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Apple CEO says company "making moves to make things more affordable"

post #1 of 52
Thread Starter 
Apple will move to lower costs and remove barriers to entry for its ecosystem, chief executive Tim Cook said Tuesday, but company will not sacrifice quality to do so -- even for products that will target emerging markets.

Morgan Stanley Data

In an interview at Tuesday's Goldman Sachs Technology Conference, Cook was asked how the company plans to create a great user experience for customers who find the price of the existing iPhone offerings too rich for their blood and must instead rely on prepaid phones and plans.

"This is a popular question. [?] We wouldn't do anything we wouldn't consider a great product," he said. "There are other companies that do that, and that's just not who we are."

Cook pointed to Apple's recent strategy with the iPhone, where its kept the legacy -- but proven -- iPhone 4 and iPhone 4S on the market at reduced prices while rolling out the enhanced iPhone 5, rather than create a cheaper, crippled version of the handset outright. Results of this initiative recently shocked even the company's most informed forecast analysts.

"If you look at what we've done to appeal to people who are more price sensitive, we lowered the price for iPhone 4 and iPhone 4S, and in the December quarter, we didn't have enough supply of iPhone 4, so it surprised us as to the level of demand we had for it."

In the December quarter, we didn't have enough supply of iPhone 4, so it surprised us as to the level of demand we had for it."Cook also recalled how the original iPod carried a $399 price tag and noted how today consumers can buy an iPod Shuffle for $49.

"We are making moves to make things more affordable," he said. "Instead of saying how can we cheapen this iPod to get it lower, we said how can we do a great product, and we were able to do that. The same thing, but in a different concept in some ways."

Similarly, Cook said that his team struggled several years ago to figure out a way to build a cheaper Mac. "We concluded we couldn't do a great product, but what did we do -- we invented iPad," he explained. "Now all of the sudden we have an incredible experience and it starts at $329. Sometimes you can take the issue and you can solve it in different ways."


Cook gave no word on when consumers and investors could expect to see a more affordable iPhone. Piper Jaffray analyst Gene Munster, though, followed Cook's speech with a note to clients in which he predicts such a device will be brought to market sometime during the September quarter of this year.

"We continue to believe Apple will have a cheaper phone product to address the emerging markets, which may or may not be similar to the existing iPhone," Munster said. "Additionally, we note that over time, something like the rumored smart watch could be an option in addressing emerging markets with a lower cost product through a different form factor (iPad as cheap Mac)."
post #2 of 52
(From Apple 2.0) "People also asked why can't you make a $500 Mac? We looked at it and decided we couldn't do it. So what did we do? We made iPad."

I think Tim Cook is leaving the door open to a less expensive mobile device. This could be VERY interesting. Put a mobile phone in a bluetooth device? Thing is, that's going to take some juice. That means it's got to have some minimal heft.

Will the iWatch be a low priced mobile phone??? Couple it with FaceTime and Siri and make it waterproof, drop the price down to a couple hundred bucks (extra for a bluetooth ear bud, of course, but give it a small speaker and microphone so you don't "need" one), and BAM!, you have an inexpensive phone that can interface with all the other Apple products.
post #3 of 52
Logically, eyewear or wristwear continue the trend of shrinking the hardware and multiplying the power of the network and software. Farther off in the future the hardware and the user interface will be (for all practical purposes) completely invisible to the user, yet all information will be readily available to multiply the user's efficiency.

I wonder if anyone at Apple has started to think in terms of multiplying the power of their user's physical abilities with robots or exoskeletons?
Edited by SpamSandwich - 2/12/13 at 12:05pm

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post #4 of 52
One way to reduce production costs is to remove the human element. The more automated the assembly of iPhones et al become the better.
post #5 of 52

Remember when the 4 first came out and Foxconn had to purchase many machines to produce certain parts that were typically only used for prototyping? They've found a way to make enough of the parts since then, but part of me questions if they should just consider repackaging previous year's models into something easier and cheaper to make and compromising a bit on the 'premium' aspect. They'd still be great products in terms of usability, can be considered/marketed as 'new' each year and can help lower prices slightly. An example would be to take the 4/4S, keep the glass screen, but make the back and antenna parts into a plastic unibody and include internal antenna.

