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Apple predicted to build cheaper 'iPhone for the masses' - Page 2

post #41 of 120
Quote:
Originally Posted by drewys808 View Post


Yes, you nailed it.  And the only way to address this is to produce a different format, something like a flip phone or small screen phone that appeals to a totally different audience.  It will be functionally constrained, therefore, data constrained, therefore, offered at much lower data costs.  Email, text, voice, iPod, WiFi, limited camera...but no internet browser or gaming.  Hardware cost: $199.

 

Could they tweak the iPod Nano to make it a phone?...possibly.

 

You'd see parents lined up to buy for their kids.  Or adults that are sick/tired of carrying 4" screens around in their pockets.  And yes, poorer people who get a phone that is fully subsidized and with an inexpensive data plan.

That's another possibility that I think would be great for an iPhone Nano.

 

Microsoft sold the KIN for free-$100 (depending on the model) with WIFI and Verizon required NO DATA contract for it, only a voice plan.

post #42 of 120
Quote:
Originally Posted by island hermit View Post

 

"The problem with the current approach of selling outdated handsets for "free" is that the handsets are obviously outdated."  - Blackbook

 

Even with a new form factor wouldn't any iPhone with an A4 chip be considered outdated? By next year they could use an updated 4... that might work.

 

Still not sure how Apple could do it without killing margins... and we all know what will happen to the stock price if there is any mention of lower margins... even if they sell 100 million of them in one quarter.

 

I have to say though, that I think that Cook is more concerned with market share than Jobs... your example, the iPad Mini, is why I think that.

 

 

I have a 3GS, a 4, a 4S, and an iPhone 5 running in the family. The only thing that makes the phone outdated, is there being a newer model. 

post #43 of 120

I still rock an iPod touch and a TracFone. Why? It's not because the iPhone is too expensive. It's because the PLANS ARE (subsidized or not)!

 

Making a cheaper iPhone won't make me buy one. Someone offering a plan that isn't pure, unadulterated extortion would.

post #44 of 120
Quote:
Originally Posted by island hermit View Post

 

"The problem with the current approach of selling outdated handsets for "free" is that the handsets are obviously outdated."  - Blackbook

 

Even with a new form factor wouldn't any iPhone with an A4 chip be considered outdated? By next year they could use an updated 4... that might work.

 

Still not sure how Apple could do it without killing margins... and we all know what will happen to the stock price if there is any mention of lower margins... even if they sell 100 million of them in one quarter.

 

I have to say though, that I think that Cook is more concerned with market share than Jobs... your example, the iPad Mini, is why I think that.

 

The iPad Mini is why the oft rumored iPhone Nano could become a possibility.

 

Honestly the iPad Mini is just old components thrown together in a new form factor and it's a smash success. That's all I expect from an iPhone Nano. Either old iPod or iPhone parts put together. Because it'll be a "new form factor," it won't look or feel outdated to consumers, hence why it would be a success rather than the current obviously 3 year old phones Apple sells for "free".

post #45 of 120

If Apple were to produce a less expensive iPhone, the first thing Wall Street will be yelling about is cannibalization of the higher end model iPhone.  Either way, Apple can't win because there will always be someone who sees some flaw in Apple's decisions.  It's as though only Apple can make mistakes and other companies can't which is absolutely ridiculous.  Currently, Apple has the best financial model of any hardware company around and yet analysts continue to say Apple's financial model is flawed in some way because Apple only sells high-end products to those who can afford them.  Why should Apple sacrifice margins for growth if that's not the company's goal.

 

Every company can't have a goal of having the highest market share, because that wouldn't work, either.  Eventually each company would just have to keep building cheaper and cheaper products and that's not going to be a good financial model.  Apple may not have the best growth model, but the financial model seems very good.  Why Wall Street continues to push growth models over financial models really doesn't make any sense to me.  We wouldn't have any high-end brands if that was the case.

