Yep. No way could they sell the 5 as the entry level version. As it stands, people complain and return the 5 for minor scratches, especially the black one multiple times, what kind of profits could they possibly make there when they are sold as budget models?
Not only that, on the 4, if the glass broke, they just switched it out no problem. Just one piece. Easy. On the 5 what do you do with scratched ones? Re-anodize them? If there is a ding? Replace the entire rear assembly for minor issues? The 5 was just not thought out well. They cannot sell it at a discount. No way, no how.
I'm not sure this post makes my point at all. There is nothing wrong with the iPhone 5. At least, this move isn't an acknowledgement of it...
The iPhone 5 won't have a place to exist, it will be redundant.
The 5S will (very likely) maintain the 5's design. And it will feature improved internals and cost $199.
The Lite will be $0 and $99.
The $0 Lite will be a 4" screen, lightning connector. Internals will be similar to iPhone 4S. Storage 8 GB.
The $99 Lite will be a 4" screen, lightning connector. Internals will be similar to iPhone 5. Storage 8 or 16 GB if they can swing it. Doubt the 16.
Apple is still selling a lot of 4 and 4S iPhones and price may not be the only reason. I think people know that Apple products are well made and are drawn to the option of getting high build quality at a reduced price. I believe there is a big demographic who want the precision metal phone and are willing to accept last year's model to get that in a more affordable phone.
I was recently helping two people shop for inexpensive pre-paid phones for talk and text. Most of the HTC, LG and Samsung phones we looked at felt very cheap, ran an unknown OS or ancient version of Android and had terrible reviews. One buyer insisted on a physical keyboard so I suggested an older model BlackBerry. She ignored me bought a cheaper BB style phone from LG and hates it. The other purchased an older model Nokia and loves it. Build quality matters, even at the low end of the price spectrum.
I believe the 4S will be removed from the price list (existing inventory will be sold at a discount until it's gone) so Apple can move all models to the lightning connector and 4" 640x1136 screen. It's replacement in the "free on contract" category will be the new plastic iPhone.
I believe we'll see:
Plastic iPhone 5L (with the processing power of the 4S, camera from the iPod touch and low storage capacity)
Metal iPhone 5 (current 16GB specs)
Metal iPhone 5S (new processor, new features, range of capacities and prices)
If Apple can't sell the iPhone 5 at a $100 discount without sacrificing most of that $100 then they might do something different. Likewise if they change screen technology again that could prompt a different lineup, but they changed screens last year and kept making the 4 and 4S with the old screens. Concern about a screen technology not suited to "low volume production" is irrelevant. Every model of iPhone sells tens of millions.
I don't think it will be the truth. Anyway I'm expecting to 5s and lite. And I saw this news shared by Aneesoft on Facebook yesterday:
Apple news: Apple gearing up iPhone 5S for output this month, analyst says. The iPhone 5S has a history at the rumor mill. Pictures in December showed an exterior identical to the iPhone 5, just a couple of months off the launch of the iPhone 5. Other pictures surfaced last month. More recently, a Korean news outlet expected a version of the iPhone 5S with LTE-Advanced technology.Anyway, Many fans are expecting to it.
I agree with those who suggest both the 4 and 4S will go away with the next update. And also the 5. Here is a write up I did on the subject at the request of an analyst I sometimes communicate with about Apple:
Apple's historic strategy of adding a new iPhone model and dropping the two-generations-old model is about to be radically altered. Under the current strategy, the 4 and 4S both share their display, majority of their outer case, and several internal components, but they don't have the same processor, camera, antenna, etc. Further, they share almost nothing with the iPhone 5. This limits the economies of scale Apple can achieve across its iPhone line.
Continuing this strategy as a new iPhone model is released this year would drop the 4, leaving the 4S as the only 3G iPhone, the only iPhone with a 3.5" display, and the only iPhone with the 30 pin connector. The economies of scale Apple gained by sharing components with the 4 will be gone.
Of course, by creating a 5S, those economies of scale would shift to the two iPhone 5 models, presumably the 5 and 5S. But this presents a different issue. Both the 5 and 5S, with a larger display and 4G connectivity, might be equally attractive to those upgrading from older models, so many current 3GS, 4, and 4S owners may choose to upgrade to the discounted 5 rather than the full-priced 5S, hurting Apple's margins.
