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Rumor: More affordable iPhone will launch alongside Apple's 'iPhone 5S' in July

post #1 of 52
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Suppliers in Apple's supply chain reportedly believe that the company plans to simultaneously announce both a low-cost iPhone along with a premium "iPhone 5S" this June, setting the stage for a July launch.

The details were relayed to analyst Brian White of Topeka Capital Markets, who attended an industry trade show in China this week. There he said he learned from suppliers and vendors working with Apple that a new, lower-priced iPhone is expected to be announced in June alongside a next-generation "iPhone 5S."


A pair of iPhone mini prototype concepts developed by Apple were revealed in its court battles with Samsung.


The claims made by White in a note to investors on Friday contrast with those from Ming-Chi Kuo of KGI Securities, a well-connected insider who reported to AppleInsider on Thursday that Apple is likely to face production problems with its so-called "iPhone 5S," leading to a launch later than June. Specifically, he believes that the device will include a fingerprint sensor embedded below the home button, which will pose a number of technical challenges for the company.Supply chain sources told analyst Brian White they believe Apple will launch a cheaper iPhone with a 4-inch display and plastic casing this summer, likely a June unveiling followed by July launch.

Trade show attendees who spoke with White gave no such indications, however. That led him to report on Friday that he expects the low-cost iPhone to have the same 4-inch display as the current iPhone 5, but to feature a slightly thicker design with a curved back made of plastic instead of metal and glass.

As for the anticipated "iPhone 5S," White said there was a "strong consensus" among suppliers that the device will have slight external modifications, though it is expected to look largely the same as the iPhone 5. Anticipated changes to the exterior include a larger camera and slightly rearranged buttons on the left side of the device.

Like Kuo, White also believes that fingerprint scanning technology will be included with an "iPhone 5S" this year. White believes this functionality will be "the major new feature used to market the iPhone 5S, similar to what Siri was to the iPhone 4S."

The suppliers that White spoke with gave no indication of alternative screen sizes outside of the 4-inch display Apple currently uses for the iPhone 5. That's in contrast with his own research note from earlier this week, which predicted Apple would launch a next-generation iPhone with at least two screen sizes this summer.

On Friday, he said the reason for this disparity is "unclear," but suggested there could be "extra secrecy" from Apple regarding a big-screen iPhone, the likes of which could compete with popular devices like Samsung's Galaxy Note series. Alternatively, he said it's also possible that Apple could be thinking ahead to 2014 and potential changes for a so-called "iPhone 6."

Regardless, White believes it is "inevitable" that Apple will launch an iPhone model with an even bigger display. In his trip to China, he has found that big-screen Android phones are among the most popular handsets, and he believes it would be a mistake for Apple to ignore this market trend.
post #2 of 52
Like Kuo, White also believes that fingerprint scanning technology will be included with an "iPhone 5S" this year. White believes this functionality will be "the major new feature used to market the iPhone 5S, similar to what Siri was to the iPhone 4S."

 

Instead of saying, "HOW THE FRICK COULD THIS USELESS GIMMICK POSSIBLY BE CONSIDERED A 'MAJOR NEW FEATURE'?!" let's try to think of ways it could be.

 

 

I can't think of any.

Originally Posted by Marvin

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Originally Posted by Marvin

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post #3 of 52
Quote:
Originally Posted by AppleInsider View Post

The claims made by White in a note to investors on Friday contrast with those from Ming-Chi Kuo of KGI Securities, a well-connected insider who reported to AppleInsider on Thursday that Apple is likely to face production problems with its so-called "iPhone 5S," leading to a launch later than June. Specifically, he believes that the device will include a fingerprint sensor embedded below the home button, which will pose a number of technical challenges for the company.

Technical challenge? "Below the home button" will indeed be a challange, about the only thing that makes sense here.
I’d rather have a better product than a better price.
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I’d rather have a better product than a better price.
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post #4 of 52

One day Apple is doomed and production is delayed (delayed by what? Since when?)

 

The next day we have 3 iPhone models before july...

 

and here we are, clicking..

post #5 of 52
Apple must deliver a low cost iPhone.
Apple must maintain its high margins.