 

What puzzles me is this claim about iPhones no longer being worth the premium price.  Since more consumers are buying them, it would appear they're worth the higher price.  That Android smartphones are just as good or have better features for less money is merely an opinion that hasn't been proven.

post #46 of 120
Quote:
Originally Posted by Tallest Skil View Post

Apple sells a free iPhone. They have zero control over how much plans cost. They have literally done everything that they can possibly do. The ball is in the telecoms' court, both domestically and internationally.

 

The only possible thing that Apple can do in the future is to further lower manufacturing costs to absurd levels, which could potentially (though is not guaranteed to) lower the off-contract purchase price.

 

The reason monthly payments are so high is that the phone is so expensive.  If the phone was cheaper to buy upfront, even for consumers, perhaps more would go to Virgin, or even T-Mobile next year.  

 

Apple can put a good (but not great) screen on a cheaper iPhone, like they did with the iPod Touch up until this year.  They could also use plastic instead of aluminum or glass.  Maybe Apple will never do these things because they only sell "premium" products, but no iPhone is "free," and they do have some control over how much plans cost, even if that meant making a phone cheap enough that consumers could buy it directly and avoid the carriers' subsidization model.  

post #47 of 120
Quote:
Originally Posted by blackbook View Post

 

The iPad Mini is why the oft rumored iPhone Nano could become a possibility.

 

Honestly the iPad Mini is just old components thrown together in a new form factor and it's a smash success. That's all I expect from an iPhone Nano. Either old iPod or iPhone parts put together. Because it'll be a "new form factor," it won't look or feel outdated to consumers, hence why it would be a success rather than the current obviously 3 year old phones Apple sells for "free".

 

Like I said before... I'm not yet convinced either way.  Good arguments for both sides of the fence. If pressed I'd have to side with those thinking it will happen... but I stand at 4.95, with 5 being the middle.

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post #48 of 120
Quote:
Originally Posted by jungmark View Post

Apple needs a cheap iPhone like it needs an entry in the NetBook market. Just like it needs to license OS X and iOS.

 

This. The existing model of keeping the older models available at a lower price (and on lower pricing plans from carriers) is fine. A "cheap iPhone for the masses" who most likely be spec'd virtually the same as an iPhone 4. Why would Apple go to all that expense of development and re-tooling and manufacturing another phone?

 

People should be calling for the carriers in the US to have a "data pricing plan for the masses."

"We're Apple. We don't wear suits. We don't even own suits."
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"We're Apple. We don't wear suits. We don't even own suits."
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post #49 of 120
Originally Posted by shadash View Post
The reason monthly payments are so high is that the phone is so expensive.  If the phone was cheaper to buy upfront, even for consumers, perhaps more would go to Virgin, or even T-Mobile next year.  

 

Their plans cost the same regardless of the phone that you get. Gonna need to try again.

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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post #50 of 120
Quote:
Originally Posted by KazKam View Post

I still rock an iPod touch and a TracFone. Why? It's not because the iPhone is too expensive. It's because the PLANS ARE (subsidized or not)!

 

Making a cheaper iPhone won't make me buy one. Someone offering a plan that isn't pure, unadulterated extortion would.

 

Virgin Mobile - $30/month - 300 minutes, unlimited data (2GB at 4G speeds) and unlimited texts.

T-Mobile - $30/month - 100 minutes, unlimited data (5GB at 4G speeds) and unlimited texts

 

I have the T-Mobile plan (not on an iphone but I would have been willing to spend $400 had the option been there). These pre-paid plans are still more than I am used to paying for similar service in Europe, but US and Canadians are just used to paying more than double for their phones than pretty much every other country in the world.

post #51 of 120

Gotta really admire this Muenster guy. He apparently has a job that pays him to make shit up. Where do I get in on that scam?

 

I can see a future for some interesting tech that Apple might be really good at. The nano wristwatch had all kinds of promise, but that form seems abandoned by AAPL. I'm guessing because they had a business reason to do so. But just because I have some ideas about what I think makes sense isn't a reason people should beleive me if I say "Apple will do this."

