These guys are talking a phone that at full price is no more than $100
No. About $300 is more like it.
All the major phone manufacturers Nokia (symbian), Samsung (Android), Sony Ericcsson (Android), HTC (Android), Google Nexus and even the Nokia Lumia (Windows 7) are selling 4inch screen smartphones phones at the ~$300 price range without contract in all the major developing markets. iPhone on the other hand costs ~$700. An new iPhone even at ~350 has a tremendous market value i believe. I don't know though, whether Apple can make any profit out of it.
What iPhone model do you have and how much did it cost?
I'm not sure how that's relevant, but I have a 4S 64 GB, bought in the U.S. for $850 plus tax. It would have been more expensive in China. China Unicom will subsidize part of the cost of an iPhone, but only if you sign up for one of the more expensive plans.
til I looked at the draft ov $7328, I accept that my best friend was like they say actualy receiving money part-time on their computer.. there aunts neighbour haz done this for only nineteen months and just repayed the dept on there villa and got a new Volkswagen Golf GTI. go to, cloud68.DOtcom
…iPhone 4. iPhone 4S. I don't get why people think there is "room" for a 2.5" phone. It's 2008 all over again…
People find it difficult to grasp the notion that profit is more important than market share. This is why they make up all kinds of weird scenarios in which Apple makes odd compromises and complicates their product lines so that they can attack the unprofitable end of the market.
If they can't make a profit from it then what's the point exactly?
I guess in some people's mind market share is more important than profits. But I'll ask again, how long can Nokia and HTC afford to sell their phones dirt cheap in order to get people to buy them?
I suppose Apple could make a cheap plastic non-retina phone for certain countries but I'm not sure exactly what the upside would be since they value themselves as a premium brand. I suppose it would lock people into their ecosystem but if the phone is mainly used for talk and text (not sure how many in the "emerging markets" an afford a monthly data plan) how do they really experience Apple's ecosystem? It's not likely they'll be buying a lot of apps off the App Store or media off iTunes.
My name is Joe. Joe is thinking of buying a new cell phone. Joe sees an ad and then follows up with a trip to the store and this is what he sees:
1. A very small phone. Smaller than previous iPhones.
2. A very rugged phone. More rugged than the previous iPhones.
3. A cheaper phone. Costs $4.99.
4. Has cheaper available data options. Costs 240 USD less/yr in data than previous iPhones.
5. While he realizes quickly that he can't do all the same things as a previous iPhone (like browsing experience, not all apps available, etc.), he can still read email, text, talk, listen to music & control his other compatible AirPlay and iOS devices around his home, car and office.
Joe1 is in low to middle income and while he would get a previous version of iPhone he is happy with a choice like the one above, especially to save money.
Joe2 is middle to upper income and he already has an iPad Mini.
Joe3 was about to buy an Android device but then sees this phone, the initial & contract price is almost identical to the others, and it just looks a little better.
Joe4 THINKS he is making a wonderful decision but really he doesn't know much of anything, the commercials were just so damn good.
I wonder how many "Joe"s are out there?
Which "Joe" might you be?
[edit: Joe5 is a fairly responsible 10 yr old (almost 11) whose parents thought this a good time to get him a phone.]
I'd actually like to se a go phone like model that has just the native apps, limited app store downloads, with iTunes /podcasts are cloud based only. And have the service pay as you go with tiered data. I think that would be a great alternative. Keeping the hard drive at a minimum, non retina, locked drive capacity. That could sell in emerging markets. He'll, I'd buy one. Now that I've been an iPad user for nearly 2 years, I barly use my iPhone anymore. Only times I do is when I'm out on the evenings or weekends. And of all the apps I use the native ones the most. Text, web, email and phone. Keep it simple. However, seeing as though the 4 most expensive components on the iPhone are the screen, battery, memory and wireless chips, I'd say it would have to be non retina, which I think Apple is done messing with low-res on the iPhone, so I doubt we will see anything dramatically lower priced anytime soon.
Not true. Just because iPhone service plans cost $80 a month in the U.S., don't assume the same is true everywhere. In China I pay about US$5 a month for my voice/data plan.
from what I understand, in China and many other countries, you pay the full blocked price for an I phone too. Th chip has a very nominal monthly lease and then you pay as you go on voice and data. In some cases that might be equivalent to $80/mo. And most cases much cheaper. So it all depends on how much you use the service.
So what. They can just buy a plan without data. Why does the phone have to omit a $0.60 chip?
Why?
How can they possibly do this when they have absolutely no control whatsoever over either aspect of the network?
…What. Apple has zero control over plan prices. I fail to see how this is a concern.
Why go all data? Because that's the inevitable future.
Apple had zero control? What about texting (iMessage)? Apple changed how we text now on iPhones, didn't they? You can already use Skype on your iPhone. Or google voice can call phone numbers. It's going to happen.
The subsidies… which are the same as all other phone subsidies… and the plans… which are the same price if you get a different phone.
It's known that carriers pay about $100 more for subsidizing an iPhone. This results in a lot of extra cash being tied up in phone subsidies. AT&T, for example, often has over a half billion dollars sunk into iPhone subsidies alone during a new model debut. They have also has said that it takes an average of 20 months to get repaid for the subsidy (it's a loan, really) from someone's cell plan.