Which is it, analysts? The alleged low cost iPhone will drive margins down.
post #6 of 52
Quote:


 

AI is posting this photo... whenever they mention about Cheap iPhone.  It is giving wrong signals.  Even though there is a footer sentence that mentions that they are prototypes... it is not good to post these photos whenever cheap iPhone is mentioned.  

 

People are thinking that these are the leaked Cheap iPhone photos.  One of my colleague right here in my office is commenting that cheaper iPhone looks very ugly and he is giving big lectures why the design sucks.  Being, he is American, he should understand the secrecy maintained by Apple and must have understood that they are prototypes. But it is not the case.  I dont know how many people would have mistakenly thought that this is how Cheaper iPhone going to be and look like.  

post #7 of 52
Ok, so I'm supposed to believe that suppliers working with Apple on a new iPhone would leak development plans to a Wall Street analyst? That makes no sense to me, as if Apple found out about it these suppliers most likely would no longer have Apple as a client. How do we know these suppliers aren't feeding him a bunch of BS?
post #8 of 52
Quote:
Originally Posted by PhilBoogie View Post


Technical challenge? "Below the home button" will indeed be a challange, about the only thing that makes sense here.

 

I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.

post #9 of 52
A lower cost, entry level iPhone makes sense for emerging markets like China, India and Brazil. This opens up a pool of hundreds of millions of potential new customers. There is no reason to believe they will offer it in the US, UK, EU or other established markets.
post #10 of 52
Just put a cellular radio in the iPod Touch and the iPod mini and make everyone happy.
post #11 of 52
Quote:
Originally Posted by anonymouse View Post

Quote:
Originally Posted by PhilBoogie View Post

Technical challenge? "Below the home button" will indeed be a challange, about the only thing that makes sense here.

I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.

Thanks. Not my native language, and I expected it to be written 'behind' instead of 'below'. Maybe I'm a bit of a 'Mr. hospital corners'
I’d rather have a better product than a better price.
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I’d rather have a better product than a better price.
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post #12 of 52
Quote:
Originally Posted by anonymouse View Post

 

I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.

If a fingerprint scanner is at all associated with the home button (dumb idea), a problem may be to disallow unwanted presses of the button when attempting a scan. Maintaining a mechanical home button would perhaps mitigate against an errant press, as some force is needed. If they're going this route, it would be interesting to see how a scanner could be embedded into the current physical key. They are not going with redesigned mechanical home button to solve this problem.

 

But what about an optical home button? If they go with an optical button, it would be confusing to users if there is no clear prompt in the relevant app to scan a finger? But if that's the case, wouldn't developers already have been made aware of new APIs and other app updates to make use of this feature at launch of iOS 7 and the new iOS devices?

 

The idea is cool and useful from a security standpoint, I just don't see it happening yet, perhaps 2014. When/if it does happen, I see the sensor being embedded under a portion of the screen, not the home button.

For your sake, I hope you're right.
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For your sake, I hope you're right.
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post #13 of 52
See absolutely no reason for Apple to come up with cheap iPhones. They never did and yet still they're outselling every iClone out there. Really hope they don't do that, seems like lowering their standards. And if that's what they're gonna look like, those hideous things in the picture, yep, they're desperate and doomed. They don't need the low end market.
post #14 of 52
Quote:
Originally Posted by Jordon Eagan View Post

A lower cost, entry level iPhone makes sense for emerging markets like China, India and Brazil. This opens up a pool of hundreds of millions of potential new customers. There is no reason to believe they will offer it in the US, UK, EU or other established markets.

What you are suggesting is a whole other level of fragmentation-not UI fragmentation, mind you, but market fragmentation. I just don't see that at all. I'm not aware of any time in Apple's history when an entire hardware product was excluded from the US market. That would be a PR nightmare. Can you imagine all of the US and European customers that would be livid with Apple not allowing them to purchase a low-cost iPhone? (Not to mention there are plenty of price-sensitive Apple fans here, too.)

 

If they decide to sell a low cost iPhone, and I'm almost certain they will at some point, it will be capable of running iOS 6 smoothly, be LTE capable, will be at or under $400 unsubsidized, and will be marketed globally. 

