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 23rd 
24/7/365 Network Uptime!
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. OnePlus One Boasts Android Weapon
2. Review: Windows Phone Advances
3. Project Ara Phone Version Ahead
4. Cortana Fills Windows Phone Gap
5. Galaxy S5 Phone: Less Can Be More




 Most Popular Articles
1. Google Glass Finds a Home in Medical Education, Practice
2. HP Rolls Out New Software-Defined Network Products
3. Smartphone Kill Switch Could Save Users $2.6B a Year
4. Avaya Aims To End Network Waiting Game
5. Google Video Shows Off Modular Project Ara Phone

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

  OnePlus One Boasts Android Weapon
  Samsung Gear Fit Geared for Exercise
  Google Sharpens Contact Lens Vision
  Samsung: $2.2B Too Much for Apple
  Review: Windows Phone Advances

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
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
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
White House Updating Online Privacy Policy
A new Obama administration privacy policy explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites, saying much is in the public domain.
 
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.