Rumor: Apple planning low-cost iPhone with larger display for late 2013
A new rumor claims Apple plans to launch a low-cost iPhone with a larger display in emerging markets in the second half of 2013.
The source of the rumor is the much-maligned DigiTimes, which has a questionable track record with respect to Apple products. In a report published on Tuesday, the publication cited supply chain sources who said Apple is working on the new, cheaper iPhone for launch later this year.
"Some sources claimed they had seen the sample of the low-cost iPhone, which will come with a larger display, meeting the prevailing trend for the adoption of 5-inch displays for high-end models," the report said. "They added that the low-priced iPhone will also have a brand new exterior design."
It's said that Apple's success in China with the iPad mini, which has a lower entry price than the full-size iPad, may be driving the company's alleged interest in a cheaper iPhone for emerging markets.
It was also suggested that a cheaper iPhone could rely on Qualcomm's latest Snapdragon chipsets, namely the dual-core MSM8960 or the quad-core APQ8064.
But rumors of a cheaper iPhone intended for emerging markets are not new, and Apple has yet to release such a device. That hasn't stopped analysts from predicting that Apple will eventually take that approach with a new iPhone model.
Future growth in the smartphone market is expected to come from countries like China, where customers prefer less expensive smartphones that can be purchased without a contract subsidy. Currently, Apple's cheapest option is the 8-gigabyte iPhone 4, which is available for free with a new two-year service contract, or for $450 unlocked and contract-free.
Apple has gradually expanded its iPhone lineup over the years by offering previous-generation models at lower prices. But some investors believe Apple should do more ? as it did in expanding the iPad lineup with the 7.9-inch iPad mini.
Apple's new smaller iPad has been an instant hit in China, where customers have shown "insatiable demand." Both Hong Kong and mainland China have seen stock-outs and limited availability of the iPad mini since the device went on sale in late 2012.
The source of the rumor is the much-maligned DigiTimes, which has a questionable track record with respect to Apple products. In a report published on Tuesday, the publication cited supply chain sources who said Apple is working on the new, cheaper iPhone for launch later this year.
"Some sources claimed they had seen the sample of the low-cost iPhone, which will come with a larger display, meeting the prevailing trend for the adoption of 5-inch displays for high-end models," the report said. "They added that the low-priced iPhone will also have a brand new exterior design."
It's said that Apple's success in China with the iPad mini, which has a lower entry price than the full-size iPad, may be driving the company's alleged interest in a cheaper iPhone for emerging markets.
It was also suggested that a cheaper iPhone could rely on Qualcomm's latest Snapdragon chipsets, namely the dual-core MSM8960 or the quad-core APQ8064.
But rumors of a cheaper iPhone intended for emerging markets are not new, and Apple has yet to release such a device. That hasn't stopped analysts from predicting that Apple will eventually take that approach with a new iPhone model.
Future growth in the smartphone market is expected to come from countries like China, where customers prefer less expensive smartphones that can be purchased without a contract subsidy. Currently, Apple's cheapest option is the 8-gigabyte iPhone 4, which is available for free with a new two-year service contract, or for $450 unlocked and contract-free.
Apple has gradually expanded its iPhone lineup over the years by offering previous-generation models at lower prices. But some investors believe Apple should do more ? as it did in expanding the iPad lineup with the 7.9-inch iPad mini.
Apple's new smaller iPad has been an instant hit in China, where customers have shown "insatiable demand." Both Hong Kong and mainland China have seen stock-outs and limited availability of the iPad mini since the device went on sale in late 2012.
Comments
Are we so hungry for Apple rumors that we have to keep seeing DigiTimes made up claims? Who can stop this maddness!
Quote:
Originally Posted by jglonek
One would think that an iPhone 4S (with whatever cellular technology required) would be much cheaper for Apple to send to developing countries at this point than a brand new design.
Yes, but, iirc, larger displays are selling really well in developing nations, and they are cheap to boot. [Does Apple have the same cachet in these countries?]
If people actually wanted a year old tech, Apple would not have had problems selling it in south and eastern Europe, Brazill, China and India.
I suspect that when we hear these kinds of rumors, they are a combination of things like:
Possibly different products under development (e.g., a cheaper phone AND a larger phone) but the details are getting jumbled
Possibly Apple just ordering parts for prototypes as they experiment with different approach and these may or may not ever see the light of day
Apple sending out false project and product information in order to smoke out sources of leaks
This would certainly explain the varied and confusing and seemingly non-sensical rumors.
Snapdragon processor? Not going to happen.
Release a new "cheap" phone just to compete with the plethora of crap on the market now. Not going to happen.
DigiTimes printing crap like this until it comes true. Going to happen.
Keep saying it Digitimes. You were finally right about that second iPad (sort of) so you could eventually be right about the cheap iPhone. Or not.
So long as the other sites keep posting their stuff, they will keep writing it
The number of people who think Apple should just maintain its status quo is large and hilarious.