 

Has this been covered/suggested on here before?

post #6 of 52

I think that Apple should make things even more expensive. They often can't meet the current demand, and making things cheaper is not going to help.

 

I also think that Apple should concentrate a bit more on it's pro products, and not worry too much about "emerging" markets. Making budget products for "price-sensitive" people is not exactly likely to produce any drool worthy devices, quite the contrary. When I see an Apple keynote, I want to be blown away, I want to be surprised and amazed by what they're presenting on stage. 

post #7 of 52

Better than use cheap components, have an easier way to assemble the products. A big chunk of the iPhone 5 price is due to increased difficulties encountered by Foxconn in building this model. Take iPhone 4 gen components, a cheaper back, a model a tad easier to assemble (a bit more thick), a smaller screen… and you can easily cut the price by a third, maybe more if you're after healthy margins and great market share instead of great margins and healthy market share.

 

I expect an iPhone mini to be released soon to wash over Chinese and Indian markets, and a big screen iPhone for more traditional markets.

post #8 of 52
Quote:
Originally Posted by gwmac View Post

Would be nice to see a Mac Mini at $499 again.

 

Or a $599 model with the option for an AMD 7750 single slot or Nvidia equivalent GPGPU.

post #9 of 52
Quote:
Originally Posted by Apple ][ View Post

I think that Apple should make things even more expensive. They often can't meet the current demand, and making things cheaper is not going to help.

 

I also think that Apple should concentrate a bit more on it's pro products, and not worry too much about "emerging" markets. Making budget products for "price-sensitive" people is not exactly likely to produce any drool worthy devices, quite the contrary. When I see an Apple keynote, I want to be blown away, I want to be surprised and amazed by what they're presenting on stage. 

Did you notice the comment by Cook where he said they couldn't keep up with demand for the iPhone 4?  There's clearly a market for less expensive products, in spite of your hatred for anything that isn't overpriced (and those who use such products).  It's worth tapping into those markets because building a user base is critical for long term profit growth.

post #10 of 52
Originally Posted by AppleInsider View Post

... Apple's chief executive on Tuesday issued a pledge to continue to drive down the cost of buying into the company's ecosystem.

 

It's all about the ecosystem + infrastructure.  Hardware inevitably comes down in price.   In 10 years, Apple will need to begin generating more revenue from iTunes + iCloud and/or enter new markets ripe for innovative (and profitable) disruption.

 

As we've seen for decades, competitors can quickly mash up rough copies of Apple hardware.  It takes them a little longer to bang out software features that crudely mimic Apple's OSes and apps.  But there's no shortcut to building a robust, pervasive, transparent, and simple-to-use infrastructure to hold your ecosystem together.  It takes years to design, plan, build, test, de-bug, rinse, repeat, upgrade.  

 

And, unfortunately for the Apple wannabes, the infrastructure needs to be built first.  Oops.

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post #11 of 52

the devices have reached a point where there is no point to make them thinner and lighter.  While every pundit who evaluates the newest gadget talks first about how thin and light it is compared to its competition, it really has been taken to ridiculous lengths.  Who cares if its a mm thicker, or if it weights another ounce.  Make the new cheaper phones thicker and with a bigger battery, make the camera as good as they are now but without trying to shrink them to such small sizes.  The will be the best of its class, cheaper and allows more people to enjoy the beauty and simplicity of the Apple ecosystem.

post #12 of 52
Quote:
Originally Posted by wakefinance View Post

Did you notice the comment by Cook where he said they couldn't keep up with demand for the iPhone 4?  There's clearly a market for less expensive products, in spite of your hatred for anything that isn't overpriced (and those who use such products).  It's worth tapping into those markets because building a user base is critical for long term profit growth.

 

Yes I did notice that comment about how they couldn't keep up with the demand for the iPhone 4. I believe that that is the point that I was trying to make. There is no doubt that there is a market for less expensive Apple products, I don't deny that. I just hope that these less expensive products do not cause delays or production problems with their other products. Maybe Foxconn should hire 500,000 more Chinese people.

