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France Telecom CEO says iPhone sales threatened by lack of cheaper option

post #1 of 62
Thread Starter 
European consumers are cutting back spending in the face of a fragile economy, and the CEO of one telecom says that could signal tough times ahead for Apple's iPhone.

iMacs


France Telecom Chief Executive Stephane Richard said that his company has seen prices dropping by 25 percent over the past three years, as carriers are forced to provide cheaper plans to lure consumers, speaking with Bloomberg. Along with the preference for cheaper plans, consumers are also beginning to look for cheaper devices.

"We are in a period of changing consumer behavior," Richard said. "Selling a phone for $600 is getting more and more difficult."

France Telecom cut its mobile service plans by 10 percent in 2012, and the carrier expects to cut prices by another 10 to 12 percent in 2013. Currently, its cheapest plan gives unlimited texts and calls plus 3GB of data for about 20 euros ($26) a month. Still, competition is pushing France Telecom's prices lower, and Richard says the market for users that will buy Apple's relatively pricey handset is shrinking.

"There are fewer early adopters, and probably with the next release of the iPhone this will be evident," Richard said, noting that this year's new model may see smaller pre-release lines than have previous iPhones. "Except for a few hundred thousand people who will buy the latest iPhone ? except for that category of people ? the majority of the market will be difficult."

Richard doesn't specifically call for Apple to introduce a cheaper version of its top-selling handset, but his remarks do jibe with a growing sentiment that the iPhone maker should do so in order to sustain growth and market share. The premium smartphone market is thought to have largely matured, and especially so in western countries like France, where consumers face an uncertain economy and are making tough choices when it comes to buying technology.

Apple has been rumored to be working on a low-cost iPhone for some time. Most recently, the company is said to be planning to reveal such a device later this year.

While rumors have pegged a new, contract-free low-end iPhone as a device targeted at emerging markets like China, Richard's comments suggest that a less expensive Apple handset could also find a niche in more traditional markets.
post #2 of 62
Well if the French say it, it must be true!
post #3 of 62

Bloomberg again. :roll eyes:

post #4 of 62
"Still, competition is pushing France Telecom's prices lower"

The real reason for lower prices?

"There are fewer early adopters, and probably with the next release of the iPhone this will be evident,"

And probably?

"may see smaller pre-release lines"

May see?

"The premium smartphone market is thought to have largely matured"

Thought to have?

Everyone seems to want to be that 'guy' that foretells of Apple's doom. Because how dare Apple sell a premium product at a premium price and people stand in long lines for hours (days) to purchase them. We much rather rally behind those that took Apple's innovation and went to market with a 'me too' but cheaper, less desirable product*.

*the only reason why you see cheaper phones doing well is because they are phones. There is a huge majority of people that I deal with that tell me "it's just a phone, why do I need all of that?" then I ask, "well, why did you purchase the Samsung?" "Because it was like $20 more than the flip phone and it has a bigger screen"

So this tell me that the vast majority of people just want a phone as a phone and if they can get one with a big screen (compared to flips) and it not cost too much, I'll buy it. These people (no, I have not talked to millions of them) tell me they are only interested in talk, text, and maybe sharing/viewing some photos. The older crowd is not even interested in text and photos as much as the bigger screen so they can see the buttons.

With the iPad and iPod, you have a different segment with a different higher end need than I want a phone. iPods and iPads are not necessities (I know, heresy) in todays time as a phone is, so people demand more from these products. This is where Apple has always outshines the competition and why they own both of those spaces.

