iPad mini isn't plastic. None of the iPods are plastic. Not sure why a lower cost iPhone would have to be plastic.
Plastic is much easier to get the signal in and out of the phone without losing quality or the signal itself. It wouldn't necessarily require massive antenna testing and engineering like the most recent versions of the iPhone did. I would like to see colored anodized aluminum like the current iPod Touch however like I said I think that would be expensive. Its a little different creating an aluminum iPad, even with LTE vs an aluminum iPhone where you hold it differently, put it up to your ear, etc...things you don't do with an iPad or iPad mini.
So with the advent of the new 5S, the 5 replaces the 4S in its current price point. Instead of the 4S replacing the 4 as the cheapest iPhone in the range, it is retired (along with the 4) and the new 'iPhone Lite' fills this price point. In this way Apple unifies the range to both 4 inch screen and Thunderbolt connection. But no change to their pricing strategy.
[SIZE=10pt]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.[/SIZE]
How does it do more harm? Both are selling well. Apple won't release a cheap iPhone with the same components as the current flagship. If it's going to release a low cost iPhone, why wouldn't they use previous years' components? I think it'll still be a rejiggered 4 with lightning, 3.5" screen and perhaps not all glass at say $350-400 off contract.
I think this comment is less credible than leaks of photos, etc. We have seen putative quotes from suppliers before. Most often, the supplier would retract their comments or claim to have been misquoted. The fact is that no single supplier would know what Apple's price will be. The fact is that while the company doing the final assembly may know about most of the parts going into a phone, they would not know how much Apple is paying for said parts.
I think, in the best case scenario, this executive is speculating. More likely, he has been misquoted. I would say, however, his speculation is based on rational thinking.
One more thought, Pegatron is a spinoff from Asus, for whatever that is worth.
Just a thought: what if Apple release an iPhone Lite at $329, same price as the lowest end iPad Mini? You can then buy an iPhone Lite and an iPad Mini for the price of an iPhone 5X / 6.
The iPhone Lite must be priced below $400. The iPhone 4 already occupies that price point but it's not consider the less expensive phone that people are looking for. Maybe with upgraded hardware, the value proposition will be different. But clearly, the market has spoken: $400 is not "cheap" enough.
Actual when I hear "cheap iPhone", I think they mean sub $300 off contract.
How does it do more harm? Both are selling well. Apple won't release a cheap iPhone with the same components as the current flagship. If it's going to release a low cost iPhone, why wouldn't they use previous years' components? I think it'll still be a rejiggered 4 with lightning, 3.5" screen and perhaps not all glass at say $350-400 off contract.
Both are doing well becuase it is basically free which is putting pressure on margins. I am assuming the new phone will have better margins than the 4/4s.
[SIZE=10pt]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. [/SIZE]
Seeing as China Mobile wants to control and receive a large cut from the App Store (according to rumor), I hope Apple never does a deal with them.
Both are doing well becuase it is basically free which is putting pressure on margins. I am assuming the new phone will have better margins than the 4/4s.
They are not free, just subsidized by the carriers. Lets say they are charging 450 and 550 for the 4 and 4S, respectively. Still higher than this cheap iPhone. Unless Apple uses cheap-ass components ( which is highly unlikely) or different case (possibly), margins would be lower.
So with the advent of the new 5S, the 5 replaces the 4S in its current price point. Instead of the 4S replacing the 4 as the cheapest iPhone in the range, it is retired (along with the 4) and the new 'iPhone Lite' fills this price point. In this way Apple unifies the range to both 4 inch screen and Thunderbolt connection. But no change to their pricing strategy.
Either this or apple is preparing to launch a phone that somehow distinguishes itself from the current lineup in a way nobody expects. Otherwise, this thing doesn't exist.
They are not free, just subsidized by the carriers. Lets say they are charging 450 and 550 for the 4 and 4S, respectively. Still higher than this cheap iPhone. Unless Apple uses cheap-ass components ( which is highly unlikely) or different case (possibly), margins would be lower.
For me its all about margins so if that is the case then I would not be for it. Increasing market share at the expense of margins is not the Apple way.
Being free or not free is just how you look at it. When i went in to buy an iphone for my son last month I walked out with a 4 and paid $0 for it. I understand it is subsidized by the carriers.
Either this or apple is preparing to launch a phone that somehow distinguishes itself from the current lineup in a way nobody expects. Otherwise, this thing doesn't exist.
In any case these rumors are way off.
Actually, the rumors aren't that far off-it's just a matter of picking the right one.
