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Rumor: Apple to drop iPhone 5 in favor of 'iPhone 5S' and 'iPhone lite'

post #1 of 114
Thread Starter 
In what would be a marked departure from its usual iPhone introduction protocol, Apple is said to be preparing to discontinue production of the iPhone 5 when it debuts the handset's successor later this year, opting instead to produce only the "iPhone 5S" and an unannounced lower-priced counterpart.



The latest rumor forecasting the demise of the iPhone 5 came on Wednesday, courtesy of ETNews. The rumor would mark a significant departure from Apple's routine, as the Cupertino company typically keeps the last two generations of its bestselling smartphone in production in order to market them to lower-income earners and markets.

That system has led to Apple's current situation, which sees the iPhone 5 at the high-end, followed by the iPhone 4S at a medium price range, and the iPhone 4 often given away alongside a contract in the United States and some other territories. Apple CEO Tim Cook said this week that the iPhone 5 is the company's most popular iPhone "by far," with recent data suggesting that the device makes up half of Apple's iPhone sales.

ETNews' report focuses on the in-cell technology at work in the iPhone 5's touchscreen, claiming that that technology is "not suitable for low-volume production." Apple, according to the report, will abandon production of the iPhone 5, focusing on the high-end successor ? generally assumed to be named "iPhone 5S" ? and a rumored less-expensive, plastic-backed model dubbed the "iPhone lite."

Observers note, though, that leaks believed to show the iPhone 5S have all so far portrayed the device as having a display and touch array very similar to that of the iPhone 5. Production is believed to have already started on the current iPhone's successor, and some believe it will see release in September of this year.
post #2 of 114
This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ

Originally by Rickers - 2014 : Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.

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Originally by Rickers - 2014 : Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.

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post #3 of 114
Sounds believable. Crap, but believable.
post #4 of 114

After almost three years (a bit less), 20% of sold iphones are iphone 4! Why on earth would apple want to stop production of 5?!

post #5 of 114
Quote:
Originally Posted by Paul94544 View Post

This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ

Perhaps he has a single-digit IQ¿
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 #6 of 114

I don't know...Apple prides itself in being a billion dollar company with basically ~9 products. They seem to want to keep this simple.

 

 

 

I think Apple is always looking to move fwd, unlike any other company I can think of. Never to rest on it's laurels because complacency is not in their DNA.

 

 

 

I know everyone cites competition is good (Google, MS, etc.). But Apple, for many years had no iPod competition and yet re-designed/improved the best selling iPods almost yearly.

 

Same with the iPhone, iPad and Macs. And it's iOS and OSX.

 

 

 

P.S. I must admit I was a little surprised to see just how much the iPhone contributes to Apple's business and also, how little the iPod is now contributing.

post #7 of 114
Quote:
Originally Posted by PhilBoogie View Post


Perhaps he has a single-digit IQ¿

Or maybe an IQ "twice his shoe size?" As my father used to say!  :)

post #8 of 114
Quote:
Originally Posted by Paul94544 View Post

This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ


Apple could simply sell the iPhone 5 at a discount until the pipeline and shelves are cleared. They have done this with other products.

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post #9 of 114
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Originally Posted by helia View Post

After almost three years (a bit less), 20% of sold iphones are iphone 4! Why on earth would apple want to stop production of 5?!


Because Apple might make an iPhone 5S Lite that would replace the iPhone 4, 4S & 5. That keeps only the newest technology for sale from Apple.

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post #10 of 114

At first I was hesitant like most of you to this idea, but we have to remember Apple is the best at keeping a slim pipeline. More than likely what will happens is

iPhone 5S @ $199 (same price points as 5)

iPhone "lite" 8GB @ $0 (w/ 2 year contract)

iPhone "lite" 16GB @ $99 (w/ 2 year contract)

 

How these will be differentiated is that the "lite" will be using all of iPhone 5's internals. So they'll use up what they they have "left over" in huge batches without having to worry about over ordering components since they'll just use it in the next years "lite". Also by doing these big batches (think 2 years worth) they'd get huge discounts also increasing their margins.

