WSJ: Less Expensive iPhone Could Come as Soon as This Year

[samcraig]

I think the key is, that these phones are for "developing countries". So, we would not see it in Europe, North America, and other developed countries, but in places like South America, Asia and such that price point is an issue.

This makes sense. Selling a cheap iPhone (besides the 4s) in the US, or UK does not.

Aw man - can't Apple just license iOS to one of the cheap asian knockoff companies. They can make money on the iOS and appstore and not even have to manufacture a phone

 

[tdtran1025]

It's this market (low-margin) that Apple needs to compete in, utilizing their advantage in supply chain. China is already rules the sub-$150 market, leaving plenty of meat for the $200-$400 segment. Then we'll have a true picture of Markett share between Android and iOS.

 

[SPUY767]

I think it'd be cool to satisfy those customers with bigger hands and larger tastes.

If you're not in the NBA, you don't have bigger hands than me (11.25 inch span), and my 4" iPhone fits my hands just fine. So did the 3.5" if you feel the need to have a bigger screen, buy a Galaxy Note, and shut up about it already.

 

[kylera]

What I don't get is why a new model needs to be DEVELOPED...when there have been plenty of successful older models, like the 3GS or 4.

Granted, a 3GS and a 4 were premium devices when they first came out, but I dare say those specs match up with low-to-mid-tier modern specs.

 

[krravi]

What I don't get is why a new model needs to be DEVELOPED...when there have been plenty of successful older models, like the 3GS or 4.

3GS is not powerful enough to run today's iOS and there are some features knocked out of 4 as well.

Can't have a old phone competing against the ice cream or gingerbread or sourdough cookie OS from google.

 

[designs216]

I think the key is, that these phones are for "developing countries". So, we would not see it in Europe, North America, and other developed countries, but in places like South America, Asia and such that price point is an issue.

This makes sense. Selling a cheap iPhone (besides the 4s) in the US, or UK does not.

It seems to me that instead of incurring the expense of manufacturing a whole separate model, Apple could more cost effectively sell refurbs or legacy phones.

 

[kjs862]

very different than apple's traditional plan. maybe all the competition has apple rethinking things.

 

[Obese Lobsters]

I could see apple releasing a cheaper iPhone similar to how they released the iPad mini. That is cheaper without sacrificing quality, just sacrifice elsewhere

 

[wolfboy]

In case some people don't get it, The REAL cost of the iPhone is $650-850, and even more in the non-US. This article pretty much implies a $300-400ish unlocked iPhone is coming. This price will capture the market of people that are on prepaid (mainly T-Mobile, which was something like 80% new prepaid activations last year), those that don't want to be tied to a contract, and those outside of the US

 

[lolkthxbai]

Highly Unlikely....

Apple has said it before; changes in screen sizes are not pretty because it would mess with the ecosystem of apps that Apple has created with its iOS appstore.

The "smaller" and "cheaper" references in the reports may just be an iPhone 4S 16GB model that will be priced at $99 w/ Two-year contract. This is to be expected as it falls in line with the way they move their products down the chain.

Think about how the iPad mini's screen size was decided upon. Jony Ive says the screen size was a very important factor to consider because 7" tablets in the market were too small of a screen size to enjoy or be useful and iPad apps would not properly fit in a 7" screen size which would kill the adoption rate of the iPad mini as an iOS devices. The appstore has really been a major advantage of iOS devices so Apple would not release a product with a smaller screen size knowing this.

 

[odia]

Reply From A Third World Country

This is a reply from a poor person from a poor country in the poor 3rd World.

Upfront cost of Cheapest factory unlocked, Brand New iPhones found on Ebay.in
and Ebay.com USA store

What the ELITE in USA has to Pay
iPhone 3GS = $199
iPhone 4 =$350
iPhone 4S =$510
iPhone 5 =$639.99

What the POOR UNWASHED in 3rd WORLD has to Pay
iPhone 3GS = $327
iPhone 4 = $543.5
iPhone 4S = $681.5
iPhone 5 = $793.4


Personally I like Apple products but I like Samsung and NOKIA better, because they price similarly across continents and provide more value for money in terms of better hardware at similar price point

Apple products have the best build hands down, that is the reason in India we buy them too, though we are poor , we CAN and DO buy them at a premium price than the US market.

Even if Apple is thinking of having a low cost iPhone for the masses in 3rd World, people in 3rd world will still buy the at par with US models.

Why?
1. Well because they CAN
2. They are fanboys too
3. Premium iPhone has specs lower than Cheaper Samsung Galaxy S3 or Note 2, what can a cheap iPhone provide, cheaper body?


I hope to get a lot of flames, on a lighter not please watch "john elerick" on Youtube. Thanks

 

[firewood]

What I don't get is why a new model needs to be DEVELOPED...when there have been plenty of successful older models, like the 3GS or 4.

Some of the newer components and less-miniaturized parts are now even less expensive than what was used in the iPhone 3GS.

Would Apple design a device that would undercut its iPhone sales model? Methinks not.

They won't. It will have to be clearly less desirable (less fashionable looking, thicker, slower, etc.) to the vast majority of people who can afford an iPhone 5. So they won't buy the new low-end iDevice. Thus, only completely new customers who can barely afford the cheap new price will bite.

3GS is not powerful enough to run today's iOS and there are some features knocked out of 4 as well.

A 3GS runs iOS 5.1. And a down-market smartphone doesn't need every bell-and-whistle or even very high performance. It just needs to work reliably.