 

If Apple wants to release a cheap iPhone or something, then fine, just as long as they don't neglect their other products, and hopefully they won't abandon their philosophy. It doesn't really bother me if Apple releases a cheap product, as long as they continue to release other products which aren't compromised.

post #13 of 52
"Cheap plastic crap is on the way" said Apple CEO Tim Cook. Black plastic, dumbed down features, crappy battery life. If I wanted that I'd buy a Samsung product.
post #14 of 52
Originally Posted by lkrupp View Post
"Cheap plastic crap is on the way" said Apple CEO Tim Cook. Black plastic, dumbed down features, crappy battery life. If I wanted that I'd buy a Samsung product.

 

So buy a Samsung product. Nothing Cook said even remotely suggested that.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #15 of 52
Quote:
Originally Posted by SockRolid View Post

 

It's all about the ecosystem + infrastructure.  Hardware inevitably comes down in price.   In 10 years, Apple will need to begin generating more revenue from iTunes + iCloud and/or enter new markets ripe for innovative (and profitable) disruption.

 

As we've seen for decades, competitors can quickly mash up rough copies of Apple hardware.  It takes them a little longer to bang out software features that crudely mimic Apple's OSes and apps.  But there's no shortcut to building a robust, pervasive, transparent, and simple-to-use infrastructure to hold your ecosystem together.  It takes years to design, plan, build, test, de-bug, rinse, repeat, upgrade.  

 

And, unfortunately for the Apple wannabes, the infrastructure needs to be built first.  Oops.

 

Great post, and spot-on. This will always be Apple's biggest advantage and ace in the whole. They control the entire ecosystem, from hardware, to software, to apps, to the cloud. Companies like Samsung have no clue what the next version of Android will hold, the best they can do is throw on their skin and a new plastic case. 

Quote:
Originally Posted by lkrupp View Post

"Cheap plastic crap is on the way" said Apple CEO Tim Cook. Black plastic, dumbed down features, crappy battery life. If I wanted that I'd buy a Samsung product.

 

Yes, this is EXACTLY what Cook said. EXACTLY. Except, he actually said quite the opposite. That Apple typically goes for the less obvious solution when lowering pricing, and isn't willing to compromise and cheap out to make a shitty product. It would rather reinvent the product or make something new. God knows how you got what you got from what he said- oh wait, you're one of these "Apple fans" that will make shit up just to kick the company down. Oh, and by the way that 'cheap black plastic phone' existed- under Steve Jobs- it was called the iPhone 3G and 3GS. The highest quality iPhone ever produced, the iPhone 5,  was released under Cook. But don't get facts get in the way of your concern-trolling. 

post #16 of 52
Quote:
Originally Posted by AppleInsider View Post

Apple will move to lower costs and remove barriers to entry for its ecosystem, chief executive Tim Cook said Tuesday, but company will not sacrifice quality to do so -- even for products that will target emerging markets.

And Wall Street says: "Apple's margins will decline" and drive the stock even lower.
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post #17 of 52
Quote:
Originally Posted by Apple ][ View Post

I think that Apple should make things even more expensive. They often can't meet the current demand, and making things cheaper is not going to help.

 

I also think that Apple should concentrate a bit more on it's pro products, and not worry too much about "emerging" markets. Making budget products for "price-sensitive" people is not exactly likely to produce any drool worthy devices, quite the contrary. When I see an Apple keynote, I want to be blown away, I want to be surprised and amazed by what they're presenting on stage. 

'make things more valuable'    increase quality per dollar and function per dollar.

That covers both the low end 'emerging' market, and the high end 'pro' market.

 

Every pro starts out as an amateur.  

 

The gist of this Cook's talk to me was: we are looking at the long game.  we don't worry about last or next quarter.  product lines wax and wane.  Bringing maximum value (across all dimensions of form and function)  to our customer is what we live to do every day, and if they succeed the world will reward us for our efforts.

 

And that effort begins with making our products as affordable as possible to attract the first time buyer, who then becomes a member of the iOS/iTMS ecosystem.

(We sell quality razors at an amazing price, but where we make our money is in the razorblades).

post #18 of 52
Quote:
Originally Posted by Sacto Joe View Post

(From Apple 2.0) "People also asked why can't you make a $500 Mac? We looked at it and decided we couldn't do it. So what did we do? We made iPad."