What to do?
The rumors and videos indicating a new polycarbonate iPhone shell in multiple colors got me thinking about how Apple might maximize its economies of scale, eliminate the problem of customers upgrading to an expensive-to-produce but discounted iPhone 5, and allow Apple to offer a mid-priced iPhone to expand its reach globally.
I believe Apple will discontinue the 4, the 4S, and also the 5, at least in its current configuration. In their place Apple will introduce a new flagship model; let's call it the iPhone Pro (for lack of a better name). This model will be what many are expecting the 5S to be. Basically a refreshed iPhone 5, with potentially a higher resolution camera, maybe a fingerprint sensor (either built into the home button or into the display), an NFC chip, and maybe some other internal modifications.
Apple will also introduce the polycarbonate shelled model, called simply the iPhone (no version designation). This model will be the 5 repackaged into the new much-cheaper-to-produce-and-assemble plastic shell. It may also carry an NFC chip so that Apple can make a push into mobile payments, unless they intend to use another technology to accomplish this, such as Airdrop (which utilizes low-power, short range wifi), in which case neither new iPhone would need an NFC chip.
By dropping both the 4 and 4S, Apple eliminates two of the final three devices using the old 30 pin connector (the third being the iPad 2), and avoids orphaning the 4S as the only 3.5" and 3G-only iPhone.
By replacing the 4, 4S, and 5 with a single polycarbonate shelled model in multiple colors, Apple increases its economies of scale, utilizing the iPhone's most expensive component (the 4" display) across the iPhone Pro, the iPhone, and the iPod Touch as well as reducing the number of different CPUs, battery form factors, cellular radios, antennas, and possibly other internals needed to produce its iPhone and iPod Touch lines.
The new iPhone, because it will come in a tough polycarbonate shell, will not require customers to purchase a protective case, reducing their overall outlay when purchasing the phone. And because it will come in multiple colors, customers will also have less need for a case to add their own fashion statement to the phone. And Apple can occasionally add or change available colors, as they occasionally do to promote a specific cause, like the (PRODUCT) RED color offered on the iPod Touch to support the fight against AIDS. (Breast Cancer Awareness pink might be quite popular.)
Apple's inventory management would be made simpler with just two iPhone models. Today, inventory management across three models (4, 4S, and 5) has implications deep into Apple's supply chain, as Apple must order separate CPUs for all three models, separate displays between the 4/4S versus 5, separate cellular radios between the 4/4S versus 5, etc. This in addition to the differences in cellular radios between carriers (Verizon versus AT&T, for example); differences that would remain but would be reduced with all iPhones supporting 4G. Overall, the number of components that reach deep into the supply chain would be significantly reduced. This would be offset only slightly with the added inventory balancing needed to ensure appropriate supplies of available colors, but both shell colors and storage options are easier to deal with. Both are readily sourced and can be stockpiled well in advance; both are relatively cheap so stockpiling would not incur significant costs to Apple. Stockpiling lots of shells in multiple colors means Apple can react more quickly to regional or demographic trends that affect consumer color choices.
The new iPhone, because it will be cheaper to build and because, as a single model, it will provide much better economies of scale versus the old strategy of two discounted models, can be priced lower while still yielding strong margins. I'm thinking Apple could offer this model starting at 8GB in the $429 price range, with the 16Gb model at $479, and then $100 more for each step up from there (to 32Gb and 64Gb). This will allow the phone to compete in the mid-priced tier globally while creating a price umbrella that nicely overlaps with the iPhone Pro, which would start at Apple's usual $650 for the 16Gb model, increasing by $100 for each step up in storage capacity.
By dropping both the 4 and 4S, Apple eliminates two of the final three devices using the old 30 pin connector (the third being the iPad 2), and avoids orphaning the 4S as the only 3.5" and 3G-only iPhone.