For your sake, I hope you're right.
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For your sake, I hope you're right.
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post #15 of 52
Quote:
Originally Posted by En Sabah Nur View Post

See absolutely no reason for Apple to come up with cheap iPhones. They never did and yet still they're outselling every iClone out there. Really hope they don't do that, seems like lowering their standards. And if that's what they're gonna look like, those hideous things in the picture, yep, they're desperate and doomed. They don't need the low end market.

 

1. A cheaper phone would not be "lowering their standards". The iPad mini is significantly cheaper than the iPad, yet build quality is still superb. There's room to make a phone below the insane build quality of the iPhone 5, yet still maintaining good quality, by using different materials. They would never compromise the brand by building a piece of shit.  It can be "cheaper" without being "cheap". This concern was articulated for months before the iPad mini, and guess what? It was all unfounded.  Apple did this with the iPod, the iPad, the Mac, and they can do it with the phone. Perhaps it will be instead of selling older models of their phones as they currently do now. 

 

2. The phone will look nothing like whats in that over-used photo, and anyone who believes it might has a few screws loose. 

post #16 of 52

A range of iPhones is both inevitable and desirable. Apple don't make one iPod, they make a range of them, they don't sell one Mac, they sell a range of Macs. They have been slow off the mark expanding the iPhone offering and it's cost them market share so it makes perfect sense to put it right and build a range around the flagship device.

post #17 of 52
Quote:
Originally Posted by TzTerri View Post

Just put a cellular radio in the iPod Touch and the iPod mini and make everyone happy.

I think you meant iPod Touch and the "iPad" Mini. And specifically, you were referring to "voice service";  But yeah... That would do it.

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

 

I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.

Perhaps they should have written "beneath" rather than "below".

post #19 of 52

Will the new phone have enough new features to get people to upgrade, switch, or make their first iPhone purchase?  That's really the only issue that matters and right now it looks like another great product that doesnt offer a compelling reason that people NEED the phone.  Sure it will sell well because a certain percentage of people will be due for an upgrade, others will need their first smart phone, and still others will switch, but this isnt the cavalry riding to the rescue of the share price.  One thing is clear is it takes too long to make minor upgrades.  Clearly you dont want to hurt margins, but offering a 5" or so screen iPhone should have happened a year ago.

post #20 of 52
No, it's "affordable iPhone along with iPhone 5 purple monkey dishwasher." Get the rumor straight.
This gets heavily filtered and embellished each time it is retold. Details are lost, assumptions and conclusions are inserted, and the whole thing is obfuscated by being retold. Of course AppleInsider isn't a journalism site, or else they would be in direct contact with the source of these rumors. But then we can't judge whatever the evidence is for ourselves: we are given only somebody's conclusions, and it's not clear how much is known vs how much is somebody's speculation. Let's say that Apple is buying molded plastic casings roughly the size of an iPhone. Then I would rather hear that rumor than the distilled conclusions that somebody has drawn from that. Who drew the conclusion? Isn't that speculation mixed in? How do we know that Apple isn't making some other device like a plastic cased iPod Touch?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #21 of 52

Anyone know how much "analysts" make? I can easily read forums and regurgitate as a rumor too... pay me!! Analyst by day, Cocoa dev by night. Sounds win win to me. 

 

 

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The reason why they are analysts is because they failed at running businesses.

 

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Quote:
The reason why they are analysts is because they failed at running businesses.

 

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post #22 of 52
I suspect the rumors are based on the fact the existing top iPhones, i.e. 4s and 5 will drop in price on the release of a new model as per usual.
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
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post #23 of 52
Quote:
Originally Posted by emig647 View Post

Anyone know how much "analysts" make? I can easily read forums and regurgitate as a rumor too... pay me!! Analyst by day, Cocoa dev by night. Sounds win win to me. 

I've gone back to Ovaltine at night. 1wink.gif
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
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post #24 of 52

Here's hoping Apple will introduce a redesigned iPhone and not an iPhone 5S.