 

Bold prediction: Apple will do what it thinks is in its shareholders' best interests. Even Steve-o did that, even if he did window dress it with blah blah blah change the world blah blah blah. Oddly - changing the world is opten in the shareholder's best interests as well.

post #52 of 120
Quote:
Originally Posted by hill60 View Post

 

Really?

 

The rest of the world?

 

Lives on prepaid phones?

 

(Hint:- see my earlier post.)

 

Telco's like money, phones on contracts are good for making it, pull your head out of your US-centric butt and smell the roses.

 

Get out of english speaking worlds where non-smartphones are the norm.   The issue is that MOST of the phones in the world are not not smartphones almost all pre-paids  (if not  throw-in [BOGO]).   The primary reason is the cost of entry.  

 

Telco's like money and would love to sell you a a $30-60 month to month plan with no subsidy back to apple, as that is nearly free money.  They won't turn you away. 

post #53 of 120
Behold, the Apple oikPhone 1smile.gif
post #54 of 120
Quote:
Originally Posted by willb2064 View Post

 

Virgin Mobile - $30/month - 300 minutes, unlimited data (2GB at 4G speeds) and unlimited texts.

T-Mobile - $30/month - 100 minutes, unlimited data (5GB at 4G speeds) and unlimited texts

 

I have the T-Mobile plan (not on an iphone but I would have been willing to spend $400 had the option been there). These pre-paid plans are still more than I am used to paying for similar service in Europe, but US and Canadians are just used to paying more than double for their phones than pretty much every other country in the world.

Yes, I'm seriously considering the Virgin Mobile option. Seems the least expensive option long term. However, still waiting for them to get the iPhone 5.

post #55 of 120

deleted


Edited by MacRulez - 3/15/13 at 9:54am
post #56 of 120
Oh here we are again let's see again
At this time the 5S will be out so

IPhone 5S=========== IPhone mini
$200 with contract.=====Free with contract
$650 with out contract===$100-200 W.O. C.
16 gig.(or 32 at this time)=8 gig.(or 16)
Upgrade to 32 and 64===upgrade to 16, 32 p.
=====$100 + for each upgrade===========
=
4 inch retina display=====3.5 maybe 3by now

8 or more megapixel m.==5 probably
1.2 meg. FaceTime======VGA FaceTime
A7==================A5
Battery improved=======battery probably 1/2
=
This is not a Apple advertising, a IPad mini is a different category
post #57 of 120
Quote:
Originally Posted by Tallest Skil View Post


 

Apple sells a free iPhone. They have zero control over how much plans cost. They have literally done everything that they can possibly do. The ball is in the telecoms' court, both domestically and internationally.

The telecoms subsidize quite a bit of the cost either way. The iphone 5 is $649 unlocked. I'm not sure exactly how much the carriers pay, but they're at least tying up several hundred dollars per customer. In some markets subsidies don't exist, so it's 100% on Apple and their retail partners. If they're trying to appeal to price sensitivity, it would need to be lower off contract. If there was no market there, used phones wouldn't sell. The thing is I don't think they'll do this. It's unlikely that they would hit these price points at their desired margins simply by using older hardware. Things like NAND costs would decrease over time. Their development and setup costs would essentially be paid for at that point. You're left with the issue that it still costs a certain amount to produce each unit and keep the factories . It's also unlikely they'd reverse engineer the design to something usable. It would squeeze an unpleasant area like storage. It would still need to meet certain criteria. Apple tries to keep things on the same version of iOS as much as possible, so any new product would have to conform to that, while being specifically designed as a low cost device. I don't see as much of an advantage for Apple as some others. This is the same kind of thing that happens with televisions and displays. Volume products essentially subsidize the higher margin products, as they need to overcome development costs of certain commodity parts. Apple doesn't seem to have a problem there. I'd be surprised if they went up against hardware sold on thin margins by companies that make things like chips and lcd panels. I'm not the best at describing this. Anyone who wants to add corrections is welcome to do so.

 

Quote:
The only possible thing that Apple can do in the future is to further lower manufacturing costs to absurd levels, which could potentially (though is not guaranteed to) lower the off-contract purchase price.