I agree with those who suggest both the 4 and 4S will go away with the next update. And also the 5. Here is a write up I did on the subject at the request of an analyst I sometimes communicate with about Apple:
Apple's historic strategy of adding a new iPhone model and dropping the two-generations-old model is about to be radically altered. Under the current strategy, the 4 and 4S both share their display, majority of their outer case, and several internal components, but they don't have the same processor, camera, antenna, etc. Further, they share almost nothing with the iPhone 5. This limits the economies of scale Apple can achieve across its iPhone line.
Continuing this strategy as a new iPhone model is released this year would drop the 4, leaving the 4S as the only 3G iPhone, the only iPhone with a 3.5" display, and the only iPhone with the 30 pin connector. The economies of scale Apple gained by sharing components with the 4 will be gone.
Of course, by creating a 5S, those economies of scale would shift to the two iPhone 5 models, presumably the 5 and 5S. But this presents a different issue. Both the 5 and 5S, with a larger display and 4G connectivity, might be equally attractive to those upgrading from older models, so many current 3GS, 4, and 4S owners may choose to upgrade to the discounted 5 rather than the full-priced 5S, hurting Apple's margins.
What to do?
The rumors and videos indicating a new polycarbonate iPhone shell in multiple colors got me thinking about how Apple might maximize its economies of scale, eliminate the problem of customers upgrading to an expensive-to-produce but discounted iPhone 5, and allow Apple to offer a mid-priced iPhone to expand its reach globally.
I believe Apple will discontinue the 4, the 4S, and also the 5, at least in its current configuration. In their place Apple will introduce a new flagship model; let's call it the iPhone Pro (for lack of a better name). This model will be what many are expecting the 5S to be. Basically a refreshed iPhone 5, with potentially a higher resolution camera, maybe a fingerprint sensor (either built into the home button or into the display), an NFC chip, and maybe some other internal modifications.
Apple will also introduce the polycarbonate shelled model, called simply the iPhone (no version designation). This model will be the 5 repackaged into the new much-cheaper-to-produce-and-assemble plastic shell. It may also carry an NFC chip so that Apple can make a push into mobile payments, unless they intend to use another technology to accomplish this, such as Airdrop (which utilizes low-power, short range wifi), in which case neither new iPhone would need an NFC chip.
By dropping both the 4 and 4S, Apple eliminates two of the final three devices using the old 30 pin connector (the third being the iPad 2), and avoids orphaning the 4S as the only 3.5" and 3G-only iPhone.
By replacing the 4, 4S, and 5 with a single polycarbonate shelled model in multiple colors, Apple increases its economies of scale, utilizing the iPhone's most expensive component (the 4" display) across the iPhone Pro, the iPhone, and the iPod Touch as well as reducing the number of different CPUs, battery form factors, cellular radios, antennas, and possibly other internals needed to produce its iPhone and iPod Touch lines.
The new iPhone, because it will come in a tough polycarbonate shell, will not require customers to purchase a protective case, reducing their overall outlay when purchasing the phone. And because it will come in multiple colors, customers will also have less need for a case to add their own fashion statement to the phone. And Apple can occasionally add or change available colors, as they occasionally do to promote a specific cause, like the (PRODUCT) RED color offered on the iPod Touch to support the fight against AIDS. (Breast Cancer Awareness pink might be quite popular.)
Apple's inventory management would be made simpler with just two iPhone models. Today, inventory management across three models (4, 4S, and 5) has implications deep into Apple's supply chain, as Apple must order separate CPUs for all three models, separate displays between the 4/4S versus 5, separate cellular radios between the 4/4S versus 5, etc. This in addition to the differences in cellular radios between carriers (Verizon versus AT&T, for example); differences that would remain but would be reduced with all iPhones supporting 4G. Overall, the number of components that reach deep into the supply chain would be significantly reduced. This would be offset only slightly with the added inventory balancing needed to ensure appropriate supplies of available colors, but both shell colors and storage options are easier to deal with. Both are readily sourced and can be stockpiled well in advance; both are relatively cheap so stockpiling would not incur significant costs to Apple. Stockpiling lots of shells in multiple colors means Apple can react more quickly to regional or demographic trends that affect consumer color choices.
