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Rumor: Apple to launch cheaper iPhone with plastic casing, non-Retina display this summer

post #1 of 136
Thread Starter 
Yet another analyst has thrown their hat into the ring, joining others who have heard from sources in Apple's supply chain that the company is gearing up to debut a low-cost iPhone in the coming months..

RBC


Amit Daryanani of RBC Capital Markets issued a note to investors on Friday in which he said he's received word that Apple plans to launch "multiple new phones" in the June-July timeframe this year. Specifically, he expects Apple to launch a next-generation flagship handset, a so-called "iPhone 5S," as well as a more affordable handset.

"The low-end iPhone will have the same 4-inch form factor as the iPhone 5, but will have a plastic casing and no Retina display," he said. "With a lower price point, AAPL will be able to target a growing and important part of the smartphone market (sub-$400 price band)."

Daryanani believes Apple's rumored low-end iPhone will carry lower gross margins than the iPhone 5 or an iPhone 5S. But he also expects that such a product would contribute another $22 billion in revenue and more than $5 in earnings per share in calendar year 2014, which he believes would add $50 of value to Apple's stock price.

RBC


In his projections, the low-end smartphone market has a total addressable size of about 500 million units in calendar 2014. He believes Apple could capture more than 15 percent of that market in the medium term, leading to what he said is a "conservative" estimate of 70 million units.

Daryanani also expects Apple to launch a new iPad mini and full-size iPad this year, while he said a full-fledged Apple television and so-called "iWatch" smart watch are "likely," but the timing of their debut is "unclear."

RBC Capital Markets has retained its "outperform" rating for AAPL stock with a price target of $600.
post #2 of 136
He lost me at "no retina display"..
Edited by Wurm5150 - 3/22/13 at 5:09am
post #3 of 136
Please stop.

It's going to be larger.
It's going to be smaller.

It's going to be plastic.
It's going to be metal.

It's going to be retina.
It's not going to be retina.

It's going to be $299.
It's going to be $199.

No one knows what the heck they're talking about, so why in the world would anyone take any of them seriously? Of course, with 20,000 random rumors covering every end of the spectrum, whatever Apple does will hit one of the rumors - and the person who made that wild-a$$ed guess will claim to be an expert.
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post #4 of 136
Cause that makes sense considering that they're going to require that all apps fill the screen and have retina display beginning May 1st.
post #5 of 136

Has anyone kept a scorecard as to how many anal-ists and pundits have declared their belief in the "small, cheap iPhone"? 1wink.gif

 

While I'm sure Apple didn't start this rumor, I wouldn't be surprised if they were using it to check for information leaks at the HQ.

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post #6 of 136
In before someone says "the iPhone 4 is free, you cants get cheaper than free."

Not in before someone wonders why there are rumors on a rumor site.

We could post it in.
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post #7 of 136
Quote:
Originally Posted by Wurm5150 View Post

He lost me at "no retina display"..

I have no idea on the validity of this rumor - however if the modern Apple is a company which listens to it's market then the success of the mini does tell us something about Retina. Maybe we are all myopic. Or - the other one.

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post #8 of 136
Sorry, there is NO WAY they'll launch a non retina iPhone when the freaking iPod Touch is retina. NO WAY.
post #9 of 136

Can we PLEASE stop this drivel already.

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post #10 of 136
Quote:
Originally Posted by asdasd View Post

In before someone says "the iPhone 4 is free, you cants get cheaper than free."

Not in before someone wonders why there are rumors on a rumor site.

We could post it in.

The "free" iPhone 4 is $449 to buy unlocked without a contract. 

 

If Apple does do a cheaper (by price) iPhone model, it will have to come in much cheaper than that for the target markets. Think somewhere along the lines of $349. 

 

If/when Apple does it for $349, I guess this comment will make me an anal-yst. 

post #11 of 136
Plastic non-retina. Can't apple just refresh the iPhone 3GS?
post #12 of 136
Quote:
Originally Posted by RedGeminiPA View Post

The "free" iPhone 4 is $449 to buy unlocked without a contract. 

 

Yeah, I know. I was pre-quoting someone else, but not agreeing. Maybe I needed a scare quote?

