Mobile Tech Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Product Reviews for Mobile Tech Users
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Wednesday, April 16th 
Real-time info services with Neustar
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Laptops & Tablets
Mobile Phones
Mobile Gadgets
Mobile Apps
BYOD & MDM
iPad
Mobile Industry News
Wireless Connectivity
Wireless Security
GPS & Maps
MTT Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Mobile Phones

Will a Cheaper iPhone See the Light of Day?

Will a Cheaper iPhone See the Light of Day?
January 12, 2013 1:44PM

Bookmark and Share
"There will always be a possibility of Apple trying to make a lower-cost line of iPhones," said analyst Mike Morgan. "However I would also say that when or if Apple does release or make this cheaper model, it would be a signal to the market that Apple can no longer find a way to increase the penetration of its high-cost, high-margin original iPhone."

Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.

As smartphones go, Apple's basic 16-gigabyte iPhone model isn't a bank account buster, at $199 with a two-year plan. But buy the iPhone 5 directly from Apple unlocked, and you're talking a hefty $649.

So it's not hard to believe that, as cheaper phones with prepaid plans start to gain momentum, Apple might be looking for a model with lower production costs for emerging markets, or even for budget-conscious U.S. customers.

Recycled Innards?

Such rumors have bounced around before, and gained a new life earlier this week with a report from The Wall Street Journal saying a new model might look much the same as the current iPhone but with a polycarbonate plastic shell and perhaps components from recycled iPhones. That model could launch by the end of the year.

The report cited people who have been briefed on the matter as the source and said the plan was progressing. Apple declined to comment to the Journal and did not respond to our e-mails seeking comment.

The Shanghai Evening News initially published an interview with Apple's senior vice president of marketing, Philip Schiller -- seemingly in response to the cheap iPhone reports -- saying Apple will continue making the best products and "never blindly pursue market share."

The paper later revised the story to remove the emphasis on smartphones and maintained a reference to a "cheaper, low-end product," Reuters reported. Apple acknowledged to the wire service that it contacted the Chinese paper to amend the article, suggesting that Schiller had not in fact ruled out the cheaper phone.

For a perspective, we asked two analysts if they envisioned a plastic, refurbished iPhone to make its way into sales channels any time soon and they were skeptical.

"Making a cheaper iPhone would not have to hurt Apple's cachet if it was executed properly," said Mike Morgan of ABI Research.

Too High a Price

"As I look at the economics of Apple and its iPhone business, I would say that there will always be a possibility of Apple trying to make a lower-cost line of iPhones. However I would also say that when or if Apple does release or make this cheaper model, it would be a signal to the market that Apple can no longer find a way to increase the penetration of its high-cost, high-margin original iPhone. Over the long term, I believe that it would not make great financial sense for Apple to trade market share for product margin."

Gartner Research analyst Ken Dulaney said Apple already has a low-cost iPhone option in the 4 and 4S, available for free or for $99 respectively, with a contract. The iPhone 4 sells for $450 unlocked.

"They are just saying that they don't want to deliver low functionality...that Apple stands for the best," Dulaney said. "That approach is an approach and its fine. Why does everyone have to deliver everything?"

Tell Us What You Think
Comment:

Name:



 Mobile Phones
1. Report: Amazon Phone To Feature 3D
2. Review: Galaxy S5 Features Useful
3. Galaxy S5 Won't Sway iPhone Lovers
4. Charge a Phone in 30 Seconds? Done
5. HTC Loses $62M, Pins Hopes on M8




 Most Popular Articles
1. Will Satya Nadella Launch an Office for iPad?
2. Google Unveils Android Wear for Smart Watches
3. Microsoft Targets Evernote with Free OneNote, New Mac Version
4. HP Rolls Out New Software-Defined Network Products
5. Smartphone Kill Switch Could Save Users $2.6B a Year

Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  Twitter Acquires Data Analyzer Gnip
  NSC Backs Disclosing Vulnerabilities
  iPad Hacker Conviction Overturned
  Report: Amazon Phone To Feature 3D
  Review: Galaxy S5 Features Useful

 Technology Marketplace

Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
BMC's I.T. solutions unleash the power of your business
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise Hardware
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise I.T.
BMC's I.T. solutions unleash the power of your business
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Tips To Defeat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
NSC Backs Disclosing Software Vulnerabilities
Disclosing vulnerabilities in commercial and open source software is in the national interest and shouldn't be withheld unless there is a clear need, says the National Security Council.
 
Heartbleed Flaw Affects Hardware, Too
It appears the Heartbleed security bug affects not just Web sites, but also the networking equipment that connects businesses and homes to the Net, including Cisco and Juniper's equipment.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Is Amazon Launching a 3D Smartphone?
Once known for selling books on an e-commerce platform, Amazon is now a bona fide hardware maker -- and it's reportedly rolling out an innovative smartphone with a 3D screen.
 
Review: S5 Features Useful, Less About Gimmicks
There's a lot to like about Samsung's new Galaxy S5 smartphone -- among them, its relative lack of features. Samsung chose to focus on features people might actually want, not gimmicks.
 
Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
The Samsung Galaxy S5 hits store shelves on Friday and the reviews are starting to pour in. The question is: Can the latest in the Galaxy line grab more market share from Apple’s iPhone?
 

Navigation
Mobile Tech Today
Home/Top News | Laptops & Tablets | Mobile Phones | Mobile Gadgets | Mobile Apps | BYOD & MDM | iPad
Mobile Industry News | Wireless Connectivity | Wireless Security | GPS & Maps | MTT Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Mobile Tech Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.