The new iPhone, because it will be cheaper to build and because, as a single model, it will provide much better economies of scale versus the old strategy of two discounted models, can be priced lower while still yielding strong margins. I'm thinking Apple could offer this model starting at 8GB in the $429 price range, with the 16Gb model at $479, and then $100 more for each step up from there (to 32Gb and 64Gb). This will allow the phone to compete in the mid-priced tier globally while creating a price umbrella that nicely overlaps with the iPhone Pro, which would start at Apple's usual $650 for the 16Gb model, increasing by $100 for each step up in storage capacity.
Wow. Makes totally sense especially when you put economies of scale.
Thanks for the post. I'm pretty convinced this is the way Apple is going.
[actual post remitted due to length... scroll up to read it]
You nailed it, mate. Agreed on all points.
A less vital factor in the decision, but convenient side effect nonetheless, is that the oldest hardware revision that Apple will still be selling at any time is the previous year's iPhone, which will move the user base to more current hardware than the present mix. This could be marginally helpful as developers don't need to target older hardware to quite the same degree, as well as prevent users from being annoyed that their recently-purchased iPhone 4 is lacking some of the features of the latest iOS release.
The new rumour seems to be that there is an iPhone 5A. a 5B and at least a 5C arriving. These could well be all for the non US markets where sales have nigh on disappeared.
I'm thinking the 5A will be a revamped 4S, the 5B a revamped 5 and the 5C a 4.3" iPhone.
These will be in plastic and the iPhone 6 name will be kept for the gold standard launch. So a range of 4 new phones, 3 of them cheap in September to replace the current range?
Right you are. I did leave out the iPod Classic. I suppose Apple will swap out the connector on that at some point; this fall would be the appropriate time if indeed they are bent on getting past the old 30-pin connector.
Right you are. I did leave out the iPod Classic. I suppose Apple will swap out the connector on that at some point; this fall would be the appropriate time if indeed they are bent on getting past the old 30-pin connector.
We'll probably see the iPod line die before a Lightning iPod Classic ever comes.
Comments
Uh because they've never shifted from the old business model to the new model (Flagship + Lite = Lineup).
For that matter they've never released 2 newly designed iPhones at the same time, which they're about to do.
It's a change.
I'm not sure this post makes my point at all. There is nothing wrong with the iPhone 5. At least, this move isn't an acknowledgement of it...
The iPhone 5 won't have a place to exist, it will be redundant.
The 5S will (very likely) maintain the 5's design. And it will feature improved internals and cost $199.
The Lite will be $0 and $99.
The $0 Lite will be a 4" screen, lightning connector. Internals will be similar to iPhone 4S. Storage 8 GB.
The $99 Lite will be a 4" screen, lightning connector. Internals will be similar to iPhone 5. Storage 8 or 16 GB if they can swing it. Doubt the 16.
Apple is still selling a lot of 4 and 4S iPhones and price may not be the only reason. I think people know that Apple products are well made and are drawn to the option of getting high build quality at a reduced price. I believe there is a big demographic who want the precision metal phone and are willing to accept last year's model to get that in a more affordable phone.
I was recently helping two people shop for inexpensive pre-paid phones for talk and text. Most of the HTC, LG and Samsung phones we looked at felt very cheap, ran an unknown OS or ancient version of Android and had terrible reviews. One buyer insisted on a physical keyboard so I suggested an older model BlackBerry. She ignored me bought a cheaper BB style phone from LG and hates it. The other purchased an older model Nokia and loves it. Build quality matters, even at the low end of the price spectrum.
I believe the 4S will be removed from the price list (existing inventory will be sold at a discount until it's gone) so Apple can move all models to the lightning connector and 4" 640x1136 screen. It's replacement in the "free on contract" category will be the new plastic iPhone.
I believe we'll see:
Plastic iPhone 5L (with the processing power of the 4S, camera from the iPod touch and low storage capacity)
Metal iPhone 5 (current 16GB specs)
Metal iPhone 5S (new processor, new features, range of capacities and prices)
If Apple can't sell the iPhone 5 at a $100 discount without sacrificing most of that $100 then they might do something different. Likewise if they change screen technology again that could prompt a different lineup, but they changed screens last year and kept making the 4 and 4S with the old screens. Concern about a screen technology not suited to "low volume production" is irrelevant. Every model of iPhone sells tens of millions.