I think Tim Cook is leaving the door open to a less expensive mobile device. This could be VERY interesting. Put a mobile phone in a bluetooth device? Thing is, that's going to take some juice. That means it's got to have some minimal heft.

Will the iWatch be a low priced mobile phone??? Couple it with FaceTime and Siri and make it waterproof, drop the price down to a couple hundred bucks (extra for a bluetooth ear bud, of course, but give it a small speaker and microphone so you don't "need" one), and BAM!, you have an inexpensive phone that can interface with all the other Apple products.

This reminds me of sports fanatics.  Have you ever noticed a sports fanatic saying what the coach should have done, yet they never do it?  What we THINK they should do and what they actually do are two different things.


You have to always think in terms of how much does it cost to build, is it at the quality level Apple strives for and will they actually sell enough to make it worth while doing.  We have no idea as to what it costs to make this stuff, what technology can and can't do REALISTICALLY, and what the potential sales are. 

 

I'm reading into this whole thing as maybe a wristwatch device that works with iPhones/iPad, etc. might be something interesting.  the whole Google Glasses is something that I think is a BS device.  I think maybe a sub 7inch iPad might be in the works.  I'm going to assume possibly another larger iPhone to choose from.

 

I think it's plausible that Apple might have three sized phones to choose from with updated case design. 

I think it's going to be tough to sell an iPhone at $100 or less that's unlocked and with some cheap monthly rate.  Unless they take the iPhone 4, stick it in a carbon fiber case and charge $200 for it unlocked.  I'm sure the price of the guts has come down considerably, but I'm sure how much money they could make from it since it might cost more to support it for the first year than the amount of profit in it. Remember, each AppleCare phone support call costs money and it comes out of the gross margin for these things.  When a product is priced low, those support calls take away margin very quickly than if it was a higher priced product.  

 

This is problem the PC industry and now the Android industry has problems with.  Too cheap products just don't make enough money to warrant making them.  They should be actually used as a marketing expense to lower their tax rates than to think they can make a profit from them.

post #19 of 52
Quote:
Originally Posted by TheOtherGeoff View Post

And that effort begins with making our products as affordable as possible to attract the first time buyer, who then becomes a member of the iOS/iTMS ecosystem.

(We sell quality razors at an amazing price, but where we make our money is in the razorblades).

 

I see what you're saying, but basically, it seems to me as if you're saying that Apple pretty much wants to conquer the entire world.

 

And if that is the case, then shouldn't Apple be selling their products with almost no margin at all? Or maybe even at a slight loss, like some other companies do? Apple has plenty of cash at hand to make up for any short term loss in margins and profits.

 

If the main issue is locking people in to an eco-system, then an amazing iPhone, iPad and iPod Touch sold for extremely cheap would put an iOS device into the hands of almost every person on the planet, if that's what the end game is.

post #20 of 52
Quote:
Originally Posted by wakefinance View Post

There's clearly a market for less expensive products, in spite of your hatred for anything that isn't overpriced (and those who use such products). 

What a load of condescending tripe. It isn't 'overpriced' if people are willingly buying it, and heck, when Apple can't even produce enough of it (as Apple][ pointed out in his original post).

 

Unless you like to live in the North Korean economy.

post #21 of 52
Quote:
Originally Posted by mickeymantle View Post

the devices have reached a point where there is no point to make them thinner and lighter.  While every pundit who evaluates the newest gadget talks first about how thin and light it is compared to its competition, it really has been taken to ridiculous lengths.  Who cares if its a mm thicker, or if it weights another ounce.  Make the new cheaper phones thicker and with a bigger battery, make the camera as good as they are now but without trying to shrink them to such small sizes.  The will be the best of its class, cheaper and allows more people to enjoy the beauty and simplicity of the Apple ecosystem.

'no point' ?

 

wow.   Reminds me of:

 

"There is no reason anyone would want a computer in their home." -- Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977.

 

When the iPhone is built into my eyeglass frame, or the iPod is just a set of ear buds... or an iPad that weighs less than an equivalent stack of paper, and harvest power from my body heat or motion... that's when I'll say these devices are small enough or thin enough.