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post #13 of 136
"Daryanani also expects Apple to launch a new iPad mini and full-size iPad this year."

Wow, this guy deserves a raise, what foresight!
post #14 of 136

If it is non-retina it will be way cheaper than $349 I imagine, given that last years retina iPod Touch is $199. My guess is - if they do this - it will be in certain markets only. A lot of people don't see retina. My sister replaced her iPad 1 with an iPad mini. She doesn't see any difference, maybe that is her, or the size of the screen, but she prefers the non-retina. Weights a big factor.

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post #15 of 136
Quote:
Originally Posted by Wurm5150 View Post

He lost me at "no retina display"..

 

Quote:
Originally Posted by THEMAC1NT0SH View Post

Cause that makes sense considering that they're going to require that all apps fill the screen and have retina display beginning May 1st.

 

BINGO!

 

Quote:
Originally Posted by asdasd View Post

I have no idea on the validity of this rumor - however if the modern Apple is a company which listens to it's market then the success of the mini does tell us something about Retina. Maybe we are all myopic. Or - the other one.

 

I take the notice to developers to make sure their apps are Retina and support 16x9 as a sign that there will be no non-Retina class devices in the 2013 lineup. iPhone and iPod touch is already there. With the $399 iPad 4 and the $499 iPad 5, they will not move the non-Retina mini to $229 (though that would be an amazing move and kill the kindle fire market). iPad mini 2 will be Retina, I am guessing, with this news.

post #16 of 136
Quote:
Originally Posted by matt45 View Post

Plastic non-retina. Can't apple just refresh the iPhone 3GS?
I was thinking the same thing.
post #17 of 136
Quote:
Originally Posted by matt45 View Post

Plastic non-retina. Can't apple just refresh the iPhone 3GS?
Then many on this site will claim they copied Samsung's design. lol
post #18 of 136
Quote:
Originally Posted by Wurm5150 View Post

He lost me at "no retina display"..

 

Yeah, except that it would make a ton of sense to do a low cost iPhone without a retina display. 

 

I know what I'm about to say is inconceivable to a vocal minority, but most people cannot perceive the difference between retina and non-retina displays unless they break out a magnifying glass. It's just silly for Apple to increase the cost of a product (both the cost for them to make it and the cost for people to buy it) over a feature that so few people are able to perceive. 

 

I think it makes much more sense to use the retina display as a lever for price discrimination (in the economist use of the term). That is, offer retina and non-retina versions of all products and charge a nice premium for the retina versions. 

post #19 of 136
Quote:
Originally Posted by Blastdoor View Post

 

Yeah, except that it would make a ton of sense to do a low cost iPhone without a retina display. 

 

I know what I'm about to say is inconceivable to a vocal minority, but most people cannot perceive the difference between retina and non-retina displays unless they break out a magnifying glass. It's just silly for Apple to increase the cost of a product (both the cost for them to make it and the cost for people to buy it) over a feature that so few people are able to perceive. 

 

I think it makes much more sense to use the retina display as a lever for price discrimination (in the economist use of the term). That is, offer retina and non-retina versions of all products and charge a nice premium for the retina versions. 

 

Economies of scale.

 

Apple has already used 100's of millions of retina displays, it would probably cost them more to bring in a new, separate line of lower resolution screens.

 

Economics 101.

 

Not going to happen.

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post #20 of 136
Quote:
Originally Posted by waybacmac View Post

Has anyone kept a scorecard as to how many anal-ists and pundits have declared their belief in the "small, cheap iPhone"? 1wink.gif

All of them.
Quote:
Originally Posted by RedGeminiPA View Post

The "free" iPhone 4 is $449 to buy unlocked without a contract. 

If Apple does do a cheaper (by price) iPhone model, it will have to come in much cheaper than that for the target markets. Think somewhere along the lines of $349. 

If/when Apple does it for $349, I guess this comment will make me an anal-yst. 

$349 I can believe. I'm just getting fed up with the people pretending it's going to be $99 to compete with cheapo Android phones.