Quote:
Originally Posted by Tallest Skil
As that's what they've never done, why would it be the plan?
Maybe Apple doesn't want to be predictable.
I don't think it will be the truth. Anyway I'm expecting to 5s and lite. And I saw this news shared by Aneesoft on Facebook yesterday:
Apple news: Apple gearing up iPhone 5S for output this month, analyst says. The iPhone 5S has a history at the rumor mill. Pictures in December showed an exterior identical to the iPhone 5, just a couple of months off the launch of the iPhone 5. Other pictures surfaced last month. More recently, a Korean news outlet expected a version of the iPhone 5S with LTE-Advanced technology.Anyway, Many fans are expecting to it.
Apple's historic strategy of adding a new iPhone model and dropping the two-generations-old model is about to be radically altered. Under the current strategy, the 4 and 4S both share their display, majority of their outer case, and several internal components, but they don't have the same processor, camera, antenna, etc. Further, they share almost nothing with the iPhone 5. This limits the economies of scale Apple can achieve across its iPhone line.
Continuing this strategy as a new iPhone model is released this year would drop the 4, leaving the 4S as the only 3G iPhone, the only iPhone with a 3.5" display, and the only iPhone with the 30 pin connector. The economies of scale Apple gained by sharing components with the 4 will be gone.
Of course, by creating a 5S, those economies of scale would shift to the two iPhone 5 models, presumably the 5 and 5S. But this presents a different issue. Both the 5 and 5S, with a larger display and 4G connectivity, might be equally attractive to those upgrading from older models, so many current 3GS, 4, and 4S owners may choose to upgrade to the discounted 5 rather than the full-priced 5S, hurting Apple's margins.
What to do?
The rumors and videos indicating a new polycarbonate iPhone shell in multiple colors got me thinking about how Apple might maximize its economies of scale, eliminate the problem of customers upgrading to an expensive-to-produce but discounted iPhone 5, and allow Apple to offer a mid-priced iPhone to expand its reach globally.
I believe Apple will discontinue the 4, the 4S, and also the 5, at least in its current configuration. In their place Apple will introduce a new flagship model; let's call it the iPhone Pro (for lack of a better name). This model will be what many are expecting the 5S to be. Basically a refreshed iPhone 5, with potentially a higher resolution camera, maybe a fingerprint sensor (either built into the home button or into the display), an NFC chip, and maybe some other internal modifications.
Apple will also introduce the polycarbonate shelled model, called simply the iPhone (no version designation). This model will be the 5 repackaged into the new much-cheaper-to-produce-and-assemble plastic shell. It may also carry an NFC chip so that Apple can make a push into mobile payments, unless they intend to use another technology to accomplish this, such as Airdrop (which utilizes low-power, short range wifi), in which case neither new iPhone would need an NFC chip.
By dropping both the 4 and 4S, Apple eliminates two of the final three devices using the old 30 pin connector (the third being the iPad 2), and avoids orphaning the 4S as the only 3.5" and 3G-only iPhone.
By replacing the 4, 4S, and 5 with a single polycarbonate shelled model in multiple colors, Apple increases its economies of scale, utilizing the iPhone's most expensive component (the 4" display) across the iPhone Pro, the iPhone, and the iPod Touch as well as reducing the number of different CPUs, battery form factors, cellular radios, antennas, and possibly other internals needed to produce its iPhone and iPod Touch lines.
The new iPhone, because it will come in a tough polycarbonate shell, will not require customers to purchase a protective case, reducing their overall outlay when purchasing the phone. And because it will come in multiple colors, customers will also have less need for a case to add their own fashion statement to the phone. And Apple can occasionally add or change available colors, as they occasionally do to promote a specific cause, like the (PRODUCT) RED color offered on the iPod Touch to support the fight against AIDS. (Breast Cancer Awareness pink might be quite popular.)