 

I do agree, the handset is likely as small as it need get for the current set of functions (phone, display, Camera, game device, typing interface)

Lighter and same strength, or stronger and same weight... the jury is still out.

 

btw,  'cheaper' should never be used.  'more affordable' is the right adjective for what Apple strives to do.

post #22 of 52
Quote:
Originally Posted by AppleInsider 
Cook gave no word on when consumers and investors could expect to see a more affordable iPhone. Piper Jaffray analyst Gene Munster, though, followed Cook's speech with a note to clients in which he predicts such a device will be brought to market sometime during the September quarter of this year.

And if it doesn't happen in September, does he promise to stop mentioning it?

Tim Cook wasn't even saying they are planning to make moves to make products cheaper, he was talking in the present tense after giving examples of what they've done to make products more affordable.

I do think they could improve on the $650 unsubsidised price of the iPhone 5:

http://www.att.com/shop/wireless/devices/apple/iphone/5-16gb-black.html

and it would be nice if they could get the Retina MBPs down a bit in price along with a few of the other Macs. It'll affect margins though and that's really not what the people calling for a cheaper device want.
post #23 of 52
Quote:
Originally Posted by TheOtherGeoff View Post

(We sell quality razors at an amazing price, but where we make our money is in the razorblades).

What is Apple's 'razor' and its 'razorblade'?

post #24 of 52
Quote:
Originally Posted by Sacto Joe View Post

(From Apple 2.0) "People also asked why can't you make a $500 Mac? We looked at it and decided we couldn't do it. So what did we do? We made iPad."

I think Tim Cook is leaving the door open to a less expensive mobile device. This could be VERY interesting. Put a mobile phone in a bluetooth device? Thing is, that's going to take some juice. That means it's got to have some minimal heft.

Will the iWatch be a low priced mobile phone??? Couple it with FaceTime and Siri and make it waterproof, drop the price down to a couple hundred bucks (extra for a bluetooth ear bud, of course, but give it a small speaker and microphone so you don't "need" one), and BAM!, you have an inexpensive phone that can interface with all the other Apple products.

 

 

We have a winner!

 

And for that price it would be unlocked!

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post #25 of 52
Quote:
Originally Posted by Apple ][ View Post

I think that Apple should make things even more expensive. They often can't meet the current demand, and making things cheaper is not going to help.

 

are you serious? Why would you want to raise the barrier to enter the iOS ecosystem? I rather have too much demand than too much supply. The iphone is very popular and will continue to sell like hotcakes. Why price out a certain segment?

 

I don't know how they can make a "low cost" iphone (besides releasing previous years model) and keep the iPhone-ness of it.

post #26 of 52
Quote:
Originally Posted by OriginalG View Post

Remember when the 4 first came out and Foxconn had to purchase many machines to produce certain parts that were typically only used for prototyping? They've found a way to make enough of the parts since then, but part of me questions if they should just consider repackaging previous year's models into something easier and cheaper to make and compromising a bit on the 'premium' aspect. They'd still be great products in terms of usability, can be considered/marketed as 'new' each year and can help lower prices slightly. An example would be to take the 4/4S, keep the glass screen, but make the back and antenna parts into a plastic unibody and include internal antenna.

 

Has this been covered/suggested on here before?

 

Yes!  And there is some marketing advantage and customer appeal -- to repackaging proven, existing (older) technology into a new case and introducing it as a "new" model.  

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post #27 of 52
Quote:
Originally Posted by drblank View Post

Quote:
Originally Posted by Sacto Joe View Post

(From Apple 2.0) "People also asked why can't you make a $500 Mac? We looked at it and decided we couldn't do it. So what did we do? We made iPad."

I think Tim Cook is leaving the door open to a less expensive mobile device. This could be VERY interesting. Put a mobile phone in a bluetooth device? Thing is, that's going to take some juice. That means it's got to have some minimal heft.

Will the iWatch be a low priced mobile phone??? Couple it with FaceTime and Siri and make it waterproof, drop the price down to a couple hundred bucks (extra for a bluetooth ear bud, of course, but give it a small speaker and microphone so you don't "need" one), and BAM!, you have an inexpensive phone that can interface with all the other Apple products.