Quote:
Originally Posted by Blastdoor View Post

Yeah, except that it would make a ton of sense to do a low cost iPhone without a retina display. 

I know what I'm about to say is inconceivable to a vocal minority, but most people cannot perceive the difference between retina and non-retina displays unless they break out a magnifying glass. It's just silly for Apple to increase the cost of a product (both the cost for them to make it and the cost for people to buy it) over a feature that so few people are able to perceive. 

I think it makes much more sense to use the retina display as a lever for price discrimination (in the economist use of the term). That is, offer retina and non-retina versions of all products and charge a nice premium for the retina versions. 

I agree. The fact that Apple requires Retina support is a red herring. They also require apps to support older non-retina phones. So support for non-retina is there. And since we're talking about a hypothetical cheap phone, I think a non-retina would be fine.

At the $299-349 price point, I think it's certainly possible. But if they do that, all the whiners will complain that it's not $99 or $149.
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post #21 of 136

Better release iPhone 3GS again!  This is too awkward.

post #22 of 136
When the 4" iPhone 5 and the 4.9" iPhone+ are released, a reconfigure 3.5" iPhone 4 will be release with lightning connection for $350.
post #23 of 136

After a thousand iterations this rumor get's kind of stale. IMO

1rolleyes.gif

post #24 of 136

The low-cost, plastic, non-Retina iPhone will be the iWatch.

 

Personally I am looking forward to the next iPad. I bought the 1, skipped the 2, bought the 3, skipped the 4... and this year is the 5.

post #25 of 136
Quote:
Originally Posted by Blastdoor View Post

 

Yeah, except that it would make a ton of sense to do a low cost iPhone without a retina display. 

 

I know what I'm about to say is inconceivable to a vocal minority, but most people cannot perceive the difference between retina and non-retina displays unless they break out a magnifying glass. It's just silly for Apple to increase the cost of a product (both the cost for them to make it and the cost for people to buy it) over a feature that so few people are able to perceive. 

 

I think it makes much more sense to use the retina display as a lever for price discrimination (in the economist use of the term). That is, offer retina and non-retina versions of all products and charge a nice premium for the retina versions. 

 

Please! If you yourself have a eyesight disfunction, don't project this problem to the majority of all the other people.

I don't have the best eyesight myself, but as long as I wear my glasses, I see a substantial difference between retina and non retina.

Something that must be true even more so for younger people. And younger people are from my point of view definitely the majority. 

post #26 of 136
Quote:
Originally Posted by jungmark View Post

When the 4" iPhone 5 and the 4.9" iPhone+ are released, a reconfigure 3.5" iPhone 4 will be release with lightning connection for $350.

I hope it is 100 dollars cheaper than that.

post #27 of 136
3Gs making a return😃

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post #28 of 136
I don't believe they will release a non retina iphone, I just don't see it happening. Maybe a cheaper iphone made out of plastic makes sense for emerging markets even though I disagree with Apple coming out with a cheaper product to appeal to certain markets.
post #29 of 136
I suppose anything is possible with a Steve Jobs-less Apple (didn't think the iPad Mini would happen) but these rumors of a cheaper iPhone are absolutely ridiculous....especially this one. Last I checked, the iPhone 4 is being offered for ZERO ($0) DOLLARS with contract ($449 unlocked) and it has a glass/aluminum casing AND a retina display. How much cheaper can you get than $0?....for something that's already better than what's being described by this "analyst".
post #30 of 136
Quote:
Originally Posted by ascii View Post

The low-cost, plastic, non-Retina iPhone will be the iWatch.

 

Personally I am looking forward to the next iPad. I bought the 1, skipped the 2, bought the 3, skipped the 4... and this year is the 5.

Yeah perhaps the iWatch. But will it be cheap? I believe if it is coming, it will be priced reasonable, but not cheap.

 

And yes the iPad 5 is going to be very interesting. 1wink.gif

post #31 of 136

If this phone is launched, low-cost will *not* be its defining feature, that's so very un-Apple. Just because an item costs less doesn't mean that's what it was designed to be, it'd be like saying the mini is Apple's low cost iPad, completely misunderstanding what differentiates the mini from its larger brethren. If the mini had been designed to be low-cost from the outset, it would never have ended up with its most wonderful form factor, it would have been merely "smaller" and very likely with cheaper components. That Apple might be releasing a phone that is cheaper seems to be missing something, like what the essence of the phone is supposed to be and how it is to be differentiated from the iPhone 5/5S.