This is why some carriers overseas have stopped subsidizing iPhones, and it's why non-Apple salespeople tend to push Android phones with their higher profit for the store. Some analysts have expressed worry that if enough carriers stop subsidzing iPhones, Apple will be forced to lower their prices. Doesn't seem likely for a while, though.
Comments
The iPhone 5's screen may have grown to give way to a slightly smaller non-retina phone, just like what Apple did with the iPad..
It fits their modus operandi.
Originally Posted by jamescoulee
…a slightly smaller non-retina phone…
…iPhone 4. iPhone 4S. I don't get why people think there is "room" for a 2.5" phone. It's 2008 all over again…
Quote:
Originally Posted by charlituna
These guys are talking a phone that at full price is no more than $100
No. About $300 is more like it.
All the major phone manufacturers Nokia (symbian), Samsung (Android), Sony Ericcsson (Android), HTC (Android), Google Nexus and even the Nokia Lumia (Windows 7) are selling 4inch screen smartphones phones at the ~$300 price range without contract in all the major developing markets. iPhone on the other hand costs ~$700. An new iPhone even at ~350 has a tremendous market value i believe. I don't know though, whether Apple can make any profit out of it.
I'm not sure how that's relevant, but I have a 4S 64 GB, bought in the U.S. for $850 plus tax. It would have been more expensive in China. China Unicom will subsidize part of the cost of an iPhone, but only if you sign up for one of the more expensive plans.
til I looked at the draft ov $7328, I accept that my best friend was like they say actualy receiving money part-time on their computer.. there aunts neighbour haz done this for only nineteen months and just repayed the dept on there villa and got a new Volkswagen Golf GTI. go to, cloud68.DOtcom
Quote:
Originally Posted by iamnemani
An new iPhone even at ~350 has a tremendous market value i believe. I don't know though, whether Apple can make any profit out of it.
If they can't make a profit from it then what's the point exactly?
Quote:
Originally Posted by Tallest Skil
…iPhone 4. iPhone 4S. I don't get why people think there is "room" for a 2.5" phone. It's 2008 all over again…
People find it difficult to grasp the notion that profit is more important than market share. This is why they make up all kinds of weird scenarios in which Apple makes odd compromises and complicates their product lines so that they can attack the unprofitable end of the market.
I suppose Apple could make a cheap plastic non-retina phone for certain countries but I'm not sure exactly what the upside would be since they value themselves as a premium brand. I suppose it would lock people into their ecosystem but if the phone is mainly used for talk and text (not sure how many in the "emerging markets" an afford a monthly data plan) how do they really experience Apple's ecosystem? It's not likely they'll be buying a lot of apps off the App Store or media off iTunes.
My name is Joe. Joe is thinking of buying a new cell phone. Joe sees an ad and then follows up with a trip to the store and this is what he sees:
1. A very small phone. Smaller than previous iPhones.
2. A very rugged phone. More rugged than the previous iPhones.
3. A cheaper phone. Costs $4.99.
4. Has cheaper available data options. Costs 240 USD less/yr in data than previous iPhones.
5. While he realizes quickly that he can't do all the same things as a previous iPhone (like browsing experience, not all apps available, etc.), he can still read email, text, talk, listen to music & control his other compatible AirPlay and iOS devices around his home, car and office.
Joe1 is in low to middle income and while he would get a previous version of iPhone he is happy with a choice like the one above, especially to save money.
Joe2 is middle to upper income and he already has an iPad Mini.
Joe3 was about to buy an Android device but then sees this phone, the initial & contract price is almost identical to the others, and it just looks a little better.
Joe4 THINKS he is making a wonderful decision but really he doesn't know much of anything, the commercials were just so damn good.
I wonder how many "Joe"s are out there?
Which "Joe" might you be?
[edit: Joe5 is a fairly responsible 10 yr old (almost 11) whose parents thought this a good time to get him a phone.]
Quote:
Originally Posted by Rayz
If they can't make a profit from it then what's the point exactly?
Listen, I'm not saying that one is coming out soon, but there are conceivable/realistic options of a profitable hardware offering.
But also, don't forget that there is indirect profitability by gaining a more controlling critical mass of the ecosystem (i.e. iOS & brand).
Why go all data? Because that's the inevitable future.
Apple had zero control? What about texting (iMessage)? Apple changed how we text now on iPhones, didn't they? You can already use Skype on your iPhone. Or google voice can call phone numbers. It's going to happen.
Originally Posted by antkm1
Why go all data? Because that's the inevitable future.
Capped talk is the "inevitable future"? Voice over data is the "inevitable future"?
Apple had zero control? What about texting (iMessage)?
What about it? You're still forced to have texting with an iPhone. It's built right into the plan price.
Quote:
Originally Posted by Tallest Skil
The subsidies… which are the same as all other phone subsidies… and the plans… which are the same price if you get a different phone.
It's known that carriers pay about $100 more for subsidizing an iPhone. This results in a lot of extra cash being tied up in phone subsidies. AT&T, for example, often has over a half billion dollars sunk into iPhone subsidies alone during a new model debut. They have also has said that it takes an average of 20 months to get repaid for the subsidy (it's a loan, really) from someone's cell plan.
This is why some carriers overseas have stopped subsidizing iPhones, and it's why non-Apple salespeople tend to push Android phones with their higher profit for the store. Some analysts have expressed worry that if enough carriers stop subsidzing iPhones, Apple will be forced to lower their prices. Doesn't seem likely for a while, though.