There are rumors of bigger iPhones, smaller iPhones, colored iPhones, thinner iPhones, iPhones with sharp corners, iPhones with rounded corners, iPhones with limited capabilities, iPhones will full capabilities, iPhones with capabilities no one has heard of, and on and on.
No matter WHAT happens, someone has predicted it. The only problem is that no one knows WHICH of the predictions will come true.
This makes no sense to me. The previous generation iPhones have been the cheaper models. I would rather have a high grade last generation model than a new, underpowered, plastic one.
Both are doing well becuase it is basically free which is putting pressure on margins. I am assuming the new phone will have better margins than the 4/4s.
For me its all about margins so if that is the case then I would not be for it. Increasing market share at the expense of margins is not the Apple way.
Being free or not free is just how you look at it. When i went in to buy an iphone for my son last month I walked out with a 4 and paid $0 for it. I understand it is subsidized by the carriers.
But being free in the way you are proposing does not put pressure on the margins.
Actually, the rumors aren't that far off-it's just a matter of picking the right one.
There are rumors of bigger iPhones, smaller iPhones, colored iPhones, thinner iPhones, iPhones with sharp corners, iPhones with rounded corners, iPhones with limited capabilities, iPhones will full capabilities, iPhones with capabilities no one has heard of, and on and on.
No matter WHAT happens, someone has predicted it. The only problem is that no one knows WHICH of the predictions will come true.
Fair enough, but I was referring to the rumors that they were preparing a cheap iPhone that has stripped out features in order to compete on the low end of the market.
I've been thinking that Apple, with about 275 carriers worldwide versus about 800 through which samsung sells its smartphones, should review the markets covered by the 500 carriers Apple does not sell through and select maybe 150 - 200 of those markets that would support a mid-priced iPhone and launch the new lower-cost iPhone into those markets along with select markets currently covered under Apple's existing carriers. This would expand Apple's reach while not threatening Apple's premium product offering and pricing in most of its premium markets, such as the U.S. (where I would not introduce the mid-priced iPhone). Any thoughts?
Actually, the rumors aren't that far off-it's just a matter of picking the right one.
There are rumors of bigger iPhones, smaller iPhones, colored iPhones, thinner iPhones, iPhones with sharp corners, iPhones with rounded corners, iPhones with limited capabilities, iPhones will full capabilities, iPhones with capabilities no one has heard of, and on and on.
No matter WHAT happens, someone has predicted it. The only problem is that no one knows WHICH of the predictions will come true.
Perfect! excellent post......i agree.....there are soooo many predictions and it will only get worse.....it is going to be a long summer of all kinds of predictions.
All this talk about what the case is going to be made of...that alone isn't going to make much of a price difference. So beyond the external appearance, what else might change to get the price lower? Less RAM, cheaper flash storage, simpler CPU/GPU, smaller battery, less capable camera(s), or eliminate one camera like the low-end Touch (that alone would probably save more money than changing the case)? Where can Apple make cuts to lower the price while still preserving a high-quality user eperience? Will iOS 7 run differently, perhaps forgo some of the fancy UI effects so it can run better on a lower-end processor?
And perhaps most importantly (to me at least) will anything be "crippled" artificially in order to better differentiate between a regular iPhone and the "cheap" model and provide an "up-sell" path? For example, maybe not allow tethering?
All just speculation of course, but why limit the fun to just talking about if the case will be aluminum or plastic?
But being free in the way you are proposing does not put pressure on the margins.
Not sure I follow you. If the 5 has margins around 55% and the 4 has margins around 40% (just rounding with these %'s) and more people flock to the 4 becuase they do not have to upfront anything with the carrier than that is bringing down their avg margins.
Comments
Plastic is much easier to get the signal in and out of the phone without losing quality or the signal itself. It wouldn't necessarily require massive antenna testing and engineering like the most recent versions of the iPhone did. I would like to see colored anodized aluminum like the current iPod Touch however like I said I think that would be expensive. Its a little different creating an aluminum iPad, even with LTE vs an aluminum iPhone where you hold it differently, put it up to your ear, etc...things you don't do with an iPad or iPad mini.
Apparently he didn't get the memo to double down on secrecy y'all.
A plastic phone will be thicker.
Actual when I hear "cheap iPhone", I think they mean sub $300 off contract.
How does it do more harm? Both are selling well. Apple won't release a cheap iPhone with the same components as the current flagship. If it's going to release a low cost iPhone, why wouldn't they use previous years' components? I think it'll still be a rejiggered 4 with lightning, 3.5" screen and perhaps not all glass at say $350-400 off contract.
I think, in the best case scenario, this executive is speculating. More likely, he has been misquoted. I would say, however, his speculation is based on rational thinking.