Sorry for the long rant.
post #5 of 62

Jesus Christ. Why is this news? Apple products, historically, have been affected LEAST by the economy of any country. Everyone shrieked at how Apple products were going to become irrelevant during the crash, yet it had absolutely no effect on sales, which increased, while sales of cheaper options dropped. Apple is not going to come out with a product simply to cater to the "economy" or for the economic conditions of a certain region at a certain time. They will make a "cheaper" option if it makes sense and fits with their product line, is differentiated enough from everything else, has a reason to exist, and meets their design goals. Not, "hey the economy is shit we need a cheaper phone"- that has never, EVER benefitted any company. 

post #6 of 62
The only thing Apple has to lose, is a race to the bottom. That is a race that Apple can never, ever, ever win.
post #7 of 62
Please push down more so I can buy more !!
post #8 of 62

negotiation gimmick .... (futile, of course)

post #9 of 62
Quote:
Originally Posted by isaidso View Post

The only thing Apple has to lose, is a race to the bottom. That is a race that Apple can never, ever, ever win.

The concept of a cheaper iPhone - with a more expensive option also available, is odd. If the two have the same features, why would anybody go for the expensive model. emerging market or not? For Apple to create a feature limited iPhone beyond speed and capacity also strikes me as odd and not like Applesque thinking. I would think the differentiation would need to be along the lines already in play - old model lower price. Perhaps an old model can be repackaged in a cheaper enclosure, but I echo what others have been saying, that for Apple to produce anything but a premiere experience will be counter productive in the long run.

 

The iPhone 4S is still a very capable phone for the vast majority of people.

post #10 of 62
Anything to make investors nervous.
I swear Appleinsider has become a troll site by the very folks that run it.
Apple is high end baby and it sells and if you can't afford one then do what rationale folks do and save your damn money until you can afford one.
post #11 of 62
Um, since when is this site jumping on the cult of marketshare bandwagon? Apple doesn't care about marketshare. Profits are all that matter, and every quarter those profits are huge. No, they're not declining.

France is facing a huge recession. They are going broke, don't work, and their unions are stuffing their channels with jargon when they already work a six hour day. Poor governance is killing them, and they are trying to place blame everywhere but with themselves. This telecom leader is a prime example.

I'd say France needs to look at the policies it has in place, and question whether or not it wants to stop inflicting self injury.
post #12 of 62
Quote:
Originally Posted by paxman View Post

The concept of a cheaper iPhone - with a more expensive option also available, is odd. ....

If Apple actually comes out with a throwaway phone, it won't have the same features as the current phones. It will be limited in functionality, feature set, specifications, and (unfortunately) build quality. Apple is not going to produce a low-cost phone that would compete directly with their current iPhones. That would be corporate suicide. 

 

On the other hand, if they came out with an unlocked basic phone with minimum features, I might be tempted to buy one to use when traveling in Canada and Europe (just for emergencies).  

post #13 of 62

The guy is right. It is silly to be self-blinded because of your desires. I am very concerned about the lack of proactivity of Apple's board.

 

A year ago, we were all thinking Apple would sell 60m, even 70m iphones per Q with the arrival of iphone5 (remember, "unstoppable demand"?) . Then, supply issues tried to convince us that it was not a matter of shrinking demand. That may or may not be true; but the real consequence is that the demand, perhaps even because of that lack of supply, end up shrinking. The very same Apple has validated the droid alternatives, leaving low-income markets uncovered, not properly giving the high incomers what they wanted and when they wanted (larger phone, IFC, etc).

 

Now we are waiting forever some action of the management regarding China Mobile (years hearing this story), cheaper phone, larger phone, stock buyback, higher dividend, iTV (at least two years ago the "cracked" this), iRadio... and nothing at all happens except piling cash absurdly; instead we have lower margins, growth stalled, iphone supply issues, imac supply issues, map app problems, execs leaving the company, competitors providing equal or better products at lower prices, iPad mini cannibalizing his big brother, stock downgrades, options blatant manipulation, and the stock in free-fall, with Cook & Partners doing nothing...

 

I give up on Apple.

post #14 of 62
Wait, is France giving up? The "Low cost" iPhone is the 4/4S.
post #15 of 62
Quote:
Originally Posted by mieswall View Post

The guy is right. It is silly to be self-blinded because of your desires. I am very concerned about the lack of proactivity of Apple's board.

