I believe they'd do a drastic price cut on the 4S, but not a brand new, cheap phone. They've had six years to follow the iPod model; they haven't.
No, that is incorrect. They've had 6 years to NOT do it, because it wasn't financial viable. The only thing that HAS been financially viable is lowering the price on last year and the year before's model, because the infrastructure for building and manufacturing those products already existed.
I've long anticipated Apple stop doing that, and instead introduce a new product specifically for that price point. Basically a MacBook Air / MacBook Pro relationship.
Except the iPhone 5S isn't the "Pro" model, but rather the NEW model with the latest hardware, fastest stuff ever, etc. etc. and is $199 and up.
The new low-cost iPhone will, spec-wise, land somewhere in-between the iPhone 4S & iPhone 5. And it will REPLACE both of those devices on the market.
My guess is two models. Starting at $399 and going to $799 off contract. High end model starts at $599. No last years model this year. Next year they can reduce the cheaper model - this years $399 - to $299.
I just don't buy that. We know that Samsung makes some amount of money by trying to break the world record for different kinds of fecal matter, and there's no way that all of that money is made simply by having saved on R&D costs by stealing from Apple.
And it will REPLACE both of those devices on the market.
Mmm... I wouldn't be sure about that. If anything, it would replace the 4S.
Very nice. I'm shocked that most new sites, analysts and even people have not caught on to the fact that Apple will eliminate the old connectors and all products that contain them. Lightning is the new standard, which is why the iPhone 4 and 4S will be gone! This is the opportunity to do it. I highly doubt the 4S will stick around. The low end, plastic iPhone might just replace both the 4 and 4S.
And what of iPad 2 and iPod Classic? Or the Apple-branded 30-pin USB cables and accessories?
I think this, and the screen difference, is the most compelling reason to believe that there's any fire to these rumours. Normally I'd expect Apple to just carry on carrying on, doing exactly what they normally do. But if they keep their normal pattern of using last year's model as this year's cheap model, and with two iterations of old model, then that would mean they'd still be selling an iPhone with a dock connector and a 3.5" screen until fall 2014. I can't imagine anyone at Apple would be happy with that, I'm actually surprised they've kept selling the 4 and 4S for a whole year after their latest and greatest connector was introduced.
Both 4 and the 4S are gone in a couple months, and the lineup is all Lightning and all 4". That's my prediction. 5S at the top, 5 in the middle, and whatever this new one is called as the lowest cost iPhone available, where you would have normally expected the 4S to end up. Possibly a bit cheaper.
I think that makes sense. Plastic body, and 8GB only, and probably a bit thicker and weightier than its bigger siblings, but otherwise same/similar internals to the 4S - same camera, same 512MB RAM, etc.
This is what I expect too. They will the ditch the 3.5 screens. Other than that I hope they will have 2 models at the high end, one 4" screen and one 5" screen.
Market watchers believe such a device could allow Apple to tap into the fast-growing unsubsidized segment of the smartphone market.
Will be interesting to see how Apple markets the lower-cost iPhone (if it really exists.) How will they prevent it from cannibalizing the high-end iPhone? How will they be able to stop gray market imports to the US from China or wherever it's going to be sold?
If Apple builds a lower-cost iPhone specifically for China Mobile, and if it only supports their oddball TD-SCDMA protocol, then that iPhone won't work anywhere else in the world. Right now, China Mobile is the only carrier that uses TD-SCDMA (because it allows them to avoid paying patent licensing fees.) Eventually, China Mobile will roll out their proprietary TD-LTE technology, so maybe the lower-cost iPhone could work with both TD-x protocols. Might be worth it, and there would be zero gray market for it (outside of China.)
Also, it's possible that the TD-SCDMA and TD-LTE technology could spread to other emerging markets. Again, because it doesn't require patent licensing fees. So the market for TD-x-only iPhones could increase over time, all without threatening the high-end iPhone in industrialized markets. Just a thought.
[quote name="SockRolid" url="/t/158181/new-3d-renderings-show-expected-design-of-apples-low-cost-iphone/40#post_2350520"]How will they prevent it from cannibalizing the high-end iPhone?[/QUOTE]
Same way the 4 doesn't cannibalize the 5.