One more thought, Pegatron is a spinoff from Asus, for whatever that is worth.
Just a thought: what if Apple release an iPhone Lite at $329, same price as the lowest end iPad Mini? You can then buy an iPhone Lite and an iPad Mini for the price of an iPhone 5X / 6.
The iPhone Lite must be priced below $400. The iPhone 4 already occupies that price point but it's not consider the less expensive phone that people are looking for. Maybe with upgraded hardware, the value proposition will be different. But clearly, the market has spoken: $400 is not "cheap" enough.
Quote:
Originally Posted by jungmark
Actual when I hear "cheap iPhone", I think they mean sub $300 off contract.
How does it do more harm? Both are selling well. Apple won't release a cheap iPhone with the same components as the current flagship. If it's going to release a low cost iPhone, why wouldn't they use previous years' components? I think it'll still be a rejiggered 4 with lightning, 3.5" screen and perhaps not all glass at say $350-400 off contract.
Both are doing well becuase it is basically free which is putting pressure on margins. I am assuming the new phone will have better margins than the 4/4s.
Seeing as China Mobile wants to control and receive a large cut from the App Store (according to rumor), I hope Apple never does a deal with them.
They are not free, just subsidized by the carriers. Lets say they are charging 450 and 550 for the 4 and 4S, respectively. Still higher than this cheap iPhone. Unless Apple uses cheap-ass components ( which is highly unlikely) or different case (possibly), margins would be lower.
Either this or apple is preparing to launch a phone that somehow distinguishes itself from the current lineup in a way nobody expects. Otherwise, this thing doesn't exist.
In any case these rumors are way off.
Quote:
Originally Posted by jungmark
They are not free, just subsidized by the carriers. Lets say they are charging 450 and 550 for the 4 and 4S, respectively. Still higher than this cheap iPhone. Unless Apple uses cheap-ass components ( which is highly unlikely) or different case (possibly), margins would be lower.
For me its all about margins so if that is the case then I would not be for it. Increasing market share at the expense of margins is not the Apple way.
Being free or not free is just how you look at it. When i went in to buy an iphone for my son last month I walked out with a 4 and paid $0 for it. I understand it is subsidized by the carriers.
Actually, the rumors aren't that far off-it's just a matter of picking the right one.
There are rumors of bigger iPhones, smaller iPhones, colored iPhones, thinner iPhones, iPhones with sharp corners, iPhones with rounded corners, iPhones with limited capabilities, iPhones will full capabilities, iPhones with capabilities no one has heard of, and on and on.
No matter WHAT happens, someone has predicted it. The only problem is that no one knows WHICH of the predictions will come true.
This makes no sense to me. The previous generation iPhones have been the cheaper models. I would rather have a high grade last generation model than a new, underpowered, plastic one.
But being free in the way you are proposing does not put pressure on the margins.
Fair enough, but I was referring to the rumors that they were preparing a cheap iPhone that has stripped out features in order to compete on the low end of the market.
I've been thinking that Apple, with about 275 carriers worldwide versus about 800 through which samsung sells its smartphones, should review the markets covered by the 500 carriers Apple does not sell through and select maybe 150 - 200 of those markets that would support a mid-priced iPhone and launch the new lower-cost iPhone into those markets along with select markets currently covered under Apple's existing carriers. This would expand Apple's reach while not threatening Apple's premium product offering and pricing in most of its premium markets, such as the U.S. (where I would not introduce the mid-priced iPhone). Any thoughts?
Actually, the rumors aren't that far off-it's just a matter of picking the right one.
There are rumors of bigger iPhones, smaller iPhones, colored iPhones, thinner iPhones, iPhones with sharp corners, iPhones with rounded corners, iPhones with limited capabilities, iPhones will full capabilities, iPhones with capabilities no one has heard of, and on and on.
No matter WHAT happens, someone has predicted it. The only problem is that no one knows WHICH of the predictions will come true.
Perfect! excellent post......i agree.....there are soooo many predictions and it will only get worse.....it is going to be a long summer of all kinds of predictions.And perhaps most importantly (to me at least) will anything be "crippled" artificially in order to better differentiate between a regular iPhone and the "cheap" model and provide an "up-sell" path? For example, maybe not allow tethering?
All just speculation of course, but why limit the fun to just talking about if the case will be aluminum or plastic?
Quote:
Originally Posted by iaeen
But being free in the way you are proposing does not put pressure on the margins.
Not sure I follow you. If the 5 has margins around 55% and the 4 has margins around 40% (just rounding with these %'s) and more people flock to the 4 becuase they do not have to upfront anything with the carrier than that is bringing down their avg margins.