Off contract pricing would be your budget market, as it encompasses prepaid plans. T-mobile has some plans marked as "value plans". They offer a sort of subsidy option there. $20/month higher for the first 20 months gets you a fairly wide range of phones, although many of them still have some up front cost. The one thing where I'm kind of surprised is the Nexus. The reviews have been pretty good, and it's $350 off contract.

post #58 of 120
Apple could use a less expensive phone - in developing countries, most phones are sold off-contract... In those markets, the iPhone is relatively expensive to crummy Android phones...
post #59 of 120
Quote:
Originally Posted by Gatorguy View Post

I've not seen a breakdown of iPhone sales by model. I've seen guesses, and surveys and analyst estimates. Nothing official tho.

I've only seen analysts estimates too.

Last year when the iPhone 4S was new... it was estimated that the current 4S was 89% of iPhone sales... with the 4 and 3GS taking up the rest.

I can imagine the same situation this year too. The iPhone 5 is hot right now... there's no doubt the iPhone 5 is the overwhelming majority of iPhone sales today.
post #60 of 120

As several people noted, they're not necessarily talking about needing cheaper phones for the first world markets.  (As it turns out, people in those countries usually spring for the more expensive phones anyway, because of the subsidies.)

 

The world needs a good price:  It's the rest of the world that needs and buys more affordable smartphones.  Especially in today's economic climate.  For example, last year over half the phones sold in Greece were the Samsung Mini, which sold from $125-$140 contract free.

 

A $200 device: This year the Samung Mini 2 came out.  It sells for $150-$200 contract free.  Its specs include 3G, GPS, 320x480 3.3" screen, 0.5GB RAM, 4GB Storage + up to 32GB microSD, 800MHz Cortex A5, FM Stereo.   That's better than the the iPhone 3GS in some ways, and is basically the kind of model that the analysts want to see.

 

Subsidies:  Carriers that subsidize are also beginning to push back on that model, some more, some less.  It ties up a lot of their money for almost two years each time a customer upgrades.  (Over a half billion just with AT&T some years.)   Therefore some carriers have stopped offering iPhones subsidies, and Wall Street fears that if more do, sales of the high priced iPhone models will drop radically.  Will it happen?  Who knows, but that's the worry. 

 

There's also the desire to attract first time buyers, who tend to be loyal to the first brand they get.

 

Apple's profit margin:  Currently, Apple's phone has about a 30% net profit margin.  E.g. for an average $640 iPhone, Apple clears $200 after paying for manufacturing, corporate, sales, licenses and taxes.   That's a lot.  The only other maker that ever came really close to that was RIM, who used to get about 28% a few years ago.  

 

So could Apple build and sell a $200 phone with 3GS specs?  Sure, if Samsung can do it, so can Apple.   They'd net less than $50 per phone though, and it's hard to tell if Apple would go for that, unless they simply considered them like iPod Nanos... worth selling lots.


Edited by KDarling - 12/17/12 at 3:04pm
post #61 of 120
Quote:
Originally Posted by blackbook View Post

The problem with the current approach of selling outdated handsets for "free" is that the handsets are obviously outdated. A better example would be the fact that the iPad Mini outsells the iPad 2.

A new iPhone at a low end price point would outsell the current old iPhones and likely wouldn't cannibalize the premium top tier iPhone.

The iPhone 4 is "outdated" only because it has a processor from 2 years ago. In other words... a slow processor.

So... what kind of processor would a cheaper iPhone built today have?

It would be slower, right?

So what's wrong with just using the 2 year old processor that you've already got millions of... and the factories to assemble the iPhone 4 ?

I think Apple's plan to keep selling a certain model for 3 years to wring out every bit of profit is genius.

The other guys are actually spending time and money to make "cheaper" phones.
post #62 of 120
"He believes that this is likely inevitable".


I believe he's likely a poser.

Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

http://m.ign.com/articles/2014/07/16/7-high-school-girls-are-kickstarting-their-awa...