[QUOTE]How will they be able to stop gray market imports to the US from China or wherever it's going to be sold?[/QUOTE]
They won't, but people dumb enough to want one aren't the people they're selling to in the US right now, anyway. Win-win.
A phone with the iPod touch design would be hot. Plastic is just going backwards IMO. And I can imagine the press having a field day considering how many Apple fans have a go at Samsung for their plastic devices.
The problem with Samsung's plastic backs is that they have a cheesy-looking textured layer underneath clear. They are going for some visual interest, but it ends up looking greasy or even slimey. Bad taste. Like the clear vinyl covers that fussy housewives used to put over their sofas and chairs to keep them from getting stained.
If Apple does plastic, it will probably be simple and honest.
Mmm... I wouldn't be sure about that. If anything, it would replace the 4S.
It all depends on what this device is for. If it is for the U.S. market at all, I can guarantee you there will be no other iPhones for sale from Apple besides this one, and the 5S.
This device is not going to be dirt cheap, and it is not going to be the same cost as the flagship model. The only price points for it to enter, on-contract, are $0 and $99.
Now it is entirely possible, if they don't wish to do away with either of those price points, they simply make an 8 GB model and 16 GB model and call it $0 and $99.
Makes a lot more sense to me, and will be a lot less confusing to consumers. There is the "entry level iPhone" just like there are "entry level" MacBooks....$0 to $99 subsidized. And $399 to $449 off-contract. It is a consumer level iPhone (meaning, for people who think they want an iPhone but don't have $200 to spend, and wouldn't know the difference if they did).
It subtly reminds users of the 3GS/White MacBook days, and instantly strikes the right chord.
For everyone else, for everyone that has owned a 4S or a 5....your next iPhone will be the iPhone 5S.
Apple already has low-cost iPhones, namely the previous two generations (the iPhone 4 is $0 with contract). Why would they need to develop anything else?
If these renderings are anything, I would assume it to be the next iPod Touch, with a speaker to support FaceTime audio.
Right, because the "low cost" iPhone is going to be made out of the finest aluminium with the exacting chamfered edge. :rolleyes:
This thing will obviously have a much larger battery, and probably internals similar to whatever the previous generation had. If it is also made out of aluminium like this, is much cheaper, and can be bought off contract, that would cannibalise something like 90% of the sales of the "pro" iPhone. Who's gonna buy a $600 iPhone, when there is a $100-$200 one with double the battery life and slightly slower specs?
It has to be a different value proposition aimed at a different segment of the market. This thing is done up to be almost identical to the current iPhone 5.
First, there's no way in the world that it's going to be $100 or even $200. More like $400. So you're looking at $400 vs $650. Certainly in the range where lots of people would pay the difference even if the features are not too different.
Second, in the US, most phones are sold under contract. So it's a difference between $199 plus contract and, perhaps $0 plus contract. And plenty of people are buying iPhones or similarly priced phones from other vendors even when 'free' ones are available.
To imagine pricing for a new iPhone you have to look at current pricing. The base 16GB model is $649. I doubt that will change. It will get better specs and probably the base model will move to 32GB but I am confident that $649 price will stick.
That means the most likely price for a cheaper iPhone which would replace the 4/4S/5 models would very likely be a base model with a $449 price.
To imagine pricing for a new iPhone you have to look at current pricing. The base 16GB model is $649. I doubt that will change. It will get better specs and probably the base model will move to 32GB but I am confident that $649 price will stick.
That means the most likely price for a cheaper iPhone which would replace the 4/4S/5 models would very likely be a base model with a $449 price.
Flagship iPhone
32GB $199 on contract $649 unsubsidized
64GB $299 on contract $749 unsubsidized
128GB $399 on contract $849 unsubsidized
Cheaper iPhone
16GB free on contract $449 unsubsidized
32GB $99 on contract $549 unsubsidized
This guy gets it.
Although I'm 100% confident that the cheaper iPhone would come in at 8 GB & 16 GB. And that Apple's goal here would be to have the 8 GB model $0 w/contract...$399w/out. Yes, I think $399 is a stretch too, but I believe it to be their goal.