This reminds me of sports fanatics.  Have you ever noticed a sports fanatic saying what the coach should have done, yet they never do it?  What we THINK they should do and what they actually do are two different things.


You have to always think in terms of how much does it cost to build, is it at the quality level Apple strives for and will they actually sell enough to make it worth while doing.  We have no idea as to what it costs to make this stuff, what technology can and can't do REALISTICALLY, and what the potential sales are. 

 

I'm reading into this whole thing as maybe a wristwatch device that works with iPhones/iPad, etc. might be something interesting.  the whole Google Glasses is something that I think is a BS device.  I think maybe a sub 7inch iPad might be in the works.  I'm going to assume possibly another larger iPhone to choose from.

 

I think it's plausible that Apple might have three sized phones to choose from with updated case design. 

I think it's going to be tough to sell an iPhone at $100 or less that's unlocked and with some cheap monthly rate.  Unless they take the iPhone 4, stick it in a carbon fiber case and charge $200 for it unlocked.  I'm sure the price of the guts has come down considerably, but I'm sure how much money they could make from it since it might cost more to support it for the first year than the amount of profit in it. Remember, each AppleCare phone support call costs money and it comes out of the gross margin for these things.  When a product is priced low, those support calls take away margin very quickly than if it was a higher priced product.  

 

This is problem the PC industry and now the Android industry has problems with.  Too cheap products just don't make enough money to warrant making them.  They should be actually used as a marketing expense to lower their tax rates than to think they can make a profit from them.

 

It is kind of interesting -- when we talk of an unlocked iPhone (iWatch, whatever) selling for $100 or less -- then consider that a carrier like AT&T charges $35 (plus tax) to activate that phone...

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post #28 of 52
Quote:
Originally Posted by Dick Applebaum View Post

It is kind of interesting -- when we talk of an unlocked iPhone (iWatch, whatever) selling for $100 or less -- then consider that a carrier like AT&T charges $35 (plus tax) to activate that phone...

Yeah, but that requires about as much effort as it took me to write this post so it's money well spent.


PS: You owe me $35 for this post.

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post #29 of 52
Quote:
Originally Posted by mdriftmeyer View Post

 

Or a $599 model with the option for an AMD 7750 single slot or Nvidia equivalent GPGPU.

I don't think there's enough profit to make it worthwhile.  At some point, they have to draw a line, they don't want to end up like HP, Dell, Lenovo where their margins are eroded.

 

I think a MacMiniPro would be cool to get the high guts of an iMac inside a small form factor box, but make it a wider footprint than a mini, but the guts of a high end iMac.  I actually prefer that so I can add a monitor and just bring in the box should it require some warranty work.  It's better than dragging the entire screen when it's not needed. Plus, maybe some additional ports on the back.

post #30 of 52
Quote:
Originally Posted by Dick Applebaum View Post

 

It is kind of interesting -- when we talk of an unlocked iPhone (iWatch, whatever) selling for $100 or less -- then consider that a carrier like AT&T charges $35 (plus tax) to activate that phone...

An Apple wristwatch for $99? Look at the Nike wristband.  I'm sure Apple's version would be better and more expensive as it would probably do more.  Although the Nike wristband has it's customer base.

post #31 of 52
Quote:
Originally Posted by jungmark View Post

Quote:
Originally Posted by Apple ][ View Post

I think that Apple should make things even more expensive. They often can't meet the current demand, and making things cheaper is not going to help.

 

are you serious? Why would you want to raise the barrier to enter the iOS ecosystem? I rather have too much demand than too much supply. The iphone is very popular and will continue to sell like hotcakes. Why price out a certain segment?

 

I don't know how they can make a "low cost" iphone (besides releasing previous years model) and keep the iPhone-ness of it.

 

I think an unlocked low-cost [entry] iPhone is doable in the $200-$250 price range.

 

I posted the following to another thread:

_________________________________________________________________________________________________________________________

 

 

Ya' Know...

 

Many people don't wear wristwatches anymore, because they always have a cell phone with them.  Others, like myself, carry a cell phone for the necessary, but infrequent, phone call -- while carrying an iPad for reading, apps, surfing -- all the advantages of the larger screen.

