Apple hints at a cheaper iOS phone...

[Pliablemoose]

The analyst says Cook “appeared to reaffirm the notion that Apple is likely to develop lower priced offerings” to expand the market for the iPhone. Cook said the company is planning “clever things” to address the prepaid market, and that Apple did not want its products to be “just for the rich,” and that the company is “not ceding any market.”

Cook is right, there's growth to be had in the lower end, particularly China and developing countries...

http://blogs.forbes.com/ericsavitz/2011/02/28/apple-plots-move-to-expand-iphones-market-share/

 

[zerocool84]

That's the reason why everyone is saying that Apple is going to have a lower priced phone. They can make as many in the margins and off apps as much as they want but the meat of the business is in the lower priced sector. Apple needs to do this and it'll only help them recapture a lot of the mobile growth it's lost to others because there are so many low priced Android and Nokia smartphones out there. People say iPhone is a premium product but it's not, it's priced exactly the same as any other top smartphone. This can only help Apple.

 

[s44]

Butbutbutbutbut... FRAGMENTATION!!!!one!!eleventy! The worst thing ever!!!!!!!!!!1

 

[ChAoTiCpInOy]

Their low end phone is usually the previous generation...

 

[purbeast0]

Their low end phone is usually the previous generation...

yea i heard a promo on the radio the other day about a $99 3GS phone. don't remember anything other than just hearing that part though.

 

[TheStu]

Butbutbutbutbut... FRAGMENTATION!!!!one!!eleventy! The worst thing ever!!!!!!!!!!1

If the screens maintain certain resolutions or aspect ratios, fragmentation is less of a problem. If all of them are updated on a set schedule, not at the whim of the individual carriers or OEMs, fragmentation is less of a problem.

 

[Pliablemoose]

Butbutbutbutbut... FRAGMENTATION!!!!one!!eleventy! The worst thing ever!!!!!!!!!!1

Fragmentation typically suggests a number of different OS's, not different models. Why would a cheaper phone have a different OS? Apple can slap it's most current OS on a cheaper phone and provide a decent value to the consumer, and spread development costs over the entire line, allowing it to have a lower profit margin on it's low end device and an App Store/iTunes delivery system.

Apple could instantly save $ on a device by using a cheaper shell, display, less memory, (Mobile Me is MIA at the moment and Apple's server farm in NC is ready to come online, think streamed music/cloud storage) and capacitive screen.

Android phones on a pay as you go plan have dipped below $150 on Virgin Mobile.

The other thing this would do is force carriers to compete on plan pricing. Also, this is a global device, Apple needs something cheap to sell in China, where most cell plans are pay as you go, and the phone cost isn't subsidized.

 

[hanoverphist]

yea i heard a promo on the radio the other day about a $99 3GS phone. don't remember anything other than just hearing that part though.

they were advertising 25 dollar 3gs a week or two ago here

 

[Bman123]

The iphone 3gs is cheap enough they need to make the damn bill cheaper

 

[ChAoTiCpInOy]

The iphone 3gs is cheap enough they need to make the damn bill cheaper

You're going to have to pay data either way. I mean $50 up front and $15 a month extra is not bad.

 

[theeedude]

Probably a good move overseas, but it remains to be seen if US prepaid operators play ball. The beauty of Virgin Mobile is not the $130 Optimus V, it's the $25 voice+data plan. The total 2 year cost is $730. Even if phone went to $200, it would still be a steal. But V-Mo is careful to not significantly cannibalize parent Sprint's sales by limiting phone selection to only lower end Android devices. A prepaid iPhone would need to be significantly lower end device than regular one for US prepaid operators, who are either owned by or use networks by the bigger post paid operators, to play ball. Alternatively, they would charge more for prepaid to avoid such cannibalization.

 

[zerocool84]

Probably a good move overseas, but it remains to be seen if US prepaid operators play ball. The beauty of Virgin Mobile is not the $130 Optimus V, it's the $25 voice+data plan. The total 2 year cost is $730. Even if phone went to $200, it would still be a steal. But V-Mo is careful to not significantly cannibalize parent Sprint's sales by limiting phone selection to only lower end Android devices. A prepaid iPhone would need to be significantly lower end device than regular one for US prepaid operators, who are either owned by or use networks by the bigger post paid operators, to play ball. Alternatively, they would charge more for prepaid to avoid such cannibalization.

Yes but this is mainly for overseas places where it'll have the biggest impact.