 

To me, it makes complete sense.

post #11 of 114
Ok so what did Apple do when they discontinued the 17" MBP or when the iPod nano changed form factors? The iPhone 5's still left in the channel will probably be sold at a discount so Apple can get rid of the inventory.
post #12 of 114
Quote:
Originally Posted by Rogifan View Post

Ok so what did Apple do when they discontinued the 17" MBP or when the iPod nano changed form factors? The iPhone 5's still left in the channel will probably be sold at a discount so Apple can get rid of the inventory.

Oh, for sure, but it's not going to be a fire sale or anything like you may think. It'll just be a quiet, yes we still have 2 weeks inventory. My thoughts are they they have channels to unload this stuff whether it be government, education or posed as "refurbished".

post #13 of 114
Quote:
Originally Posted by jd_in_sb View Post


Because Apple might make an iPhone 5S Lite that would replace the iPhone 4, 4S & 5. That keeps only the newest technology for sale from Apple.


I never knew iphone 5 is the old technology in the face of low cost iphone!

post #14 of 114

"ETNews' report focuses on the in-cell technology at work in the iPhone 5's touchscreen, claiming that that technology is "not suitable for low-volume production.""

 

The implication being the 5s will have a different screen.

post #15 of 114

If Apple can make this supposed iPhone Lite at a comparable cost-point to their prospective "cheap" offerings, the iPhone 4S and iPhone 5, with higher profit margins, and a better consumer proposition, they'll do it.

 

Apart from the "plastic" back there's little to these rumours that suggests any of these things is on the cards.  Is a plastic back enough?  Maybe, but it's a pretty thin argument.  Maybe.

 

Unless your'e an Arrested Development fan, "maybe" isn't an interesting story.  

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post #16 of 114
Quote:
Originally Posted by Crowley View Post

If Apple can make this supposed iPhone Lite at a comparable cost-point to their prospective "cheap" offerings, the iPhone 4S and iPhone 5, with higher profit margins, and a better consumer proposition, they'll do it.

Apart from the "plastic" back there's little to these rumours that suggests any of these things is on the cards.  Is a plastic back enough?  Maybe, but it's a pretty thin argument.  Maybe.

No. Simply swapping the existing case for one with a plastic case will save a few dollars - certainly not enough to allow a phone to be sold at a much lower price.

A plastic back is mostly marketing - they want customers to clearly be able to distinguish the phones. The internals will have to be significantly different, but they aren't visible at a glance, so cannibalization is a risk. A completely different form factor which instantly screams "second tier" is needed - ergo the plastic back.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #17 of 114
Quote:
Originally Posted by Paul94544 View Post

This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ

Of course the iPhone 5 would still sell at resellers and why would they leave millions in the pipeline anyway? If they plan the change for September/October, they will assess the demand and issue the supply accordingly (they've become pretty good at this).

They don't even need to call this one the 5S. It can just be iPhone and iPhone lite. Similar to iPad and iPad mini.

Price-wise, I think they should be targeting the following off-contract:

8GB iPhone lite $349
16GB iPhone lite $449
16GB iPhone $549

I think at some stage, the entry iPhone and iPod Touch will be better off as a single line. This allows old phones to be handed down to kids as iPods just by taking out the sim and iPods get the option to use 3G/4G when out and about.
post #18 of 114
Quote:
Originally Posted by helicopterben View Post


I never knew iphone 5 is the old technology in the face of low cost iphone!


I should have said a lower cost iPhone 5S Lite might have *some* newer technology like a fingerprint scanner. But you're right, overall the iPhone 5S Lite would probably be less capable than an "older" iPhone 5.

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post #19 of 114

This makes sense.  Didn't the head of Foxconn say the iP5 was the most difficult to assemble product they had ever had to deal with?  That difficulty would imply a certain cost premium for assembly due to utilising a lot of labor resources, I would think.  So if there are constraints in making this model type, it would be sensible to devote all your limited capacity to making the new, higher profit model.
 

post #20 of 114

Seems like a dubious proposition to me, given the glowing remarks Steve Tim made yesterday on the sales of 4 and 4s.  Gosh, if it's not broken, why fix it?  Unless.... unless Apple has something faster, better, stronger, and even more magical in the works! 

post #21 of 114
Quote:
Originally Posted by Marvin View Post
Price-wise, I think they should be targeting the following off-contract:

8GB iPhone lite $349
16GB iPhone lite $449
16GB iPhone $549

I think at some stage, the entry iPhone and iPod Touch will be better off as a single line. This allows old phones to be handed down to kids as iPods just by taking out the sim and iPods get the option to use 3G/4G when out and about.