A year ago, we were all thinking Apple would sell 60m, even 70m iphones per Q with the arrival of iphone5 (remember, "unstoppable demand"?) . Then, supply issues tried to convince us that it was not a matter of shrinking demand. That may or may not be true; but the real consequence is that the demand, perhaps even because of that lack of supply, end up shrinking. The very same Apple has validated the droid alternatives, leaving low-income markets uncovered, not properly giving the high incomers what they wanted and when they wanted (larger phone, IFC, etc).

Now we are waiting forever some action of the management regarding China Mobile (years hearing this story), cheaper phone, larger phone, stock buyback, higher dividend, iTV (at least two years ago the "cracked" this), iRadio... and nothing at all happens except piling cash absurdly; instead we have lower margins, growth stalled, iphone supply issues, imac supply issues, map app problems, execs leaving the company, competitors providing equal or better products at lower prices, iPad mini cannibalizing his big brother, stock downgrades, options blatant manipulation, and the stock in free-fall, with Cook & Partners doing nothing...

I give up on Apple.

Good, then leave. Oh and who thought Apple would sell 60/70/80 MM iPhones per qtr. I didn't and the majority of posters didn't. 50 MM, maybe but they were close.

You also complained about lower margins. What makes you think a "low cost" iPhone won't affect that?

It's been a whole three years since Apple last innovated! /s
post #16 of 62
Meanwhile in the UK all networks including those owned by France Telecom are putting prices up! This seems like a PR piece for FT price cuts in France
post #17 of 62
Quote:
Originally Posted by jdnc123 View Post

The market will accept lower margins if the top line increases such that the overall notional gross margin dollar amount is larger.  The market doesn't want to sit around and watch margins bleed while Apple does nothing to address top line to offset the margin drop.  

This is why the market sucks. They want a low cost iPhone which will lower margins but want margins to remain the same so Apple needs to raise prices or have a more expensive iPhone. But cheaper will sell in greater numbers than expensive so the margins will fall and canibilize the existing iPhone so margins will fall there as well.
post #18 of 62
Quote:
Originally Posted by rob53 View Post

If Apple actually comes out with a throwaway phone, it won't have the same features as the current phones. It will be limited in functionality, feature set, specifications, and (unfortunately) build quality. Apple is not going to produce a low-cost phone that would compete directly with their current iPhones. That would be corporate suicide. 

 

On the other hand, if they came out with an unlocked basic phone with minimum features, I might be tempted to buy one to use when traveling in Canada and Europe (just for emergencies).  

 

That's just it though, what features could they possibly drop on a cheaper phone?  I've been thinking about this for ages and haven't come up with a good answer.  

 

- they need the app store and the ability to play apps/games on every phone or ... what's the point? marketshare?

- they need basic wireless, bluetooth, cell etc. or again ... what's the point?  

- it's cheaper to use the integrated chip that gives LTE than it is to use the old junk ... and the old junk is available on the old iPhones already anyway. 

- a cheaper plastic housing would only make a slight difference in cost

- lower storage would just hamper the sales of app store stuff ... and lower storage is available on old iPhones already anyhow. 

 

Unless they are making a simple "feature phone" that doesn't do apps at all or only does old iPod apps or something, then I don't get what the point of it is.  Even then, why would they want to make a feature phone?  Maybe, maybe, maybe they are just making a cheap shell that last years's parts could be thrown into instead of continuing to actually sell last year's phone?  

 

Apple tends to surprise so I would never say never, but I don't see any rational argument for a cheaper phone myself.  

post #19 of 62
Quote:
Originally Posted by jungmark View Post

The "Low cost" iPhone is the 4/4S.

In comparison to the newer iPhone it is but it's still expensive. In the US the iPhone 4 from 2010 retails for $450 for 8GB. How much is that same phone in France?