Apple's inventory management would be made simpler with just two iPhone models. Today, inventory management across three models (4, 4S, and 5) has implications deep into Apple's supply chain, as Apple must order separate CPUs for all three models, separate displays between the 4/4S versus 5, separate cellular radios between the 4/4S versus 5, etc. This in addition to the differences in cellular radios between carriers (Verizon versus AT&T, for example); differences that would remain but would be reduced with all iPhones supporting 4G. Overall, the number of components that reach deep into the supply chain would be significantly reduced. This would be offset only slightly with the added inventory balancing needed to ensure appropriate supplies of available colors, but both shell colors and storage options are easier to deal with. Both are readily sourced and can be stockpiled well in advance; both are relatively cheap so stockpiling would not incur significant costs to Apple. Stockpiling lots of shells in multiple colors means Apple can react more quickly to regional or demographic trends that affect consumer color choices.
The new iPhone, because it will be cheaper to build and because, as a single model, it will provide much better economies of scale versus the old strategy of two discounted models, can be priced lower while still yielding strong margins. I'm thinking Apple could offer this model starting at 8GB in the $429 price range, with the 16Gb model at $479, and then $100 more for each step up from there (to 32Gb and 64Gb). This will allow the phone to compete in the mid-priced tier globally while creating a price umbrella that nicely overlaps with the iPhone Pro, which would start at Apple's usual $650 for the 16Gb model, increasing by $100 for each step up in storage capacity.
Don't forget the iPod Classic.
Quote:
Originally Posted by RadarTheKat
I agree with those who suggest both the 4 and 4S will go away with the next update. And also the 5. Here is a write up I did on the subject at the request of an analyst I sometimes communicate with about Apple:
Apple's historic strategy of adding a new iPhone model and dropping the two-generations-old model is about to be radically altered. Under the current strategy, the 4 and 4S both share their display, majority of their outer case, and several internal components, but they don't have the same processor, camera, antenna, etc. Further, they share almost nothing with the iPhone 5. This limits the economies of scale Apple can achieve across its iPhone line.
Continuing this strategy as a new iPhone model is released this year would drop the 4, leaving the 4S as the only 3G iPhone, the only iPhone with a 3.5" display, and the only iPhone with the 30 pin connector. The economies of scale Apple gained by sharing components with the 4 will be gone.
Of course, by creating a 5S, those economies of scale would shift to the two iPhone 5 models, presumably the 5 and 5S. But this presents a different issue. Both the 5 and 5S, with a larger display and 4G connectivity, might be equally attractive to those upgrading from older models, so many current 3GS, 4, and 4S owners may choose to upgrade to the discounted 5 rather than the full-priced 5S, hurting Apple's margins.
What to do?
The rumors and videos indicating a new polycarbonate iPhone shell in multiple colors got me thinking about how Apple might maximize its economies of scale, eliminate the problem of customers upgrading to an expensive-to-produce but discounted iPhone 5, and allow Apple to offer a mid-priced iPhone to expand its reach globally.
I believe Apple will discontinue the 4, the 4S, and also the 5, at least in its current configuration. In their place Apple will introduce a new flagship model; let's call it the iPhone Pro (for lack of a better name). This model will be what many are expecting the 5S to be. Basically a refreshed iPhone 5, with potentially a higher resolution camera, maybe a fingerprint sensor (either built into the home button or into the display), an NFC chip, and maybe some other internal modifications.
Apple will also introduce the polycarbonate shelled model, called simply the iPhone (no version designation). This model will be the 5 repackaged into the new much-cheaper-to-produce-and-assemble plastic shell. It may also carry an NFC chip so that Apple can make a push into mobile payments, unless they intend to use another technology to accomplish this, such as Airdrop (which utilizes low-power, short range wifi), in which case neither new iPhone would need an NFC chip.
By dropping both the 4 and 4S, Apple eliminates two of the final three devices using the old 30 pin connector (the third being the iPad 2), and avoids orphaning the 4S as the only 3.5" and 3G-only iPhone.
By replacing the 4, 4S, and 5 with a single polycarbonate shelled model in multiple colors, Apple increases its economies of scale, utilizing the iPhone's most expensive component (the 4" display) across the iPhone Pro, the iPhone, and the iPod Touch as well as reducing the number of different CPUs, battery form factors, cellular radios, antennas, and possibly other internals needed to produce its iPhone and iPod Touch lines.