Why would Apple drop the newest iPhone off contract price by a $100? Pretty crazy if you ask me especially when their margins aren't as high for the top iPhone. Most people don't care about off contract, they care about seeing that special $199 price.

post #22 of 114
Quote:
Originally Posted by TeaEarleGreyHot View Post

Seems like a dubious proposition to me, given the glowing remarks Steve Tim made yesterday on the sales of 4 and 4s.  Gosh, if it's not broken, why fix it?  Unless.... unless Apple has something faster, better, stronger, and even more magical in the works! 

When has apple every stated anything against the benefit of their profits? Of course they're going to be glowing about the 4 & 4s. Any company would be crazy not to, I mean look at MS w/ their RT tablets, they still "love" them. You should know by now that if a company says one thing is magical, they're only waiting till the next product a few months out to replace it.

post #23 of 114

Why is this even surprising?  If they are going to replace the program of selling the the old models with a new cheap iPhone then obviously the 4, the 4s and the 5 will all be discontinued.  

 

The only disagreement I have is why they would call the new 'pro" iPhone the 5s when "iPhone 6" sounds nicer and would be less confusing. 

post #24 of 114
Quote:
Originally Posted by Paul94544 View Post

This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ

 

1) I think you are way overestimating what they would have in the pipeline at the moment the new phone came out.

 

2) They sure would be able to sell them.  Why not?

 

3) someone with an 80 IQ can't even tie their shoes most of the time

 

4) obviously you have a hyperbole problem 

post #25 of 114
Quote:
Originally Posted by helicopterben View Post


I never knew iphone 5 is the old technology in the face of low cost iphone!

 

If, (if) the new low cost iPhone exists, then today's iPhone 5 actually *is* the "iPhone lite" (or something really similar), given that the idea is to put old internals in a cheap case and at the point the next iPhone is released, the 5 becomes old news. 

post #26 of 114
Quote:
Originally Posted by Paul94544 View Post

This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ

LOL, they just have to drop them by $100 and the people that dont want the plastic case ones may even fight to get them. Even with no low cost iphones, it what they would have done anyway.
post #27 of 114
Quote:
Originally Posted by helicopterben View Post


I never knew iphone 5 is the old technology in the face of low cost iphone!

Its old tech in a fancy case. Now it will be old tech in a regular case. Happy?

it makes more sense to sell old tech in regular shells to drive the price down a bit more. And you have the benefit of colors. I am 100% with apple on this. And ti gives them the option to tweak the internals at the same time. By just selling old phone Apple was lasy, but now they are putting some taugh into that market. Imo the results will be massive sales and better margins.

I think there mid range strategy is very clever. It the high model that worries me. Unless it has some major innovation killer thing, i dont think they will get away with pricing a 4" phone at the high end this time. The fingerprint thing needs to be for something more than just unlocking the phone and buying on itunes.
Edited by herbapou - 7/24/13 at 3:33pm
post #28 of 114

I don't think this is that far-fetched. Keeping the 5 around might lead to a confusing lineup of iPhone options. I picture Phil Schiller wanting to eliminate the 5 in order to have 2 lineups of iPhones: the "Lite", and the "Jesus Phone". It also gives them an opportunity to reset the naming of the iPhone lineup. The "Lite" will simply be called "iPhone" and the aluminum will be called the "iPhone Pro" (or "iPhone S" or whatever). Keeping the 5 around would muddle things a bit.

 

There is also the possibility that this isn't a Phil Schiller decision, but a Tim Cook one: the iPhone Lite lineup could have higher margins than a price-reduced 5. With an injection-molded shell, likely easy assembly, and economies of scale for the 4" LCD, SoC + other components --- not a crazy theory.

post #29 of 114
Quote:
Originally Posted by drewyboy View Post

Why would Apple drop the newest iPhone off contract price by a $100? Pretty crazy if you ask me especially when their margins aren't as high for the top iPhone. Most people don't care about off contract, they care about seeing that special $199 price.

