Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Mobile Tech
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Will 2013 See a Lower-Priced iPhone?
Will 2013 See a Lower-Priced iPhone?

By Barry Levine
January 9, 2013 11:17AM

    Bookmark and Share
A lower-priced iPhone could end up taking customers away from the higher-priced iPhone, a dilemma created by the fact that, if you wanted the latest iPhone before, you only had the higher-priced choice. Some say Apple might introduce a lower-priced model only in markets where it does not threaten its base, such as outside of North America or Europe.
 


Is Apple, known for its premium-priced products, preparing to release a low-priced iPhone to compete with the flurry of rivals? A new report says yes.

The report, in Wednesday's Wall Street Journal, said the company's work on a lower-end model represents a "big shift" in its corporate strategy, as its position among smartphones has been challenged on both the high and low ends. The report cited "people briefed on the matter."

The Journal's sources said that, while such a model has been discussed by outsiders and considered by Apple for years, this time the work is progressing and such a device could be launched later in 2013. Apple has declined to comment.

Less-Expensive Casing

Such a lower priced model could provide many of the same features and functions as the standard iPhone, but could make up most of the savings with a less-expensive casing made of polycarbonate plastic instead of the iPhone 5's aluminum one.

Apple has been finding its worldwide market share of handsets slipping. For instance, its third-quarter 2012 share was 14.6 percent of worldwide smartphone shipments, a drop from 23 percent in the first quarter. At the same time, Samsung Electronics' was 31.3 percent in the third quarter. In the U.S., the iPhone is still the top-selling smartphone.

Since the iPhone's launch in 2007, Apple has sold only one latest iPhone, with storage variations, although earlier models have remained for sale when new versions came out. Under the new management of CEO Tim Cook, the company has begun to expand some of its product line, such as offering the iPad mini. But the company cannot afford to let the iPhone's market position slip, since it accounts for nearly half its total revenue.

News reports have indicated that the company has seriously considered a cheaper model before, such as prior to the launch of its iPhone 4 in 2010, but Apple dropped the idea for concerns about issues with manufacturing the various models simultaneously.

Has Not Chased Lowest Prices

The company has enjoyed high profit margins, which a lower-cost model could affect, but a cheaper phone could enlarge Apple's customer base -- especially in markets where carriers do not subsidize the high cost of the phone.

On the other hand, a lower-priced model could end up taking customers away from the higher-priced model, a dilemma created by the fact that, if you wanted the latest iPhone before, you only had the higher-priced choice. Some observers have suggested that Apple might introduce a lower-priced model only in markets where it does not threaten its higher-priced base, such as outside of North America or Europe.

Ross Rubin, principal analyst for Reticle Research, noted that Apple has traditionally "not tried to chase the lowest price point segment of a market," but, on the other hand, he pointed out that the company offered a lower price with a different form factor for the iPod and the iPad.

Rubin also said that, while phones subsidized by carriers are the dominant model in the U.S., the small prepaid market is growing here, and is more robust in other markets -- which are primarily occupied by Android phones.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   OnePlus One Boasts Android Weapon
2.   Samsung: $2.2B Too Much for Apple
3.   Review: Windows Phone Advances
4.   Microsoft-Nokia Deal Closes this Week
5.   Samsung Data Center Catches Fire


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
OnePlus One Boasts Android Weapon
Smartphone could shake up market.
Average Rating:
Samsung: $2.2B Too Much for Apple
Says $38.4M more like it for patents.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
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.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

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