Will be interesting to see how Apple markets the lower-cost iPhone (if it really exists.) How will they prevent it from cannibalizing the high-end iPhone? How will they be able to stop gray market imports to the US from China or wherever it's going to be sold?
If Apple builds a lower-cost iPhone specifically for China Mobile, and if it only supports their oddball TD-SCDMA protocol, then that iPhone won't work anywhere else in the world. Right now, China Mobile is the only carrier that uses TD-SCDMA (because it allows them to avoid paying patent licensing fees.) Eventually, China Mobile will roll out their proprietary TD-LTE technology, so maybe the lower-cost iPhone could work with both TD-x protocols. Might be worth it, and there would be zero gray market for it (outside of China.)
Also, it's possible that the TD-SCDMA and TD-LTE technology could spread to other emerging markets. Again, because it doesn't require patent licensing fees. So the market for TD-x-only iPhones could increase over time, all without threatening the high-end iPhone in industrialized markets. Just a thought.
That's largely my scenario, the one issue is IIRC the new Qualcomm chip supports that TD-SCDMA and TD-LTE as well as all the others so the cutoff would be somewhere else.
Perhaps leaving the 4s/5/5s cycle in place for one more go-round (and could they just rejigger the port like with the iPad "4". Heck the phone 4 design is terrific and they just doubled their sales of them in China.....
The problem with Samsung's plastic backs is that they have a cheesy-looking textured layer underneath clear. They are going for some visual interest, but it ends up looking greasy or even slimey. Bad taste. Like the clear vinyl covers that fussy housewives used to put over their sofas and chairs to keep them from getting stained.
If Apple does plastic, it will probably be simple and honest.
Doesn't matter it's still plastic. Very little of Apple's product line is plastic. If they decided to go really cheap price wise then I could maybe see plastic. But if its still going to be expensive (say $400 off contract) I'm not sure they can get away with plastic even if its nice plastic like Nokia uses.
Doesn't matter it's still plastic. Very little of Apple's product line is plastic. If they decided to go really cheap price wise then I could maybe see plastic. But if its still going to be expensive (say $400 off contract) I'm not sure they can get away with plastic even if its nice plastic like Nokia uses.
I'm not sure at all who you imagine cares if its plastic or not...?
Perhaps leaving the 4s/5/5s cycle in place for one more go-round (and could they just rejigger the port like with the iPad "4". Heck the phone 4 design is terrific and they just doubled their sales of them in China.....
Apple likes simplicity and hates fragmentation and confusion. Continuing to sell a 3.5" phone that uses the old 30 pin connector seems unlikely. If all iPhones sold are standardized on a 4" display then all apps will move to that native resolution far faster. You would also see a massive increase in available lightning accessories by the elimination all 30 pin products from the line up which includes the iPad 2 as well. All lightning and all 4" phones this year will help streamline production and cause less confusion and fragmentation. Even if the internals of this new iPhone are essentially the same as the 4S or 5 it would also be better received simply because it is a new model. People like new over last year's model even if there is no improvements. Marketing 101. They will continue to sell the 4, 4S, and 5 until they deplete stock and save some for applecare replacements but I think that starting this year they will have 2 distinct and current product line and next year will introduce a larger display for a total of 3 lines. That will give them a very complete and solid line up at various price points and also cater to people who like the current size and though that require a larger display.
Comments
No, that is incorrect. They've had 6 years to NOT do it, because it wasn't financial viable. The only thing that HAS been financially viable is lowering the price on last year and the year before's model, because the infrastructure for building and manufacturing those products already existed.
I've long anticipated Apple stop doing that, and instead introduce a new product specifically for that price point. Basically a MacBook Air / MacBook Pro relationship.
Except the iPhone 5S isn't the "Pro" model, but rather the NEW model with the latest hardware, fastest stuff ever, etc. etc. and is $199 and up.
The new low-cost iPhone will, spec-wise, land somewhere in-between the iPhone 4S & iPhone 5. And it will REPLACE both of those devices on the market.
And that's as low as they need to go
I just don't buy that. We know that Samsung makes some amount of money by trying to break the world record for different kinds of fecal matter, and there's no way that all of that money is made simply by having saved on R&D costs by stealing from Apple.
