News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED
Let an ISACA® certification elevate your career.
Register today and save
You are here: Home / Mobile Tech / Will 2013 See a Lower-Priced iPhone?
DDoS Protection Powered By Verisign
Will 2013 See a Lower-Priced iPhone?
Will 2013 See a Lower-Priced iPhone?
By Barry Levine / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JANUARY
09
2013


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:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN MOBILE TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Dairy Queen is known for its hot fries and sweet treats, but it just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
HP Previews ProLiant Gen9 Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 

Mobile Technology Spotlight
Apple Sets Sept. 9 Event: iPhone 6, iWatch on Tap?
Save the date. Apple formally announced that its long-anticipated “special event," will take place on September 9. Does the tech giant have the iPhone 6, and the iWatch up its sleeve?
 
Samsung's New Smart Watch Makes Calls Without Phone
Following up on the Gear 2, Samsung has unveiled a new 3G smart watch, the Gear S, that stands out in its ability to make phone calls and send text messages without a smartphone.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

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 | CRM Systems | 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

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.