 

"iPhone" and "iPhone mini" works for me. Plain & simple:

 

(A) a 4" screen for the iPhone

(B) a 3,5" screen for the iPhone mini

post #25 of 52
Quote:
Originally Posted by jungmark View Post

Apple must deliver a low cost iPhone.
Apple must maintain its high margins.

Which is it, analysts? The alleged low cost iPhone will drive margins down.

Not necessarily: isn't that a price point judgement? They can simply have chosen a less costly set of materials and then charge a relative lot for it and actually have HIGHER margins (which has been written is the case with the iPad mini btw). Less profit per unit, true, but a bigger profit percentage (margin) on each sale as I understand it.

 

A cup of coffee that you charge a nickel for that costs a penny to make get's you an 80% margin compared to a latte you charge $5 for that costs $4 in materials..... 80% versus 20%.

 

One reason why I take that calculated  number, alongside "market share" with a heaping tablespoon of salt.

post #26 of 52
A lower cost Iphone makes no sense. The so called emerging markets are already flooded with low cost phones that are soooo cheap they are disposable. Remember them cheap a** flip phones? They still around folks.
If Apple goes down that road it will cheapen the brand.
The Analyst envision a cheap iPhone moving Apple's stock. And that's the trick. Get a cheap a** iPhone, predict it will sell x amount of millions in units and use that to jack up the stock.
Then what do you do when the effects of a cheap iPhone in those so called emerging markets wears off? Hmmmmmmm.
post #27 of 52
Quote:
Originally Posted by Slurpy View Post

1. A cheaper phone would not be "lowering their standards". The iPad mini is significantly cheaper than the iPad, yet build quality is still superb. There's room to make a phone below the insane build quality of the iPhone 5, yet still maintaining good quality, by using different materials. They would never compromise the brand by building a piece of shit.  It can be "cheaper" without being "cheap". This concern was articulated for months before the iPad mini, and guess what? It was all unfounded.  Apple did this with the iPod, the iPad, the Mac, and they can do it with the phone. Perhaps it will be instead of selling older models of their phones as they currently do now. 

The iPad mini was smaller and didn't have retina display. There isn't room for a cheap iPhone to shrink and they shouldn't release an iPhone without retina display.
post #28 of 52

Agree - including this photo is misleading and really has nothing to do with the story.

 

post #29 of 52

Technical challenge will be if all touchscreen acts like an sensor. Will be a real innovation on mobile fingerprint technology!

Imagine the usability of this!

 

I don't wanna put my big and fat fingers on an tiny sensor integrated on Home button. :(

post #30 of 52
Globally, as in not just in the U.S. ::sigh::, Apple likely could add a new (and probably longterm) youth/elder market sector by selling a less expensive iPod Nano-ish iPhone, without taking any sheen off the existing iPhone design and market. Not as if the company will go belly up if 40% profit margins come down to 39. Like many parents, I'm more inclined to get my tween a less expensive nano iPhone than either give over my existing device as a hand-me-down or pay for them to have a new one ... to lose or break. If Apple intros a cheaper iPhone, it would gain new customers in emerging markets; it also would gain new customers in existing markets. Just about anyone would *rather* have the more/most expensive iPhone and probably will when they can afford it, which serves several purposes, all of them good for Apple. The case can be made that the global smartphone market is at the point where Apple ought stop ceding to other manufacturers the $300 entry market segment. iPhones are not luxury products, they are premium products. A lower priced one still is.
post #31 of 52
In my opinion, if there are no big-size iPhones out by next year, it means one of two things:

- Apple failed, it should be a penny stock
- Apple is being "extra-secretive", and doesn't even show its best products to the prying eyes of customers. Wouldn't be secret anymore.


/s

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

 

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post #32 of 52
Quote:
Originally Posted by jungmark View Post

Apple must deliver a low cost iPhone.
Apple must maintain its high margins.

Which is it, analysts? The alleged low cost iPhone will drive margins down.


Apple must deliver a low cost iPhone while maintaining high margins?

 

One solution would be to convince everyone to buy iPhone Classic, like it's 2007 again?