Mmm... I wouldn't be sure about that. If anything, it would replace the 4S.
And what of iPad 2 and iPod Classic? Or the Apple-branded 30-pin USB cables and accessories?
Quote:
Originally Posted by Crowley
I think this, and the screen difference, is the most compelling reason to believe that there's any fire to these rumours. Normally I'd expect Apple to just carry on carrying on, doing exactly what they normally do. But if they keep their normal pattern of using last year's model as this year's cheap model, and with two iterations of old model, then that would mean they'd still be selling an iPhone with a dock connector and a 3.5" screen until fall 2014. I can't imagine anyone at Apple would be happy with that, I'm actually surprised they've kept selling the 4 and 4S for a whole year after their latest and greatest connector was introduced.
Both 4 and the 4S are gone in a couple months, and the lineup is all Lightning and all 4". That's my prediction. 5S at the top, 5 in the middle, and whatever this new one is called as the lowest cost iPhone available, where you would have normally expected the 4S to end up. Possibly a bit cheaper.
I think that makes sense. Plastic body, and 8GB only, and probably a bit thicker and weightier than its bigger siblings, but otherwise same/similar internals to the 4S - same camera, same 512MB RAM, etc.
This is what I expect too. They will the ditch the 3.5 screens. Other than that I hope they will have 2 models at the high end, one 4" screen and one 5" screen.
Originally Posted by AppleInsider
Market watchers believe such a device could allow Apple to tap into the fast-growing unsubsidized segment of the smartphone market.
Will be interesting to see how Apple markets the lower-cost iPhone (if it really exists.) How will they prevent it from cannibalizing the high-end iPhone? How will they be able to stop gray market imports to the US from China or wherever it's going to be sold?
If Apple builds a lower-cost iPhone specifically for China Mobile, and if it only supports their oddball TD-SCDMA protocol, then that iPhone won't work anywhere else in the world. Right now, China Mobile is the only carrier that uses TD-SCDMA (because it allows them to avoid paying patent licensing fees.) Eventually, China Mobile will roll out their proprietary TD-LTE technology, so maybe the lower-cost iPhone could work with both TD-x protocols. Might be worth it, and there would be zero gray market for it (outside of China.)
Also, it's possible that the TD-SCDMA and TD-LTE technology could spread to other emerging markets. Again, because it doesn't require patent licensing fees. So the market for TD-x-only iPhones could increase over time, all without threatening the high-end iPhone in industrialized markets. Just a thought.
Same way the 4 doesn't cannibalize the 5.
[QUOTE]How will they be able to stop gray market imports to the US from China or wherever it's going to be sold?[/QUOTE]
They won't, but people dumb enough to want one aren't the people they're selling to in the US right now, anyway. Win-win.
The problem with Samsung's plastic backs is that they have a cheesy-looking textured layer underneath clear. They are going for some visual interest, but it ends up looking greasy or even slimey. Bad taste. Like the clear vinyl covers that fussy housewives used to put over their sofas and chairs to keep them from getting stained.
If Apple does plastic, it will probably be simple and honest.
In some countries Apple will be required to put a warning disclaimer on it "This Apple is Not Edible"
It all depends on what this device is for. If it is for the U.S. market at all, I can guarantee you there will be no other iPhones for sale from Apple besides this one, and the 5S.
This device is not going to be dirt cheap, and it is not going to be the same cost as the flagship model. The only price points for it to enter, on-contract, are $0 and $99.
Now it is entirely possible, if they don't wish to do away with either of those price points, they simply make an 8 GB model and 16 GB model and call it $0 and $99.
Makes a lot more sense to me, and will be a lot less confusing to consumers. There is the "entry level iPhone" just like there are "entry level" MacBooks....$0 to $99 subsidized. And $399 to $449 off-contract. It is a consumer level iPhone (meaning, for people who think they want an iPhone but don't have $200 to spend, and wouldn't know the difference if they did).
It subtly reminds users of the 3GS/White MacBook days, and instantly strikes the right chord.
For everyone else, for everyone that has owned a 4S or a 5....your next iPhone will be the iPhone 5S.
This all makes too much sense to ignore.
I wouldn't count on the iPad 2 existing beyond October of this year...and the iPod Classic is hardly significant enough to matter.
