Yet another B.S. rumor but, if true, it means Tim Cook and the upper management of Apple have lied through their teeth. We are always hearing that "We won't make or sell junk" and that "Customer experience is paramount with us."
This rumored abomination would break both of those statements and make liars out of the Apple brass.
Marketing is marketing. I'm personally convinced a less-expensive plastic-encased iPhone is gonna happen. There's as much smoke rising from this rumor as there was for the iPad Mini, so there's a fire going IMO. But that doesn't make Cook and the rest of Apple management liars.
I believe they can make a cheaper phone with a premium feel. The last round of plastic MacBooks were really nice. Imagine a sharp-looking plastic case with the internals of the 4s for $199 no contract. I think people will feel happier with "the less expensive iphone" than "the old iphone"
3GS uses a 3.5" 480x320 TN display so even if you use a more modern ASIC you still have that working against you. If this rumour is true it's going to be a quality device that can reach markets previously noted. I would be surprised to see this sold in the US.
I can't imagine Apple trying to sell this only in developing markets. They've never done such a thing, and it would create a very unseemly grey market industry. The challenge is for them to find a product that appeals in developing markets, as well as in Europe and the US (i.e. for kids, or people who just want a decent phone ... those people do still exist), without taking too much from the flagship iPhone sales.
One issue is how much memory they'll put in this thing. Maybe only an 8GB version?
How much does using plastic over aluminum (or something else) reduce the BOM? Could this maybe be a phone for China only? A thicker, plastic iPhone....I'm just not feeling it.
I can't remember exactly, but I think companies like AT&T and Verizon get their money back on their subsidy around the 14th or 15th month of a 2 year contract for an average iPhone.
It's 14 months for other smartphones. AT&T says 20 months for the iPhone, which matches what Sprint has said about it being 40% higher that other smartphones, and it also matches the new VZ and ATT requirements that at least 20 months of a contract must be completed before you can upgrade to a new phone.
3GS uses a 3.5" 480x320 TN display so even if you use a more modern ASIC you still have that working against you. If this rumour is true it's going to be a quality device that can reach markets previously noted. I would be surprised to see this sold in the US.
I can't see this being sold in the US either. I wonder if Apple's have a difficult time working out a deal with China Mobile and need something lower cost specifically to make a deal happen.
You know, let's give Apple a chance instead of making assumptions and crucifying them bsed on these rumors. Look at the iPad mini. Apple managed to make a smaller iPad that is significantly cheaper than the full sized one, but still maintain excellent build quality. I'm sure whatever Apple comes up with, the thing will be well built, even if it includes plastic. This is not going to be some flimsy plastic Samsung garbage. Apple has shown no signs that it's standards have fallen when it comes to build quality, their new products has proven this. The market is constantly changing, and I trust Apple to respond appropriately. They know that releasing a shitty flagship product will deeply damage their brand name, I'm not worried about that. Some plastic, if implemented correctly, is not the end of the world.
It's 14 months for other smartphones. <span style="font-size:13px;line-height:1.231;">AT&T says 20 months for the iPhone, which matches what Sprint has said about it being 40% higher, and also matches the new VZ and ATT requires that at least 20 months of a contract must be completed before you can upgrade to a new phone.</span>
AT&T upgraded me after 9 months. All I had to do was tell them I wanted out of my contract to go Verizon and they upgraded my phone without charging me an upgrade fee.
For post-paid carriers, yeah it's not worth it because they've built subsidies into their data plans. But pay-as-you-go is growing in the United States just as it's a huge presence in other companies. Even aside from that model, Tmobile has an unlimited everything plan for $50/month -- the only catch is that they won't subsidize your phone.
I'll bet the phone will be $250 on the low end up to $350 on the high end. Apple always charges more than people think they should/could, and then sales and demand are better than expected. I also bet the phone will have a 50% gross margin.
They're going to make a great phone inexpensive. If it's like an Iphone 4, more or less in plastic I'll bet they can charge 250 and get to or near a 50% gross margin. Save a few bucks with a cheaper camera if necessary, ect.
If its more like a 4S, with better processor, better camera(s), ect, more like $350. 50% gross margin easy. Most of the parts, and all the expensive parts can be sourced for far less than what the tear downs calculated for 4 and 4S when they were released.
I think Apple always intended to do this project, they just wouldn't do it until it could be a great phone, with great margins, done inexpensively. Guess what else, if each one of these phones spends just $25 in the App Store over it's lifetime, that's an extra $7.50 of revenue to Apple per phone with a gross margin on that of probably 98%. They HAD to wait until it could be all of the above to protect the existing Iphone franchise.
I'd really not be surprised to see them go with a full system on a chip from Quallcom, if it can give good performance, with cost and power savings.
The processor will be pretty good, if it's an Apple processor, it would be bare minimum A4 and probably A5. I'm sure I'm not the only one who has played with a iphone4 and a 4S side by side. The 4S is so much smoother because the A5 processor is so much better.
Separately,
I also bet they we will see Iphone6 by Aug 1. It's not going to be the same materials as Iphone 5 either. They are going to build something that can fly down the lines, with no rejects. I am certain Tim Cook is sworn not to face another supply shortage.