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post #20 of 62
Quote:
Originally Posted by jdnc123 View Post

 

The market will accept lower margins if the top line increases such that the overall notional gross margin dollar amount is larger.  The market doesn't want to sit around and watch margins bleed while Apple does nothing to address top line to offset the margin drop.  

 

For those paying attention, the value of Apple (meaning enterprise value) is about where it was 2 years ago.  Any move up in stock since then has been offset by cash build, so the underlying business hasn't increased in value at all at this point (of course it had).  Probably one of only a handful of companies in the market where no value creation in 2 years.  Focus on making great products is great, but they need to do so in such a fashion that it increases the value of the company.

 

This strikes me as just a load of business-speak baffle-gab.  

 

Steve Balmer, is that you?  1smile.gif

post #21 of 62
Quote:
Originally Posted by SolipsismX View Post


In comparison to the newer iPhone it is but it's still expensive. In the US the iPhone 4 from 2010 retails for $450 for 8GB. How much is that same phone in France?

 

This seems to be also a good argument *against* a low cost iPhone in that they could probably get more marketshare and generate more revenue by simply halving the margin on last years' phone, dropping the price by a hundred or more when bought off-contract, and making it essentially free, on-contract. 

post #22 of 62
Quote:
Originally Posted by Gazoobee View Post

This seems to be also a good argument *against* a low cost iPhone in that they could probably get more marketshare and generate more revenue by simply halving the margin on last years' phone, dropping the price by a hundred or more when bought off-contract, and making it essentially free, on-contract. 

For markets that have such contracts I think that's a great way to go, but others — especially for China, India and upcoming African markets — that may not be the best move for maximizing profits long term.

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post #23 of 62

Here we go again, and this time it's French people whining about cheaper iPhones.

 

Apple needs to resist the temptation to give in to the cheapskates who keep calling for cheaper Apple products. There is a limit as to how cheap Apple can go, and Apple is never going to win the cheap race. 

 

Apple should be concentrating on making new, mind blowing products, and pricing them appropriately. And guess what, not everybody will be able to afford them, that's life. Go get a job or something.

 

Is Apple about making amazing products that are the envy of the entire industry, or is Apple about providing cheap people with cheap products? I know which Apple that I prefer. In closing, screw cheap people, who are a hinder to the advancement of tech.

post #24 of 62
Quote:
Originally Posted by mieswall View Post

The guy is right. It is silly to be self-blinded because of your desires. I am very concerned about the lack of proactivity of Apple's board.

 

A year ago, we were all thinking Apple would sell 60m, even 70m iphones per Q with the arrival of iphone5 (remember, "unstoppable demand"?) . Then, supply issues tried to convince us that it was not a matter of shrinking demand. That may or may not be true; but the real consequence is that the demand, perhaps even because of that lack of supply, end up shrinking. The very same Apple has validated the droid alternatives, leaving low-income markets uncovered, not properly giving the high incomers what they wanted and when they wanted (larger phone, IFC, etc).

 

Now we are waiting forever some action of the management regarding China Mobile (years hearing this story), cheaper phone, larger phone, stock buyback, higher dividend, iTV (at least two years ago the "cracked" this), iRadio... and nothing at all happens except piling cash absurdly; instead we have lower margins, growth stalled, iphone supply issues, imac supply issues, map app problems, execs leaving the company, competitors providing equal or better products at lower prices, iPad mini cannibalizing his big brother, stock downgrades, options blatant manipulation, and the stock in free-fall, with Cook & Partners doing nothing...

 

I give up on Apple.

I don't give up on Apple but...

 

Steve Jobs left Apple once in the 90s and the company shriveled to a rotten core. 

Steve Jobs left Apple for good in 2012 (RIP) and the company is imploding under Tim Cook & Co in the same way.

If the directors don't repair the trouble at the top, ASAP, Apple is destined to shrivel implode to its 1990 levels.

The Apple apologist, cheerleaders, and fanbois on AI aren't doing Apple any favors blindly sitting by as Apple atrophies.