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post #63 of 120
Quote:
Originally Posted by Tallest Skil View Post

 

See, you don't matter because you're still first world.

 

Apple MUST create a $100 off-contract phone for the third world (so that they can then go pay $70 a month for forced data), otherwise they will fail.


Australia's in the first world? Wasn't that some faraway colony filled to the brim with evildoers and bizarre animals?

 

 

Edit: just joking... I know Australia :p

Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

http://m.ign.com/articles/2014/07/16/7-high-school-girls-are-kickstarting-their-awa...

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

http://m.ign.com/articles/2014/07/16/7-high-school-girls-are-kickstarting-their-awa...

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post #64 of 120
Quote:
Originally Posted by allenbf View Post

They ALREADY make a cheaper iPhone.  The 4s is $99.  The 4 is .99 or free.  How can you get cheaper than that?  Most people are fine with last year's phone, especially if they're new to iOS anyway. 

This guy is a fool.
The problem is that this is true ONLY IN SUBSIDIZED MARKETS! Other markets, you pay full price. And those are the markets that are seeing significant growth at the low end. Try to keep up....
post #65 of 120
Quote:
Originally Posted by MacRulez View Post

You don't believe the iPad is a satisfying replacement for a Mac?

 

There goes the "post PC" angle...


Nobody ever said the iPad is a satisfying replacement for a Mac. It's a satisfying solution to the needs of the average current consumer, as evidenced by sales.

However, some people will always need trucks, and for those people, an Austin Mini will not do the job.

 

 

Granted, a Mini does hardly any job at all, which is why it's driven by hipsters and posh ladies.

Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

http://m.ign.com/articles/2014/07/16/7-high-school-girls-are-kickstarting-their-awa...

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

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post #66 of 120
Quote:
Originally Posted by Ken_sanders_aia View Post

Apple could use a less expensive phone - in developing countries, most phones are sold off-contract... In those markets, the iPhone is relatively expensive to crummy Android phones...

and how much much are those android vendors making?

post #67 of 120
Quote:
Originally Posted by lightknight View Post


Nobody ever said the iPad is a satisfying replacement for a Mac. It's a satisfying solution to the needs of the average current consumer, as evidenced by sales.

However, some people will always need trucks, and for those people, an Austin Mini will not do the job.

 

 

Granted, a Mini does hardly any job at all, which is why it's driven by hipsters and posh ladies.

You'd be amazed at what you can do using a sheet of plywood and some angle iron... then just plunk that baby on the top of the Mini!  1biggrin.gif

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post #68 of 120
Quote:
Originally Posted by FreeRange View Post

The problem is that this is true ONLY IN SUBSIDIZED MARKETS! Other markets, you pay full price. And those are the markets that are seeing significant growth at the low end. Try to keep up....

 

700

 

I agree. 385 euros is far from "dirt cheap", or you probably have some gold nuggets in that dirt.

Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

http://m.ign.com/articles/2014/07/16/7-high-school-girls-are-kickstarting-their-awa...

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

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post #69 of 120
Quote:
Originally Posted by jungmark View Post

and how much much are those android vendors making?

I find it funny you use that argument, when people here were using the same argument against the iPad Mini before it came out. Well Apple proved once again they can have a lower price point and decent margins.

post #70 of 120
Quote:
Originally Posted by BUSHMAN4 View Post

Unfortunately Munster has not exactly been the best predicter when it comes to Apple. This is evidenced by his earnings calls, Apple TV call etc. his accuracy rating is somewhere in the mid 40% percentile. He's actually manipulated the stock more than anything else Think about it.
Not sure where you get that 40th percentile number. I follow Apple closely and find him to be one the the most articulate, we'll researched and accurate predictors of all things Apple. Sure, he might have his timing off at times, who doesn't with a stock that is the most manipulated on the market, but in general he is highly accurate.
Edited by FreeRange - 12/17/12 at 3:15pm
post #71 of 120
Quote:
Originally Posted by Tallest Skil View Post

 

If you'd like, join the Union. I help with maps in someone's alternate history timeline, and we're working out US state divisions for you guys. 1wink.gif

 

 

 

Of course, in this timeline, Australia is won from the UK in a war that takes place around 1812, so in 1847 the continent isn't fully settled or stated yet. Heck, you guys still have some territories right now anyway, right?