Some of the markets they've been struggling in are the ones with low entry prices and a lot of the time are prepay phones. That would be the reason to have a low entry point off-contract. Lowering the price of the top model would simply be to avoid leaving too large a gap, which would drive people to the lower models.
Quote:
Originally Posted by Gazoobee 
The only disagreement I have is why they would call the new 'pro" iPhone the 5s when "iPhone 6" sounds nicer and would be less confusing.

Wait, isn't it the 7th model? 5S makes sense being the 7th because it has no relation but the 7th being iPhone 6 is very confusing. I hope they get it right this time because consumers really cared what they called it last time.
post #30 of 114
Originally Posted by AppleInsider View Post

... the Cupertino company typically keeps the last two generations of its bestselling smartphone in production in order to market them to lower-income earners and markets.

 

And the lower-cost iPhone could, in theory, allow Apple to stop production of old iPhones entirely.  This would reduce support overhead by eliminating the need to support 2 year old hardware with the latest version of iOS.  Right now, you can buy three different generations of iPhones, each with the latest iOS 6.x pre-installed.  Meaning Apple needs to test each release of iOS on three different generations of iPhone.  That costs money, and tends to slow down adoption of the latest hardware and software.

 

A lower-cost iPhone might replace previous years' high-end iPhone models.  Want a cheap iPhone?  Buy the latest "iPhone Lite."  It won't have all the features of the high-end model, so if the rumors of a fingerprint sensing screen are true, you probably would need to buy the high-end iPhone to get that.  (And it would be worth it.)  This scheme would allow to reduce production from three iPhone models to just two, and they would always be producing the current model of each line.  Each year the production lines would retool for the new model.

 

One trick to making this work would be to move last year's high-end iPhone components into this year's low-cost iPhone.  So the low-cost iPhone wouldn't require as much development effort.  So, this year, Apple would put the iPhone 5 components into the first low-cost iPhone.  And this year's new high-end iPhone would have some new hardware features (improved camera plus fingerprint sensing touchscreen maybe.)  Next year, the low-end iPhone would have some of this year's high-end iPhone components (camera) minus features that are high-end iPhone-only (fingerprint sensing touchscreen.)

 

So what about the "free" model?  The 2-year old iPhone that's $0 with carrier subsidy?  Apple might be able to sell two different "iPhone Lite" models: a 32GB model for $99, and another with 16 GB for $0.  There might never even be a "last year's iPhone" of either the high-end or low-cost model.

 

All of which would tend to allow Apple to move iOS ahead faster, without the burden of backward compatibility and/or testing on older model iPhones.  Apple could only allow each release of iOS to run on the current high-end iPhone and last year's high-end iPhone.  Of course, there's the matter of reduced economy of scale because each year's iPhone development costs would be amortized over only one year's unit volume.  And there would surely be some unhappy users who were accustomed to running the latest iOS on 2-generation old hardware.

 

Apple has all the numbers plugged into a Numbers spreadsheet somewhere in Cupertino.  Just my $0.02.  We'll see what happens.


Edited by SockRolid - 7/24/13 at 3:37pm

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post #31 of 114
Quote:
Originally Posted by Paul94544 View Post

This is such a load of nonsnense becauase Apple would put itself in the situation of having millions of unsold iPhone5's in the pipeline and on shelves which they would not be able to sell! Again the moron that thought this one up is a total dochebag and cannot see past his 80 IQ

 

Think about it: Apple only needs one premium phone which is covered by the new 5S. This phone will have a newer A-chip and fingerprint unlocking but otherwise look like the iPhone 5.

 

The consumer iPhone will come in gaudy colors and will be essentially an iPhone 5 in specs only. 

 

Unsold iPhone 5 inventory can be blown out on eBay as "reconditioned" iPhones with a new waranty (What Apple is doing now with some of their recent inventory).

 

In this way Apple clears their inventory of all iDevices with the old connector and moves to the single screen size of the iPhone 5. Life is good, God is in his kingdom and all is right in the world.

"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 #32 of 114
Maybe they'll increase the price of the iphone 5S.
post #33 of 114
I'm sorry but I think iPhone pro is the dumbest name. Almost as bad as iPad air (or iPad pro for that matter).
post #34 of 114
Quote:
Originally Posted by bizzare View Post

Maybe they'll increase the price of the iphone 5S.
Why?
post #35 of 114
Quote:
Originally Posted by Marvin View Post

I hope they get it right this time because consumers really cared what they called it last time.

lol.gif   Good bait.