 

I don't give up on Apple but have given up on the blind people on this forum.

post #25 of 62

In related news, sales of gold said to be hurt by lack of a lower cost option. Tiffany said to be test marketing "gold lite" jewelry. 

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post #26 of 62
Quote:
Originally Posted by MJ Web View Post

I don't give up on Apple but...

Steve Jobs left Apple once in the 90s and the company shriveled to a rotten core. 
Steve Jobs left Apple for good in 2012 (RIP) and the company is imploding under Tim Cook & Co in the same way.
If the directors don't repair the trouble at the top, ASAP, Apple is destined to shrivel implode to its 1990 levels.
The Apple apologist, cheerleaders, and fanbois on AI aren't doing Apple any favors blindly sitting by as Apple atrophies.

I don't give up on Apple but have given up on the blind people on this forum.

Know your history. Jobs left in the 80s and died in 2011. Apple had the most profitable year in recent corporate history. Apple failed in the dark ages because they weren't focused. What's the diff between a PM7200 and PM7500? They also weren't selling much and also not making any profit. Now they are practically selling everything the make and getting the lion's share of profit.
post #27 of 62
Quote:
Originally Posted by danv2 View Post


France is facing a huge recession. They are going broke, don't work, and their unions are stuffing their channels with jargon when they already work a six hour day. Poor governance is killing them, and they are trying to place blame everywhere but with themselves. This telecom leader is a prime example.

I'd say France needs to look at the policies it has in place, and question whether or not it wants to stop inflicting self injury.
You should check again the definition of recession because France sure isn't in any, France has less public debt than the US, France is the less unionized country among the OECD nations with 9% of the active population in any union (vs 12% for the US), etc. Try again, maybe with facts this time.
post #28 of 62
Quote:
Originally Posted by paxman View Post

[...] For Apple to create a feature limited iPhone beyond speed and capacity also strikes me as odd and not like Applesque thinking.

 

iPod Shuffle, Nano, Touch. Good, better, best. Cheap, affordable, "Ouch."

 

So there's at least some precedent for that approach in Apple's history.

post #29 of 62
Quote:
Originally Posted by Sensi View Post


You should check again the definition of recession because France sure isn't in any, France has less public debt than the US, France is the less unionized country among the OECD nations with 9% of the active population in any union (vs 12% for the US), etc. Try again, maybe with facts this time.

That's funny, this is from today's news:

 

 

FAILING FRANCE

The dismal French PMI boded ill for the euro zone's No.2 economy for the next quarter at least.

The Markit services purchasing managers' index fell in March for the eighth month running to 41.3 from 43.7 in February, hitting its lowest level since February 2009.

"The very weak support readings for the president (Francois Hollande) suggest it will be very difficult to go ahead with far-reaching structural reforms that are likely to lift productivity growth in the economy anytime soon, said Michels at Citi.

http://www.reuters.com/article/2013/04/04/us-europe-economy-idUSBRE9330E620130404

The socialist in charge of France is finding out that stealing money from people is not as easy as first planned. Many of the rich are leaving the country, after all, who wants to get taxed at 75%? lol.gif What a joke.1smoking.gif

 

And, here's another one:lol.gif

 

France ‘heading into triple-dip recession’

 

http://www.euronews.com/2013/03/22/france-hrecessioneading-into-triple-dip-/

 

 

 
post #30 of 62
Quote:
Originally Posted by mieswall View Post

The guy is right. It is silly to be self-blinded because of your desires. I am very concerned about the lack of proactivity of Apple's board.

 

A year ago, we were all thinking Apple would sell 60m, even 70m iphones per Q with the arrival of iphone5 (remember, "unstoppable demand"?) . Then, supply issues tried to convince us that it was not a matter of shrinking demand. That may or may not be true; but the real consequence is that the demand, perhaps even because of that lack of supply, end up shrinking. The very same Apple has validated the droid alternatives, leaving low-income markets uncovered, not properly giving the high incomers what they wanted and when they wanted (larger phone, IFC, etc).