Oh, yes yes yes please. Can we also have some steampunk Apple gear?

Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

http://m.ign.com/articles/2014/07/16/7-high-school-girls-are-kickstarting-their-awa...

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

http://m.ign.com/articles/2014/07/16/7-high-school-girls-are-kickstarting-their-awa...

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post #72 of 120
Quote:
Originally Posted by tylerk36 View Post

Even if they did and a third world person bought the damn thing they would get so frustrated wit the thing they would have taken it to a pawn shop and sold it for $25.00 walking out frustrated and therefor splurging at Mc Donald's for the whole family on the dollar menu.  Third world people have no concept of technology.  Oops did I say that?
And that in fact is what makes Apple so brilliant - even my 2 year old knows how to operate both the iPhone and our iPad. She initiates FaceTime chats on her own, launches apps, takes photos, launches and plays games, all without any instructions from us.
post #73 of 120
Quote:
Originally Posted by TheOtherGeoff View Post

This.

The rest of the world lives on prepaid phones.  Contracts and subsidies are not the norm.   A $200 off contract phone would be killer.   I don't think it will happen if it's not Siri Enabled, or not 4" retina  (the new std size).   8GB, nonLTE would be possible, but the interface std is set.
Totally wrong! They are buying cheaply made, underpowered Android throw away phones that are most certainly crippled in power, storage and resolution, as well as in the implementation of android. One other key factor that commenters like yourself fail to realize is that their is actually a huge market in theses countries (China included) for used phones so they obviously don't mind "old" technology. The fact that iPhones are so desirous, and have far better resale value certainly helps here as well.
post #74 of 120
I was in Sam's Club today and noticed that I could buy an iPhone 4 for 99 cents with a two-year contract. I passed on it because that contract (Verizon data voice) is $90 per month [$2,160]).
What needs to happen is for carriers to offer pay-as-you-go plans for iPhone and other smart phones. This is what the huge number of people who live hand-to-mouth need. Unfortunately, the carriers are to anal retentive for that.
post #75 of 120
Quote:
Originally Posted by Tallest Skil View Post

 

Their plans cost the same regardless of the phone that you get. Gonna need to try again.

Looks like other people have beat me to this, but you are not correct. Virgin's plans start at $30/month.  T-Mobile is about the same as AT&T and Verizon now, but we'll see what kinds of plans they offer after they abandon the subsidized model next year.  

post #76 of 120

You'll see cheap iPhones when you also see arboreal porcine. 

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #77 of 120
Quote:
Originally Posted by christopher126 View Post

I believe I read that the fastest growing segment is the pre-paid phone. Which is not as profitable for the Telecom businesses as the Contract side. I have entertained chucking my iPhone for a dumb phone and a  $50/mo. expense vs. my Sprint's $93/mo. bill.

But I would end up carrying more "gadgets." E.g., a camera, a GPS unit, and an iPad or MBA. For $43, it just doesn't seem worth it to give up the iPhone.
And now Virgin and Walmart offer an "all you can eat" $30 a month data plan for the iPhone which is looking very attractive! You could even pick up a used 4s on eBay to save money if that is your number one concern.
post #78 of 120
Quote:
Originally Posted by blackbook View Post

I find it funny you use that argument, when people here were using the same argument against the iPad Mini before it came out. Well Apple proved once again they can have a lower price point and decent margins.


 here's the thing, the iPad had room to shrink and still be usuable. The iphone does not. I guess they could "shrink" the screen to 3.5" and use a two y.o. processor but then again that's the iphone 4. If they keep the iphone 4 name, it'll be a "failure" to the "analysts". if they change it to iphone mini, it would be a success to these "analysts".

post #79 of 120

I'm amazed that with all the smart posters on this board, a number of you don't understand the cell phone business outside your narrow experience with subsidized phones available with post-paid plans (ie ATT, Verizon, etc). 

