Why it's difficult for Apple inc. to make a cheaper iPhone

[phoenixsan]

I guess....

that is related to the concept/mystic of quality inside Apple, Inc. Cheaper iPhone need cheaper materials. How to sell cheap with good quality? I would say doing the homework of choosing materials of good quality but without the costs of premiums items. The rumored "El Cheapo" iPhone for emergent markets would have a plastic body, if we believe the rumors. But no plastic from soldier toys....

 

[Interstella5555]

Do people ask why Tesla doesn't make cheaper cars or why Sony doesn't make a cheaper version of the PS3? Apple makes the products it makes and sells them at a price they set. Do you see them offering a sub-$1k laptop? No, of course you don't. IF you can't afford something, don't buy it, it's not Apple's fault that America consumers have an insatiable appetite for things they think they need regardless of cost and/or debt.

 

[Abazigal]

I feel that a cheaper iphone would not fit into Apple's business model overall.

Their hardware costs more exactly to subsidise their software. After the costly initial outlay, you get access to a wide array of cheap apps, itunes content, free services like mail, iCloud, imessage and siri (which still costs money to maintain), not to mention the resources poured into developing IOS.

Samsung's flagship phones, the S3 and Note2 aren't really much cheaper than the iphone, and this is with Android as a free OS. Google is more than willing to give android away for free because that simply increases the usage of their services (which in turn means more advertising revenue).

Apple doesn't do advertising, so their primary source of revenue is their high iphone's pricetag. A cheaper iphone means way lower margins, but Apple still spends the same amount maintaining those services. And if they are going to withhold key features, then I may as well go with an android phone with full access to google's cloud services.

 

[colodane]

I really like Apple products. I have an iMac and iPad, both of which I gladly paid for and each of them is much pricier than their competitive products. They were bargains, all things considered.

But I don't have an iPhone. Is it because of Apple's price for the hardware? No, it is because of the outrageous $100 Verizon charges for the "data plan" which includes unlimited text which I never use and unlimited phone minutes of which I would use about 50 per month.

If and when I can buy 2 GB of LTE data per month from Verizon for an iPhone 5 for $40, I would gladly pay $800 for the iPhone. Until then, I sticking with my $35 a month dumb phone and $20 per month 1 GB iPad data plan.

 

[ftaok]

It's been my opinion that competing in the $100 unsub'd market will be the quickest way to kill AAPL. The margins are ridiculously low in that market. The real question is whether Apple is willing to concede the low-end market in developing countries and instead compete with mid-range models ($300 unsub'd).

I suspect a "cheaper" iPhone would be similar to the Nexus4, rather than a Nokia Asha.

 

[jackwills]

Why its difficult for Louis Vuitton to make a cheaper purse?

 

[Danoc]

Most likely, Apple will expand its high end iphone range rather than exploring the low end market.

The previous version of iPhones will serve the entry level market, which is also bringing growth to the high end market by giving more longevity to the devices.