 

Now we are waiting forever some action of the management regarding China Mobile (years hearing this story), cheaper phone, larger phone, stock buyback, higher dividend, iTV (at least two years ago the "cracked" this), iRadio... and nothing at all happens except piling cash absurdly; instead we have lower margins, growth stalled, iphone supply issues, imac supply issues, map app problems, execs leaving the company, competitors providing equal or better products at lower prices, iPad mini cannibalizing his big brother, stock downgrades, options blatant manipulation, and the stock in free-fall, with Cook & Partners doing nothing...

 

I give up on Apple.

I'll buy your stock

post #31 of 62

Some of you are a little too quick (or maybe just blind) to write off the CEO's comments as "negotiation gimmicks" or with comments like "Good, let the French people save up" and other such nonsense. It's obvious that you are either just intentionally ignorant or have zero knowledge (maybe both) of how sales and to a larger degree, economics, work. Thankfully, Apple does.

 

It's literally a zero sum game. Apple knows this. And Samsung & other Android phones are a decent SECOND choice option. In that market, with price being a factor (which is what the CEO is saying here) then every Android phone that is sold is one less iPhone that is sold. It's basic math. We can discuss VALUE all we want and I'm all for that, I am not interested in a second tier platform and build quality, which is why love my iPhone 5. But not everyone who's shopping for a smartphone looks at it in terms of value, but instead in terms of cost, and will it serve their needs. The answer is, Yes; it does. And yes, it's cheaper.

 

Apple knows this, and they'll address it. As for myself, I believe they will build a less expensive iPhone to serve the market.

post #32 of 62
Quote:
Originally Posted by v5v View Post

 

iPod Shuffle, Nano, Touch. Good, better, best. Cheap, affordable, "Ouch."

 

So there's at least some precedent for that approach in Apple's history.

I think the precedent here is that Apple sells at many price points, but all provide the core service.

 

What's the difference than a 4/4s/5   good/better/best?   All have retina, all can run all (mostly) iOS apps.   All have facetime.   All have gyros/accelerometers, all support 3.5(4)G, and WiFi.

 

I think the precedent is covered.

 

What France Telecom is complaining about is the fact that France Telecom is getting caught in the vise of providing more bandwidth for less price, and still can't attract the big iOS customers (who demand/require higher bulk data) to his carrier because his company doesn't subsidize the phone.   If more people bought the iPhone in France, he'd make more profit, so he wants Apple to make less profit....  yeah.... right.

post #33 of 62
Quote:
Originally Posted by v5v View Post

iPod Shuffle, Nano, Touch. Good, better, best. Cheap, affordable, "Ouch."

So there's at least some precedent for that approach in Apple's history.

The iPod is an MP3 player first. The iPhone is a smartphone first. How can you "dumb" it down and still have the same iOS experience?
post #34 of 62
Quote:
Originally Posted by MJ Web View Post

I don't give up on Apple but...

 

Steve Jobs left Apple once in the 90s and the company shriveled to a rotten core. 

Steve Jobs left Apple for good in 2012 (RIP) and the company is imploding under Tim Cook & Co in the same way.

If the directors don't repair the trouble at the top, ASAP, Apple is destined to shrivel implode to its 1990 levels.

The Apple apologist, cheerleaders, and fanbois on AI aren't doing Apple any favors blindly sitting by as Apple atrophies.

 

I don't give up on Apple but have given up on the blind people on this forum.

 

Steve Jobs died October 5th 2011.  The stock price in the days before he died was around 370 a share.  Even with the pullback the stock is still 15% higher than it was before his death.  Oh and the last quarter of Apple before he died Apple had revenues of 27.28 Billion. The most recent quarter they had revenues of 54.51 Billion.  Their profit margins since Steve Jobs' death have been higher than any other quarter before Steve Job's death except the June 2011 quarter surpassing the profit margin of the quarter June 30 2012 by .4%.  So basically their stock is higher than it ever was under Jobs, their revenues are higher than they ever were under Jobs (with the most recent quarter having revenues double what they were the last quarter before Jobs' death) and their profit margins have exceeded all quarters but one before Jobs' death.  Atrophy my ass. I'd be willing to bet every CEO wishes their company to "implode" by having their revenues double in under 2 years of being on the job and leading the company to be more profitable than it has ever been in its entire history.