 

People who cannot afford or do not wish to pay $80 - $120 a month (much more for a family) plus the cost of a handset, choose pre-paid plans (no contract) which are substantially less expensive. .

 

For example Virgin Mobile offers a plan with unlimited data, unlimited texting and 300 minutes FOR $35 a MONTH (1200 minutes $45, unlimited minutes $55). However, people on limited budgets who are most likely to go for a prepaid plan may not be able to afford Virgin's iPhone 4S at $450 or iPhone 4 at $350, or $550 for a iPhone 5 when available. These are the people who choose an Android device because many are less expensive, which is more important to them than the iPhone's superior user experience.

 

But even more important to Apple's business are emerging markets such as China, India, the rest of Asia, Africa, and Russia. The majority, the very substantial majority, of mobile users in these locations use pre-paid plans, and pay full price (no subsidies) for a handset. Those people cannot afford a $350 - $550 iPhone. That is why Android, Nokia and Blackberry own nearly 100% of those markets. This is where Apple needs a lower priced iPhone in order to gain a piece of the business. 

 

Apple has followed top line Macs, iPods and iPad with lower priced versions. That's how you gain market share. Later, some of of the people who buy a lower priced Apple product are likely to move up the food chain to a higher priced item.  And the same will be true if Apple offers an unsubsidized, unlocked iPhone Nano for $200. In that price range they can compete with Android and others who offer lower priced phones.

 

BUT, I think Apple may also offer a LARGER iPhone around 4.8 inches. Lets face it, the some large screen Android phones are very popular BECAUSE of the large screens. After all, smart phones are primarily pocket computers. The majority of smart phone users spend much more time texting, surfing and using apps than they do making phone calls. A larger screen offers benefits and an opportunity for Apple to grow sales of the iPhone on the high end.

 

The one argument against a larger screen iPhone is the compatibility of current apps with a larger screen. However, I believe that is an issue that Apple can resolve.

post #80 of 120
Quote:
Originally Posted by allenbf View Post

They ALREADY make a cheaper iPhone.  The 4s is $99.  The 4 is .99 or free.  How can you get cheaper than that?  Most people are fine with last year's phone, especially if they're new to iOS anyway. 

This guy is a fool.

Once again an American who doesn't get subsidies or the situation in the rest of the world.
Quote:
Originally Posted by sennen View Post

This. The existing model of keeping the older models available at a lower price (and on lower pricing plans from carriers) is fine. A "cheap iPhone for the masses" who most likely be spec'd virtually the same as an iPhone 4. Why would Apple go to all that expense of development and re-tooling and manufacturing another phone?

People should be calling for the carriers in the US to have a "data pricing plan for the masses."

This is like saying - and it was an argument made here pre-mini - that the iPad mini wasn't needed because we had last years model. Last years model has less of a cachet than this years cheaper model. I think Apple will have NFC, LTE and a possibly bigger form factor in the iPhone 6 and the iPhone "mini" can then look like the iPod touch with a cell radio. That will be light. Will it cannibalise? Yes, Apple isn't afraid to cannibalise itself.
Quote:
Originally Posted by Michael Scrip View Post

The iPhone 4 is "outdated" only because it has a processor from 2 years ago. In other words... a slow processor.
So... what kind of processor would a cheaper iPhone built today have?
It would be slower, right?
So what's wrong with just using the 2 year old processor that you've already got millions of... and the factories to assemble the iPhone 4 ?
I think Apple's plan to keep selling a certain model for 3 years to wring out every bit of profit is genius.
The other guys are actually spending time and money to make "cheaper" phones.

It's not working. the older model just screams old. A new form factor - however cheap - is always going to be more fashionable.

And let's cut the crap about profit share. Market share matters. If you don't hold up market share profits eventually collapse.
I wanted dsadsa bit it was taken.
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I wanted dsadsa bit it was taken.
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