 

Recently, I have been considering what it would be like to carry an iPad Mini with cell phone capabilities -- to eliminate the need to carry the iPhone too.  There are several ways this could work:

  • a BT earphone/microphone that you always wear -- connected to the iPad Mini in your Pack, lap or on the table.
  • holding the iPad Mini to your ear for infrequent private (non speaker) phone calls
  • having a small device about the size of an AppleTV Remote that you hold to your ear

 

None of these is perfect!

 

There might be another alternative that isn't perfect either -- but it is better.

 

I've been playing around with my grandson's iPod Nano 6th generation watch.

 

 

Here it is with the dial on the inside of my wrist (more about that later):

 

 

The watch comes with earbuds, touch screen, RAM, Flash Storage  and iOS -- 8GB for $129 and 16GB for $149 in 2012 when it was discontinued.   It also has a clip on the back which adds ~= 50% to the bulk.  It is interesting to recall that the original 2007 iPhone came in 4GB and 8GB models.

 

http://www.everymac.com/systems/apple/ipod/specs/ipod-6th-generation-6g-multitouch-nano-specs.html

 

 

The BOM for the 8GB Nano was $43 in 2012.

 

 

http://appleinsider.com/articles/10/09/28/materials_cost_for_sixth_gen_ipod_nano_estimated_at_43

 

 

Now, here's the proposition.  What if Apple made a wristwatch, based on the iPad Nano, that included basic cell phone chips + external speaker & microphone?

 

Here is how it might work:  The watch is worn on the inside of your wrist -- to use it as a phone you merely raise you palm to your ear -- just as you would an iPhone.  Except there is no iPhone in your hand -- nothing!  The iPhone is on your wrist and the accelerometer could turn on directional noise-cancelling speaker and microphone so that you could talk with more privacy that you currently have with the iPhone.

 

Try it and see -- your hand fits perfectly!

 

What about dialing, contacts, etc.  Surprisingly, the iPod Nano touch screen would allow a 6 x 4 matrix of keyboard keys that are the same size as the iPhone 5 typewriter kb keys in portrait mode.  The iPad Nano already includes apps for Photos,  iTunes, Radio, Fitness, Clocks and Settings... and easily could have the capability to scroll through/select  contacts.

 

If apple were to include the same cell radios, WiFi/BT that it includes in the iPhone 5,  it would add $34 + $5 == $39 to the existing $43 for a total BOM of  $82.  Lets add $10 for microphone/speaker and larger battery for a total BOM of $92. (This could be reduced by using 3G instead of 4G).

 

2012-09-18_iPhone5.jpg

 

http://www.isuppli.com/Teardowns/News/pages/iPhone5-Carries-$199-BOM-Virtual-Teardown-Reveals.aspx

 

 

So, assumedly, you could buy an unlocked iWatch phone for $200-$250.

 

 

Your next iPhone could be as plain as the watch in front of your face!

 

 

You no-longer need to carry a separate iPhone...

 

 

But it doesn't end there -- when you choose to carry an iPad or iPad Mini (most always for me) the iPad could use the cell radios in the iWatch phone -- no need to spend that extra $129 for iPad data-only cell capability.

 

Go further -- Apple could offer a package including unlocked iWatch phone and iPad Mini for about the same price (plus a little) as the iPad Mini, alone -- say,

 

$429  32GB iPad Mini WiFi

$250  unlocked iWatch phone

--------

$679

 

Package worth $679 sold for $599 -- or $40 more than a $559  32GB  iPad Mini with WiFi + cell data (only)

 

 

In eine donder und blitzen, Apple addresses the emerging smart phone market, prepaid market and shared data costs.

"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #32 of 52
Quote:
Originally Posted by Apple ][ View Post

 

Yes I did notice that comment about how they couldn't keep up with the demand for the iPhone 4. I believe that that is the point that I was trying to make. There is no doubt that there is a market for less expensive Apple products, I don't deny that. I just hope that these less expensive products do not cause delays or production problems with their other products. Maybe Foxconn should hire 500,000 more Chinese people.

 

If Apple wants to release a cheap iPhone or something, then fine, just as long as they don't neglect their other products, and hopefully they won't abandon their philosophy. It doesn't really bother me if Apple releases a cheap product, as long as they continue to release other products which aren't compromised.