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

 

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

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

 

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

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post #33 of 52
Quote:
Originally Posted by emig647 View Post

Anyone know how much "analysts" make? I can easily read forums and regurgitate as a rumor too... pay me!! Analyst by day, Cocoa dev by night. Sounds win win to me. 


Analyst during the compilation phases :p

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

 

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

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

 

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

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

I've gone back to Ovaltine at night. 1wink.gif

Orphan Annie will jump right out of her little brown shoes when she hears that.

 

 

On the matter of a cheap iPhone... Were Apple to make a cheap iPhone with a narrower screen width so it would be more the shape of a Hershey bar, they could drive the market to smaller phones and upset the whole phablet trend and Samsung would be left sucking air.

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #35 of 52
I have had an iphone 3, 4 and 5 but I think this is now a case of "too little too late". they have lost the edge on the software and the hardware is now nothing to write home about.

probably my last Iphone for a while. its so staid.
post #36 of 52
Originally Posted by nantos View Post
they have lost the edge on the software and the hardware is now nothing to write home about.

 

Absolutely nothing you have said is true in any respect.

 

Go buy something else.

 

its so staid.

 

One less liar, one less problem.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #37 of 52
Quote:
Originally Posted by Tallest Skil View Post

Instead of saying, "HOW THE FRICK COULD THIS USELESS GIMMICK POSSIBLY BE CONSIDERED A 'MAJOR NEW FEATURE'?!" let's try to think of ways it could be.



I can't think of any.

Where's your imagination? It could be used to authenticate your identity for mobile payments and signing into apps, as well as second factor authentication for websites. And surely Apple would provide an API, so developers could use it in other ways. Think about how it could be used in conjunction with apps that act as control panels to other devices or that use the lightening connector. Unlock your house door with a finger scan on your iPhone. Disable your car alarm. There's a lot of possibilities with some imagination.
post #38 of 52
Originally Posted by WhciR View Post
Where's your imagination?


Trying to come up with a way of pitching it as a "major new feature". None of that is "major". It's just additions to what is already there.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #39 of 52
Quote:
Originally Posted by Tallest Skil View Post


Trying to come up with a way of pitching it as a "major new feature". None of that is "major". It's just additions to what is already there.

I see what you're saying now. I think that's a matter of perspective and marketing will have a lot in determining whether it's perceived as major or not. If developers jump on board I think it could be major because its a differentiator when compared to other phones.
post #40 of 52
Originally Posted by WhciR View Post
I think that's a matter of perspective and marketing will have a lot in determining whether it's perceived as major or not.

 

Right.


I mean, I can definitely see it being big in authentication… of purchases. Maybe PassBook will become the digital wallet I imagined it would have been initially. Take a picture of the UPC/QR code on a product on the shelf (and maybe this will get UPC kicked off products in favor of QR), put it in your shopping cart, walk to where the cash registers used to be (mommy, what's a cashier?), bag your stuff up (leave in a bin what you decided not to buy; the former cashiers now run customer service for people, answering questions and such, as well as returning these items to the proper shelves), confirm your purchase using your fingerprint, and WALK RIGHT OUT OF THE STORE.

 

When you leave the geofence for that store, your account is automatically billed for the amount. A receipt is sent to your iCloud address under an automatic smart folder "Receipts". 

 

Of course, this requires tens of millions of retailers to get on board with the system, but it provides them instantaneous feedback as to what products sell best, what they need to buy, quantities, etc. And all this gets passed onto the manufacturer as well, so they will know INSTANTLY if a product is becoming a hit or should be discontinued.

 

Imagine how much money it will save!

 

Oh, and from a consumer standpoint, Apple will have made the former actions associated with stealing… legal. It's a neat, tingly feeling—one of suspense and forbiddenness—that customers will latch onto right away due to novelty, so being a part of the system will make retailers more desirable.

 

Imagine… on one of the windows of nearly every store in the country (heck, it would be proudly displayed on banners at first), right next to all the major credit card logos… would be the Apple logo.

 

Just have Apple add one cent to every transaction to cover management and power to the back end hardware. Finally the haters will have a real Apple Tax about which to gripe, but they'll make tens of billions. A month.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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