 

[dampfnudel]

Geez - all we need is more of the unwashed masses using Apple products. What is this world coming to? I remember when owning Apple gear made you one of the elite. So sad to see what is happening.

Well, just build a time machine and go back to 2007. Millions of people, their moms and almost all of the teenage girls at the mall have one, that's the reality NOW. Smartphones have become commodities, the new flip phones. If Apple gives us a redesigned iPhone this year, instead of a minor "S" update, it's possible that Apple got the message to step up to stay relevant.

 

[Technarchy]

If Apple does go down this road, I expect them to keep things simple and just take an iPhone 5's guts and stuff it in a polycarbonate shell.

By then Apple will be on the A7, A7X and iPhone 5S/6 to hold down the flagship segment.

 

[firewood]

Aw man - can't Apple just license iOS to one of the cheap asian knockoff companies.

Or maybe have Foxconn manufacture it in China?

 

[crackbookpro]

One of my first assumptions when I first glanced at the iPhone 5 was(more specifically the larger 4" screen)... there is now a market for a 3.5" screen again, or even a tad smaller screen(maybe a Nano???).

Most people don't realize Apple's true ambitions of making the iPhone 5 have a bigger screen - it was really to allow for a smaller/cheaper iPhone to come of market.

This may just be a rumor now, but just wait... this will come to reality within 2 years maybe sooner.

 

[iMikeT]

Define premium these days? On or off subsidy - there are many phones that cost the same or more than the iPhone

It makes no difference as many people still think iPhones are expensive, subsidized or not.

This is not the best example but I have seen many people around me get an iPhone 4 or 4S instead of the iPhone 5 because it was "free" or "the cheapest of the iPhone models".

 

[Born Again]

Geez - all we need is more of the unwashed masses using Apple products. What is this world coming to? I remember when owning Apple gear made you one of the elite. So sad to see what is happening.

You live at home with your mom and making these statements ?

 

[AidenShaw]

It makes no difference as many people still think iPhones are expensive, subsidized or not.

This is not the best example but I have seen many people around me get an iPhone 4 or 4S instead of the iPhone 5 because it was "free" or "the cheapest of the iPhone models".

Walmart scum - they should pay hundreds more for a phone.

</sarcasm>

Seriously, though, for many people the features of a 4S over a 4, or a 5 over a 4S simply do not justify the added price.

 

[iMikeT]

Walmart scum

I agree, Walmart is scum.

Seriously, though, for many people the features of a 4S over a 4, or a 5 over a 4S simply do not justify the added price.

Personally, I think most people simply aren't as technologically inclined as you or I and wouldn't know the difference between all the iPhone models. Most people shop on price alone and don't care how much more feature-rich an iPhone 5 is compared to a 4 or 4S.

An example from personal experience (and in no way the best way to gauge these things)..... My cousin recently got an iPhone 4 after the iPhone 5 was released and when I showed off my 5 to him, he was drooling. I asked why he didn't go with a 5 and said that he didn't know the difference and just went with "the free one".

 

[Obese Lobsters]

Walmart scum - they should pay hundreds more for a phone.

</sarcasm>

Seriously, though, for many people the features of a 4S over a 4, or a 5 over a 4S simply do not justify the added price.

I believe we can also blame this on the subsidized model of purchasing cell phones. If we go by the unsubsidized price of the iPhones I believe many more individuals would choose the iPhone 5 as a $100 increase only amounts to an increase of 18.2% in price from a 4S to 5 and 22.2% increase from the 4 to 4S.

However under the subsidized model the price increases work out to 100% increase from 4S to 5 and 1000000%? increase from 4 to 4S (can't divide 100 by 0).

 

[0029937]

What I don't get is why a new model needs to be DEVELOPED...when there have been plenty of successful older models, like the 3GS or 4.

Granted, a 3GS and a 4 were premium devices when they first came out, but I dare say those specs match up with low-to-mid-tier modern specs.

I could see the iPhone 4 being like the iPad 2, hanging on for a long time. Think about how long the iPad 2 has been selling and is STILL selling: this March will be 2 years. I could see Apple selling the iPhone 4 as a developing market phone in late 2013, early 2014. By then their costs for parts will probably have dropped hugely making it maybe not a huge profit for the company but a good way to get into markets you would never had had a chance with if you tried releasing your latest, greatest device which are premium=expensive.

----------

iPhone 5S comes out which means the older phones get bumped like this:
-iPhone 5 becomes the phone people get if they don't want/need/can afford the newest, premium Apple phone.
-iPhone 4S becomes the cheap ($0 on contract) phone in main markets (N. America, Europe etc.)

-iPhone 4 is now not sold in main markets as Apple only sells 3 phone models at a time. But the iPhone 4 can now be sold in developing countries! What do you guys think?

 

[190991]

of course they will make this. It's the only way for them to get the broad and huge customer base needed to reach further on their apps. And lets not forget maps! The only way for them to come any way near the quality of Nokia and Google is to have huge amounts of users actually "built" the content themselves.

Apple will simply "use" the cheaper folks broaden their apps and maps usage.

 

[maxosx]

smoke & mirrors, smoke & mirrors

Smoke & mirrors brought Apple to where its at via its former CEO

 

[Northgrove]

Yes, seems like a kind of persistent/repeated rumor, but it's still one of those things I'll believe when I see it. It isn't exactly typical of Apple to do something like this. But then again, this is new times at Apple.

Personally, I'm not the guy who think such a move would "cheapen" my iPhone 5 or anything, I'm not that childish. As long as this move wouldn't affect the quality of their premium products, I'm fine with this.