Apple has to compete against the likes of Samsung whether it wants to or not. A client handed me a Galaxy S3 a few days ago and I have to say, that large screen is extremely attractive and makes my iPhone look like a Fisher Price toy. There is a reason why customers like the larger screen. It would serve Apple well to differentiate its products or at least move the product line more towards what consumers are demanding.
Yeah Apple is planning a low cost phone alright it's called the iphone 5. Smh
Does Apple want it? Apple has never been about designing to be 'cheaper', designing to the blog readers demands, designing to what the other boys are doing, and so on.
So perhaps, as uncharitable as it might come off, Apple doesn't care if the third world has iPhones particularly in the sense of making one just for them.
Amusing because a co worker handed me his Galaxy S3 a couple of weeks ago and my first thought was that it was a toy, like something from Fisher Price.
Suppose that's why it is called an opinion.
Apple sells millions of phones world wide, that's enough for them. They don't need to rule the world. As the wise man said 'Us winning doesn't mean everyone else must lose'. Apple doesn't look at the zero sum game of market share, they look at their profits. And that is doing just fine
Quote:
Originally Posted by charlituna
Does Apple want it? Apple has never been about designing to be 'cheaper', designing to the blog readers demands, designing to what the other boys are doing, and so on.
You may be confusing "cheaper" with "less expensive." Clearly Apple does care about less expensive. The evolution of the iPod line should demonstrate this. Plus Apple is a mass market product company and the mass of the market needs and wants less expensive.
Quote:
Originally Posted by charlituna
So perhaps, as uncharitable as it might come off, Apple doesn't care if the third world has iPhones particularly in the sense of making one just for them.
Apple cares about making money and they will care about these markets if a) they can make money in them and b) they consider them to be strategically critical to not losing the overall smart phone platform (i.e., iOS) battle. While you refer to the 3rd world (China mostly isn't that any longer) the developing world (like China, India, etc.) have a shitload of people coming up into the middle and upper classes every year. These are huge markets that will eventually make the US look like child's play.
Sure... if market share and/or unit sales are the metric... Apple is getting creamed by other manufacturers and platforms. Especially in developing countries.
HOWEVER... Apple's iPhone [I]already[/I] generates about $6,000,000,000 in PROFIT every [U]quarter[/U]. That's billions with a B every 3 months.
Does Apple really need these emerging markets? I thought niche was their thing.
Like Mac vs Windows... Apple sells far fewer Macs than the other guys sell Windows machines. Yet all those other companies would gladly trade balance sheets with Apple.
The cheapest phone Apple makes is $450. Yeah... it's out of reach for most of the developing world. But why does that matter?
We've discussed this in other threads: there are plenty of Android phones that retail for $100 brand new unlocked. And they are garbage... and are primarily used as feature phones in poor undeveloped countries.
Why does Apple need to chase that market?
Quote:
Originally Posted by charlituna
Apple sells millions of phones world wide, that's enough for them.
Maybe. But probably not. Apple needs to keep growing.
Quote:
Originally Posted by charlituna
They don't need to rule the world. As the wise man said 'Us winning doesn't mean everyone else must lose'. Apple doesn't look at the zero sum game of market share, they look at their profits. And that is doing just fine
True enough, but too much of short-term focus in an industry where the dominant player can basically relegate everyone else to also-rans could be extremely short-sighted. Apple, I think, learned this lesson from the Mac vs. Windows battle.
Quote:
Originally Posted by Michael Scrip
Does Apple really need these emerging markets?
Yes.
Quote:
Originally Posted by Michael Scrip
I thought niche was their thing.
It hasn't been for a long time. iPod, iPad and iPhone are not exactly "niche" products. Apple is a mass market company.
Quote:
Originally Posted by Michael Scrip
Like Mac vs Windows... Apple sells far fewer Macs than the other guys sell Windows machines. Yet all those other companies would gladly trade balance sheets with Apple.
Except that approach almost bankrupt the company at one point. Yes, NOW they'd like to exchange balance sheets...after Apple transformed itself away from being a niche player.
Quote:
Originally Posted by Michael Scrip
The cheapest phone Apple makes is $450. Yeah... it's out of reach for most of the developing world. But why does that matter?
We've discussed this in other threads: there are plenty of Android phones that retail for $100 brand new unlocked. And they are garbage... and are primarily used as feature phones in poor undeveloped countries.
Why does Apple need to chase that market?
Because that market is probably the future.
Quote:
Originally Posted by charlituna
Does Apple want it? Apple has never been about designing to be 'cheaper', designing to the blog readers demands, designing to what the other boys are doing, and so on.
So perhaps, as uncharitable as it might come off, Apple doesn't care if the third world has iPhones particularly in the sense of making one just for them.
... but that wasn't what jglonek and I were discussing. jg mentioned about selling the 4S rather than investing in brand new technology. My answer was to say that the 4S might not sell well because that is not what they are buying (smaller screens). Nothing was mentioned as to whether or not we felt that Apple should or should not do it (make a cheap large screen iPhone).
What a joke.
Next people will be suggesting Apple will release a smaller format iPad. As if! Anyone who's ever seen a Samsung Galaxy tab would just laugh. 7 inches? ... Puhleeze ... Apple will never go there.