The new iPhone, because it will come in a tough polycarbonate shell, will not require customers to purchase a protective case, reducing their overall outlay when purchasing the phone. And because it will come in multiple colors, customers will also have less need for a case to add their own fashion statement to the phone. And Apple can occasionally add or change available colors, as they occasionally do to promote a specific cause, like the (PRODUCT) RED color offered on the iPod Touch to support the fight against AIDS. (Breast Cancer Awareness pink might be quite popular.)
Apple's inventory management would be made simpler with just two iPhone models. Today, inventory management across three models (4, 4S, and 5) has implications deep into Apple's supply chain, as Apple must order separate CPUs for all three models, separate displays between the 4/4S versus 5, separate cellular radios between the 4/4S versus 5, etc. This in addition to the differences in cellular radios between carriers (Verizon versus AT&T, for example); differences that would remain but would be reduced with all iPhones supporting 4G. Overall, the number of components that reach deep into the supply chain would be significantly reduced. This would be offset only slightly with the added inventory balancing needed to ensure appropriate supplies of available colors, but both shell colors and storage options are easier to deal with. Both are readily sourced and can be stockpiled well in advance; both are relatively cheap so stockpiling would not incur significant costs to Apple. Stockpiling lots of shells in multiple colors means Apple can react more quickly to regional or demographic trends that affect consumer color choices.
The new iPhone, because it will be cheaper to build and because, as a single model, it will provide much better economies of scale versus the old strategy of two discounted models, can be priced lower while still yielding strong margins. I'm thinking Apple could offer this model starting at 8GB in the $429 price range, with the 16Gb model at $479, and then $100 more for each step up from there (to 32Gb and 64Gb). This will allow the phone to compete in the mid-priced tier globally while creating a price umbrella that nicely overlaps with the iPhone Pro, which would start at Apple's usual $650 for the 16Gb model, increasing by $100 for each step up in storage capacity.
Wow. Makes totally sense especially when you put economies of scale.
Thanks for the post. I'm pretty convinced this is the way Apple is going.
Because that's not at all what is going to happen and they're not at all the same device. Are you paying attention to this rumor at all?
Because you know, of course.
Then why are they doing exactly what idiots are telling them to do as of late?
Quote:
Originally Posted by pmz
I'm not sure this post makes my point at all. There is nothing wrong with the iPhone 5. At least, this move isn't an acknowledgement of it...
The iPhone 5 won't have a place to exist, it will be redundant.
The 5S will (very likely) maintain the 5's design. And it will feature improved internals and cost $199.
The Lite will be $0 and $99.
The $0 Lite will be a 4" screen, lightning connector. Internals will be similar to iPhone 4S. Storage 8 GB.
The $99 Lite will be a 4" screen, lightning connector. Internals will be similar to iPhone 5. Storage 8 or 16 GB if they can swing it. Doubt the 16.
To me it looks like there will only be the new plastic iPhone 5 (no way in hell it's called the iPhone lite" and the aluminum 5S, Just the two
Quote:
Originally Posted by RadarTheKat
[actual post remitted due to length... scroll up to read it]
You nailed it, mate. Agreed on all points.
A less vital factor in the decision, but convenient side effect nonetheless, is that the oldest hardware revision that Apple will still be selling at any time is the previous year's iPhone, which will move the user base to more current hardware than the present mix. This could be marginally helpful as developers don't need to target older hardware to quite the same degree, as well as prevent users from being annoyed that their recently-purchased iPhone 4 is lacking some of the features of the latest iOS release.
These could well be all for the non US markets where sales have nigh on disappeared.
Uh… what?
These will be in plastic and the iPhone 6 name will be kept for the gold standard launch.
So a range of 4 new phones, 3 of them cheap in September to replace the current range?
Right you are. I did leave out the iPod Classic. I suppose Apple will swap out the connector on that at some point; this fall would be the appropriate time if indeed they are bent on getting past the old 30-pin connector.
We'll probably see the iPod line die before a Lightning iPod Classic ever comes.