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post #36 of 114
Quote:
Originally Posted by Crowley View Post

If Apple can make this supposed iPhone Lite at a comparable cost-point to their prospective "cheap" offerings, the iPhone 4S and iPhone 5, with higher profit margins, and a better consumer proposition, they'll do it.

 

Apart from the "plastic" back there's little to these rumours that suggests any of these things is on the cards.  Is a plastic back enough?  Maybe, but it's a pretty thin argument.  Maybe.

 

Unless your'e an Arrested Development fan, "maybe" isn't an interesting story.  

 

They could also save money on production if there was only one model instead of multiple memory sizes, or if the manufacturing itself was simpler and therefore cheaper.  I agree it's kind of dubious, because to replace the current program of selling the old ones, the "iPhone lite" needs to be in the $200 range off contract and the starting price of a new iPhone is more like $700.  

 

So if it's a "mid-range" phone, then it isn't replacing the older iPhones, and they've just confused their line up with even *more* models.  If on the other hand it's a cheap iPhone to replace the older models thing, then it has to be so cheap as to make us wonder how the hell it can be that cheap.  

 

That's why I keep hoping this is a $200 off-contract phone.  If it isn't, Apple is entering into a world of complexity and confusion like never before with their product lineup.  At minimum, it would give them three iPhone models this year (no change) and four each year for the years after that (or more). 

post #37 of 114
Quote:
Originally Posted by Marvin View Post


Some of the markets they've been struggling in are the ones with low entry prices and a lot of the time are prepay phones. That would be the reason to have a low entry point off-contract. Lowering the price of the top model would simply be to avoid leaving too large a gap, which would drive people to the lower models.
Wait, isn't it the 7th model? 5S makes sense being the 7th because it has no relation but the 7th being iPhone 6 is very confusing. I hope they get it right this time because consumers really cared what they called it last time.

 

We have no idea what Apple may call their new iPhones. 

 

I'd bet they won't call it the iPhone 7 or the iPhone 8 with Uncle Fester's crap-phone running Windows 8 and the Windows 7 Nokia phones still being unloaded by carriers. The premium iPhone needs a name that echos some cachét like a high-end auto or a Rolex watch... that's where Apple's going with forking the iPhone marketing and any new iWear devices.

"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 #38 of 114
Maybe they get their info from Apple blogs. I have been calling this for ages. But only because it's obvious. Why keep losing profits on margins by offering the previous high-end difficult to produce models at entry level low margins prices? It NEVER made sense.
post #39 of 114
Quote:
Originally Posted by Marvin View Post

Of course the iPhone 5 would still sell at resellers and why would they leave millions in the pipeline anyway? If they plan the change for September/October, they will assess the demand and issue the supply accordingly (they've become pretty good at this).

They don't even need to call this one the 5S. It can just be iPhone and iPhone lite. Similar to iPad and iPad mini.

Price-wise, I think they should be targeting the following off-contract:

8GB iPhone lite $349
16GB iPhone lite $449
16GB iPhone $549

I think at some stage, the entry iPhone and iPod Touch will be better off as a single line. This allows old phones to be handed down to kids as iPods just by taking out the sim and iPods get the option to use 3G/4G when out and about.

I like the idea.

I assume Apple would save a lot on production with this as well.

Only thing I hope is that the iPhone Lite is an aluminum iPod Touch phone and not a cheap plastic phone like the leaks suggest.

Quote:
Originally Posted by Gazoobee View Post

Why is this even surprising?  If they are going to replace the program of selling the the old models with a new cheap iPhone then obviously the 4, the 4s and the 5 will all be discontinued.  

The only disagreement I have is why they would call the new 'pro" iPhone the 5s when "iPhone 6" sounds nicer and would be less confusing. 

Also like the idea of calling the iPhone 5S "iPhone Pro" and the cheaper phone simply "iPhone" but ONLY of the cheaper phone is NOT plastic.

All aluminum forever Apple. Don't go back to cheap white plastic.
post #40 of 114
Quote:
Originally Posted by Ingela View Post

Why keep losing profits on margins by offering the previous high-end difficult to produce models at entry level low margins prices? It NEVER made sense.

Because they weren't, probably.
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