 

It could also be that they scaled back iPhone 4 production when the iPhone 5 came out and they do not want to increase production on an older units... 

post #33 of 52

IS this conference on line as a video or a audio recording so we can listen and/or watch it rather than read it?  I like to listen in the background while I do something else.

post #34 of 52
Quote:
Originally Posted by SolipsismX View Post

Quote:
Originally Posted by Dick Applebaum View Post

It is kind of interesting -- when we talk of an unlocked iPhone (iWatch, whatever) selling for $100 or less -- then consider that a carrier like AT&T charges $35 (plus tax) to activate that phone...

Yeah, but that requires about as much effort as it took me to write this post so it's money well spent.


PS: You owe me $35 for this post.

 

 

1)  You won't...

 

2)  I won't...

 

3)  The check is in the mail!   

 

BTW, what are the State, Federal, Excise, Parimutual, HillPac, Wiring America for the Internet...  taxes that apply?

"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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"Swift generally gets you to the right way much quicker." - auxio -

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post #35 of 52
Quote:
Originally Posted by Dick Applebaum View Post


1)  You won't...

2)  I won't...

3)  The check is in the mail!   

BTW, what are the State, Federal, Excise, Parimutual, HillPac, Wiring America for the Internet...  taxes that apply?

I'm sorry but we have a $40 fee for checks which includes paper cut insurance for my imagined employees. The fee for accepting Pay Pal is only $18 but then there is an additional electronic services fee.

It really is amazing companies have found a way for charging for the convenience of paying them.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #36 of 52
Some are thinking the new cheap iPhone might be an iWatch. That would be great, but miniaturizing phone components further than what is already in today's smartphones to fit on your wrist and still be a svelte and compact product, I imagine would be more expensive to produce not cheaper. More likely that if such a product is in the pipeline, and to be released soon - It'll probably be a more simplified device to augment the iPhone like a couple of already available, but bulky and ungainly products.
post #37 of 52
Quote:
Originally Posted by drblank View Post

Quote:
Originally Posted by Dick Applebaum View Post

 

It is kind of interesting -- when we talk of an unlocked iPhone (iWatch, whatever) selling for $100 or less -- then consider that a carrier like AT&T charges $35 (plus tax) to activate that phone...

An Apple wristwatch for $99? Look at the Nike wristband.  I'm sure Apple's version would be better and more expensive as it would probably do more.  Although the Nike wristband has it's customer base


The Nike Fuelband retails for $149.   The iPod Nano 6th Generation retailed for $129 in 2012:  iOS, 8GB Flash, 512M RAM, Touch screen...  That's a lot more beef than the Nike -- at $20 less retail.

 

Also, consider, if it is unlocked -- then it might be an excellent candidate for the first hard goods [non-digital] item to be sold through the iTunes store...  free shipping, pick a color... click, click, click... Shazam!


Edited by Dick Applebaum - 2/12/13 at 2:59pm
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #38 of 52
Quote:
Originally Posted by 1983 View Post

Some are thinking the new cheap iPhone might be an iWatch. That would be great, but miniaturizing phone components further than what is already in today's smartphones to fit on your wrist and still be a svelte and compact product, I imagine would be more expensive to produce not cheaper. More likely that if such a product is in the pipeline, and to be released soon - It'll probably be a more simplified device to augment the iPhone like a couple of already available, but bulky and ungainly products.

 

I think the key is the size of  the cell radio and WiFi/BT chips.  Some of this could be contained in rigid areas where the band meets the watch case.

 

In an entry device you, likely, wouldn't include cameras or anything else that wasn't absolutely necessary for an entry phone.  Those capabilities could be provided by a companion iPod Touch or iPad Mini if when you choose to carry them.

"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
post #39 of 52
He is probably hinting a low cost iPhone, as rumors suspect.
post #40 of 52
Great. Now how about you make the rMBP form factor standard across the line, but separate them into two tiers: one with the same screen as the MBA line, and one with Retina displays. I want the lighter, thinner form factor, but couldn't give less of a damn about super high quality graphics if it raises the buy in price by almost a grand.
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