 

All these rumours, if true, are missing something.

post #32 of 136
Quote:
Originally Posted by jimbo123 View Post

3Gs making a return😃

If at all, let it be the 3GSs please. 


Edited by Rabbit_Coach - 3/22/13 at 6:44am
post #33 of 136
Quote:
Originally Posted by matt45 View Post

Plastic non-retina. Can't apple just refresh the iPhone 3GS?

 

That sounds basically like what they're going to do. But perhaps rebuilt on the inside. Perhaps faster? Newer parts? Other design and implementation changes that enable them to make it more affordable?

 

I mean, shit, the 3GS was "all that" when it came out and for the market Apple is trying to address with a more affordable phone (assuming they are...and they probably are), it is probably just fine.

 

Update, refresh, tweak it a bit. It would be great for many people.

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post #34 of 136
Quote:
Originally Posted by Wurm5150 View Post

He lost me at "no retina display"..


Doesn't seem to make sense and given that the iPhone5's 'retina' display already has the lowest resolution/ppi of any of the 2013 'high end' smartphones, one can't help but wonder just how much lower can they possibly go than the (already less than 720p) 1136 x 640 they currently use? 

 

Seems like this it'd be a pretty strange move on Apple's part that might actually harm its reputation as a maker of 'premium' products.

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post #35 of 136
Cause that makes sense considering that they're going to require that all apps fill the screen and have retina display beginning May 1st.
post #36 of 136

perhaps apple should break up the pro and consumer market on the mobile front much like they used to do with the Mac product line.

 

iPhone/iPad/iPad mini/iPod Pro: Retina display, 32/64/128gb, LTE, Aluminum enclosure, A6, 8mp camera

$699/$599/$429/$299

 

iPhone/iPad/iPad mini/iPod: non-retina, 8/16/32gb, wifi only (4G iPhone), plastic enclosure, A5, 5mp camera

$299/$399/$329/$199

post #37 of 136
A "cheaper" iPhone is directly aimed at the emerging markets of China/India/Asia, where the average cell phone user cannot afford a premium product like the iPhone 5. This is the WHOLE reason why Apple is even considering a "low cost alternative". We don't know if this model will even be available outside of the emerging markets. It's not a bad strategy, either....there are nearly two billion consumers in these markets that could be potential new customers to introduce to the Apple ecosystem....could be worth billions to the company and significantly increase the share price.
post #38 of 136
Quote:
Originally Posted by THEMAC1NT0SH View Post

Cause that makes sense considering that they're going to require that all apps fill the screen and have retina display beginning May 1st.

 

Will they be requiring all apps to be retina display only?

 

Doubtful. More likely: Requiring that all apps are required to support retina display. It will no longer be an option to not support it.

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post #39 of 136
Quote:
Originally Posted by Jordon Eagan View Post

A "cheaper" iPhone is directly aimed at the emerging markets of China/India/Asia, where the average cell phone user cannot afford a premium product like the iPhone 5. This is the WHOLE reason why Apple is even considering a "low cost alternative". We don't know if this model will even be available outside of the emerging markets. It's not a bad strategy, either....there are nearly two billion consumers in these markets that could be potential new customers to introduce to the Apple ecosystem....could be worth billions to the company and significantly increase the share price.

 

Bingo!

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post #40 of 136

Pat, can I buy a vowel.... oh wait, wrong game show.  This is the Rumor Game Show, where everyone throws words into a ring and makes stuff up... ;)  Or is it words on Post-It notes on a wall, and they throw metal tipped darts at them to make a sentence.

 

Serious - I read, and then laugh, and then wait for actual OFFICIAL word from Apple on their products.  When it is announced, then I decide to buy or not and then plan accordingly.  Maybe jaded, but I for one am sick of the the sky is falling stick.  When I see the stuff myself, then I will duck for cover.  

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