.