The people (blog journalists) that keep claiming that this device is for "Farmers in China in India" EMERGING MARKETZ!!!
...Have absolutely no idea what they're talking about, whatsoever.
If these renderings are anything, I would assume it to be the next iPod Touch, with a speaker to support FaceTime audio.
First, there's no way in the world that it's going to be $100 or even $200. More like $400. So you're looking at $400 vs $650. Certainly in the range where lots of people would pay the difference even if the features are not too different.
Second, in the US, most phones are sold under contract. So it's a difference between $199 plus contract and, perhaps $0 plus contract. And plenty of people are buying iPhones or similarly priced phones from other vendors even when 'free' ones are available.
By the way, artist: NICE RENDER!
To imagine pricing for a new iPhone you have to look at current pricing. The base 16GB model is $649. I doubt that will change. It will get better specs and probably the base model will move to 32GB but I am confident that $649 price will stick.
That means the most likely price for a cheaper iPhone which would replace the 4/4S/5 models would very likely be a base model with a $449 price.
Flagship iPhone
32GB $199 on contract $649 unsubsidized
64GB $299 on contract $749 unsubsidized
128GB $399 on contract $849 unsubsidized
Cheaper iPhone
16GB free on contract $449 unsubsidized
32GB $99 on contract $549 unsubsidized
This guy gets it.
Although I'm 100% confident that the cheaper iPhone would come in at 8 GB & 16 GB. And that Apple's goal here would be to have the 8 GB model $0 w/contract...$399w/out. Yes, I think $399 is a stretch too, but I believe it to be their goal.
Quote:
Originally Posted by SockRolid
Will be interesting to see how Apple markets the lower-cost iPhone (if it really exists.) How will they prevent it from cannibalizing the high-end iPhone? How will they be able to stop gray market imports to the US from China or wherever it's going to be sold?
If Apple builds a lower-cost iPhone specifically for China Mobile, and if it only supports their oddball TD-SCDMA protocol, then that iPhone won't work anywhere else in the world. Right now, China Mobile is the only carrier that uses TD-SCDMA (because it allows them to avoid paying patent licensing fees.) Eventually, China Mobile will roll out their proprietary TD-LTE technology, so maybe the lower-cost iPhone could work with both TD-x protocols. Might be worth it, and there would be zero gray market for it (outside of China.)
Also, it's possible that the TD-SCDMA and TD-LTE technology could spread to other emerging markets. Again, because it doesn't require patent licensing fees. So the market for TD-x-only iPhones could increase over time, all without threatening the high-end iPhone in industrialized markets. Just a thought.
That's largely my scenario, the one issue is IIRC the new Qualcomm chip supports that TD-SCDMA and TD-LTE as well as all the others so the cutoff would be somewhere else.
Perhaps leaving the 4s/5/5s cycle in place for one more go-round (and could they just rejigger the port like with the iPad "4". Heck the phone 4 design is terrific and they just doubled their sales of them in China.....
I'm not sure at all who you imagine cares if its plastic or not...?
Quote:
Originally Posted by jfc1138
Perhaps leaving the 4s/5/5s cycle in place for one more go-round (and could they just rejigger the port like with the iPad "4". Heck the phone 4 design is terrific and they just doubled their sales of them in China.....
Apple likes simplicity and hates fragmentation and confusion. Continuing to sell a 3.5" phone that uses the old 30 pin connector seems unlikely. If all iPhones sold are standardized on a 4" display then all apps will move to that native resolution far faster. You would also see a massive increase in available lightning accessories by the elimination all 30 pin products from the line up which includes the iPad 2 as well. All lightning and all 4" phones this year will help streamline production and cause less confusion and fragmentation. Even if the internals of this new iPhone are essentially the same as the 4S or 5 it would also be better received simply because it is a new model. People like new over last year's model even if there is no improvements. Marketing 101. They will continue to sell the 4, 4S, and 5 until they deplete stock and save some for applecare replacements but I think that starting this year they will have 2 distinct and current product line and next year will introduce a larger display for a total of 3 lines. That will give them a very complete and solid line up at various price points and also cater to people who like the current size and though that require a larger display.