I prefer my aluminum iphone 5 but I would consider this for my kids. And I am not saying this is a great idea by Apple but they will sell millions and it will cannibalize the iPhone 5s/whatever sales to some degree.
Comments
Quote:
Originally Posted by lkrupp
Yet another B.S. rumor but, if true, it means Tim Cook and the upper management of Apple have lied through their teeth. We are always hearing that "We won't make or sell junk" and that "Customer experience is paramount with us."
This rumored abomination would break both of those statements and make liars out of the Apple brass.
Marketing is marketing. I'm personally convinced a less-expensive plastic-encased iPhone is gonna happen. There's as much smoke rising from this rumor as there was for the iPad Mini, so there's a fire going IMO. But that doesn't make Cook and the rest of Apple management liars.
I believe they can make a cheaper phone with a premium feel. The last round of plastic MacBooks were really nice. Imagine a sharp-looking plastic case with the internals of the 4s for $199 no contract. I think people will feel happier with "the less expensive iphone" than "the old iphone"
Quote:
Originally Posted by SolipsismX
3GS uses a 3.5" 480x320 TN display so even if you use a more modern ASIC you still have that working against you. If this rumour is true it's going to be a quality device that can reach markets previously noted. I would be surprised to see this sold in the US.
I can't imagine Apple trying to sell this only in developing markets. They've never done such a thing, and it would create a very unseemly grey market industry. The challenge is for them to find a product that appeals in developing markets, as well as in Europe and the US (i.e. for kids, or people who just want a decent phone ... those people do still exist), without taking too much from the flagship iPhone sales.
One issue is how much memory they'll put in this thing. Maybe only an 8GB version?
Originally Posted by jakeb
Imagine a sharp-looking plastic case with the internals of the 4s for $199 no contract.
Locked to a carrier… carrier forces data anyway…
I just don't get the point of a "cheaper" device.
Quote:
Originally Posted by gwmac
I can't remember exactly, but I think companies like AT&T and Verizon get their money back on their subsidy around the 14th or 15th month of a 2 year contract for an average iPhone.
It's 14 months for other smartphones. AT&T says 20 months for the iPhone, which matches what Sprint has said about it being 40% higher that other smartphones, and it also matches the new VZ and ATT requirements that at least 20 months of a contract must be completed before you can upgrade to a new phone.
OK, there are about 70-80% of the iPhone users using a case. How would a cheap iPhone be distinguishable from the expensive iPhone 5?
Quote:
Originally Posted by rsdofny
OK, there are about 70-80% of the iPhone users using a case. How would a cheap iPhone be distinguishable from the expensive iPhone 5?
Heck, the first thing the case makers would probably do, is come up with one that makes it look like the more expensive iPhone from across a room !
The plastic body will allow for less complicated and cheaper antenna system.
It will also allow them to manufacture less expensively due to
1)the build process will be faster - less man hours or run the line faster
2)less rejects, scratches, parts not quite fitting, ect
3)materials slightly cheaper
Quote:
Originally Posted by Tallest Skil
Locked to a carrier… carrier forces data anyway…
I just don't get the point of a "cheaper" device.
For post-paid carriers, yeah it's not worth it because they've built subsidies into their data plans. But pay-as-you-go is growing in the United States just as it's a huge presence in other companies. Even aside from that model, Tmobile has an unlimited everything plan for $50/month -- the only catch is that they won't subsidize your phone.
How will this be cheaper than the free iPhone 4?
I'll bet the phone will be $250 on the low end up to $350 on the high end. Apple always charges more than people think they should/could, and then sales and demand are better than expected. I also bet the phone will have a 50% gross margin.
They're going to make a great phone inexpensive. If it's like an Iphone 4, more or less in plastic I'll bet they can charge 250 and get to or near a 50% gross margin. Save a few bucks with a cheaper camera if necessary, ect.
If its more like a 4S, with better processor, better camera(s), ect, more like $350. 50% gross margin easy. Most of the parts, and all the expensive parts can be sourced for far less than what the tear downs calculated for 4 and 4S when they were released.
I think Apple always intended to do this project, they just wouldn't do it until it could be a great phone, with great margins, done inexpensively. Guess what else, if each one of these phones spends just $25 in the App Store over it's lifetime, that's an extra $7.50 of revenue to Apple per phone with a gross margin on that of probably 98%. They HAD to wait until it could be all of the above to protect the existing Iphone franchise.
I'd really not be surprised to see them go with a full system on a chip from Quallcom, if it can give good performance, with cost and power savings.
The processor will be pretty good, if it's an Apple processor, it would be bare minimum A4 and probably A5. I'm sure I'm not the only one who has played with a iphone4 and a 4S side by side. The 4S is so much smoother because the A5 processor is so much better.
Separately,
I also bet they we will see Iphone6 by Aug 1. It's not going to be the same materials as Iphone 5 either. They are going to build something that can fly down the lines, with no rejects. I am certain Tim Cook is sworn not to face another supply shortage.
Originally Posted by Proximityeffect
How will this be cheaper than the free iPhone 4?
It's for countries that don't have subsidies. Or so it's claimed.
Where's he going to find a citation for that? I would make a similar claim but just from pure observation.
That's what I said in a thread last week, but it seems like people would rather have a updated design than a refreshed 'old' looking 3GS.