Pegatron CEO: Apple's 'low-cost iPhone' will not be cheap
Speaking at his company's shareholders meeting on Thursday, Pegatron CEO T.H. Tung said Apple's much rumored low cost iPhone won't be a budget offering, seemingly confirming speculation that the handset will be sold as a higher-end middle tier device.
Tung disagreed with rumors that called Apple's lower-end offering "cheap," saying the "price is still high," reports the China Times (via Mac Otakara).
The executive said products currently on the market can carry a number of names, but "cheap" is not one that should be associated with Apple's less expensive iPhone. He went on to say that, compared to feature phones, smartphones are increasingly offering more value for the price.
The statements appear to confirm previous reports that Pegatron is handling at least a portion of the as-yet-unannounced iPhone's manufacture. A report in May claimed Pegatron is reportedly preparing to hire some 40,000 workers sometime in the second half of 2013, adding fuel to the low-cost iPhone fire.
Analysts and media sources are divided as to which of Apple partners will be responsible for the majority of production, with some claiming Foxconn is to pull most of the burden.
KGI analyst Ming-Chi Kuo in March said the two companies will nearly split manufacturing duties for the low-cost version, while Pegatron would take on a bigger share of continued iPhone 4 and 4S production.
On Wednesday, AppleInsider offered a first look at 3D renderings of so-called "iPhone Lite," which were made by a well-known third-party case maker from schematics it received. If the blueprints are authentic, the new design boasts curved edges and a slightly thicker frame than the current iPhone 5, which is in line with previous rumors.
Tung disagreed with rumors that called Apple's lower-end offering "cheap," saying the "price is still high," reports the China Times (via Mac Otakara).
The executive said products currently on the market can carry a number of names, but "cheap" is not one that should be associated with Apple's less expensive iPhone. He went on to say that, compared to feature phones, smartphones are increasingly offering more value for the price.
The statements appear to confirm previous reports that Pegatron is handling at least a portion of the as-yet-unannounced iPhone's manufacture. A report in May claimed Pegatron is reportedly preparing to hire some 40,000 workers sometime in the second half of 2013, adding fuel to the low-cost iPhone fire.
Analysts and media sources are divided as to which of Apple partners will be responsible for the majority of production, with some claiming Foxconn is to pull most of the burden.
KGI analyst Ming-Chi Kuo in March said the two companies will nearly split manufacturing duties for the low-cost version, while Pegatron would take on a bigger share of continued iPhone 4 and 4S production.
On Wednesday, AppleInsider offered a first look at 3D renderings of so-called "iPhone Lite," which were made by a well-known third-party case maker from schematics it received. If the blueprints are authentic, the new design boasts curved edges and a slightly thicker frame than the current iPhone 5, which is in line with previous rumors.
Comments
Similar price ration as the iPad Mini to the iPad.
It will sell like crazy...
Gotta keep a healthy margin.
Time will tell.
Do we have to go through the same thing again as we went through with the rumors on the price of the iPad Mini, before it was announced?
You'd think everyone would have figured out by now that Apple doesn't do "cheap." Instead they just do "less expensive" ...than their previous or existing similar product.
What Apple will be doing is shifting most of internal parts of 4S to the new body containing new connector Lightning so
you get one whole happy family in connection, Bluetooth & maybe Wi-Fi.
Whatever pricing it is, your thinking makes sense. They need to obliterate 3.5" displays ASAP.
You're saying what everyone knew. It was only the analysts who were "confused" or messing with the stock market.
Possible statement from a Wall St. analyst: "My wife has 1M shares in AAPL. What's that got to do with me?"
The 4 and 4S are old phones by now so people can stop saying "they already have a cheaper phone in the 4 and 4s, no need to do this". The 4/4s already target the middle tier so I see this as just a replacement of those models but with a larger appeal to emerging markets. I just hope the cannibalization rate is not too high like we saw with the mini and margins go down further. Hope when they announce these new phones that they announce a deal with CM at the same time but I am starting to think that deal will never happen.
The 4 and 4S are old phones by now so people can stop saying "they already have a cheaper phone in the 4 and 4s, no need to do this". The 4/4s already target the middle tier so I see this as just a replacement of those models but with a larger appeal to emerging markets. I just hope the cannibalization rate is not too high like we saw with the mini and margins go down further. Hope when they announce these new phones that they announce a deal with CM at the same time but I am starting to think that deal will never happen.
If it is plastic there are unique and creative things Apple could do with the design and shape to make it unique from the main iPhone.
Maybe they could make shrink the top and bottom bezels of the device in the same way the iPad Mini shrunk the side bezels for the iPad?
Maybe a tear drop design? They could feasibly make this phone thinner than the 5. iPhone Air maybe?
If it just looks like a 3GS that could be a missed opportunity.
iPad mini isn't plastic. None of the iPods are plastic. Not sure why a lower cost iPhone would have to be plastic.
How does the 4/4s being old make that argument invalid? For that matter, how does putting 4/4s components in a different case make a new phone?
I can see an argument for apple redesigning the 4s to eliminate the smaller screen and 30 pin connector, but that's a one time deal. I simply cannot understand people who think apple should spend time and money redesigning and revamping production lines for products that they already have on shelves.
I think this is just a replacement for the 4S that has a 4 inch display and a lightning connector. The line-up will be this/5/5S instead of 4S/5/5S. It's so they can use the same displays and have everything on the lightning connector, nothing else.
IMO - to continue to stay relevant any company needs to tweak their products from time to time. Just continuing to sell a phone that is 2+ years old does more harm to apple. I am sure there will be additional upgrades in the new phone than just swapping out 4/4s components and replacing them in the new phone. We are all seeing what selling a large amount of 4/4s models now are doing to their margins so I am assuming that apple knows what they are doing and the new phone will sport healthier margins than what the 4/4s currently is giving them.
Quote:
Originally Posted by OllieWallieWhiskers
the iPod touch (w/camera) is $299. The iPhone won't go below that. The current iPhone is $649... If the low-cost iPhone comes in at $449, I'd say that would hit the target. They would be able to retire the 4 & 4S, and sell this one free on contract. Plus, it would put 4" displays across the board.
That makes sense.....we know if Apple makes it it won't be cheap.......they might have a lower priced offering...but not cheap as in lower standards....
The options for an iPhone would either be plastic or glass.
Cellular signals don't go through aluminum. So we could see an aluminum device with a plastic "window" for the wireless signals much like the iphone 1. Or we could see an entirely plastic back like the 3G/3GS.
Glass is also a possibility. We could see a deosgb similar to the 4/4S, but production costs may be an issue at that point.
It all depends if Apple is going for a $399ish price or a $499ish price. Both would stil quantify as "low-cost" by Apple standards but the price determines what materials etc to expect.
Quote:
Originally Posted by blackbook
The options for an iPhone would either be plastic or glass.
Cellular signals don't go through aluminum. So we could see an aluminum device with a plastic "window" for the wireless signals much like the iphone 1. Or we could see an entirely plastic back like the 3G/3GS.
Glass is also a possibility. We could see a deosgb similar to the 4/4S, but production costs may be an issue at that point.
It all depends if Apple is going for a $399ish price or a $499ish price. Both would stil quantify as "low-cost" by Apple standards but the price determines what materials etc to expect.
I am not sure about the aluminum part...there are phones on the market that are aluminum that have no signal issues.
I agree with you on the 3G/3GS and the plastic backs...they could be similar to that.....