Edited by Applelunatic - 4/4/13 at 12:04pm
post #35 of 62
Quote:
Originally Posted by jungmark View Post

The iPod is an MP3 player first. The iPhone is a smartphone first. How can you "dumb" it down and still have the same iOS experience?

 

So what are the fundamentals of a smartphone? Voice, text, web? Media player? Something else?

 

Consider the iPod Touch the equivalent of the current iPhone. The Nano could be a model for a less expensive iPhone. Still a phone and media player, but without Apps.

 

I'm not saying that's what they will or should do, I'm just saying that it's not at all "un-Apple" to offer varying capabilities and price points within a product line. The iPod line is an example of how they already do.

post #36 of 62

I had a cheaper iPhone.  It was called the iPhone 4.  I sold it for $275 on Amazon.  Maybe I should start buying them up and taking them to France.

post #37 of 62
Quote:
Originally Posted by SolipsismX View Post


In comparison to the newer iPhone it is but it's still expensive. In the US the iPhone 4 from 2010 retails for $450 for 8GB. How much is that same phone in France?


since last year, you can buy a no-contract 16GB iPhone 4S for $450 retail from http://www.virginmobileusa.com/shop/cell-phones/iphone-phones/ here in the US as well as a 8GB iPhone 4 for $350...

 

they also have the cheapest/most affordable no-contract rate plans (for which you get an additional $5 off/discount per month) when AUTO-PAY is enabled: http://www.virginmobileusa.com/cell-phone-plans/

post #38 of 62
Quote:
Originally Posted by v5v View Post

So what are the fundamentals of a smartphone? Voice, text, web? Media player? Something else?

Consider the iPod Touch the equivalent of the current iPhone. The Nano could be a model for a less expensive iPhone. Still a phone and media player, but without Apps.

I'm not saying that's what they will or should do, I'm just saying that it's not at all "un-Apple" to offer varying capabilities and price points within a product line. The iPod line is an example of how they already do.

Why would there be an iPhone without Apps? It wouldn't make any sense. The apps are part if the experience. That stripped down phone might a well be a dumb phone.
post #39 of 62
Quote:
Originally Posted by a2gsg View Post


since last year, you can buy a no-contract 16GB iPhone 4S for $450 retail from http://www.virginmobileusa.com/shop/cell-phones/iphone-phones/ here in the US as well as an 8GB iPhone 4 for $350...

 

they also have the cheapest/most affordable rate plans (for which you get an additional $5 off/discount per month) when AUTO-PAY is enabled.

 

I don't think Virgin Moble USA's cellular footprint reaches France, which is the topic at hand.

 

Quote:
Originally Posted by sidste View Post

I had a cheaper iPhone.  It was called the iPhone 4.  I sold it for $275 on Amazon.  Maybe I should start buying them up and taking them to France.

 

We should post a sticky or a footnote in every article like this.  It should say "While you may think the iPhone 4 and 4s are inexpensive, please note that it's heavily subsidized by US carriers.  Not every telecom in the world operates the same way."  Just because you can get the iPhone 4 for free in the US doesn't mean you can elsewhere, and most people don't want a 2 year old phone, they want a current model for less cost.

post #40 of 62
Quote:
Originally Posted by jungmark View Post


Why would there be an iPhone without Apps? It wouldn't make any sense. The apps are part if the experience. That stripped down phone might a well be a dumb phone.

 

Agreed, that arguement is pointless.  The only way to produce a cheaper iPhone would be to use less expensive materials.  It's the only option that I see, anyway.

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