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 Cheaper iPhone See Light of Day?
DDoS Protection Powered By Verisign
Will a Cheaper iPhone See the Light of Day?
Will a Cheaper iPhone See the Light of Day?
By Adam Dickter / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JANUARY
12
2013


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?"

Read more on: Apple, iPhone, Smartphone
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 Data Center 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
Samsung Maps Its Way with Nokia's 'Here' App for Galaxy Phones
Korean electronics giant Samsung has opted to license Here, Nokia’s mapping app -- formerly know as Nokia Maps -- for its Tizen-powered smart devices and Samsung Gear S wearable.
 
iPhone 6 May Do NFC-Based Mobile Payments
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 
Apple Loses Bid To Block Sales of 9 Samsung Phones
A federal judge has rejected Apple's attempt to block the sale of several older Samsung smartphones that copied features in the iPhone, saying Apple hadn't proven the intellectual theft hurt sales.
 

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.