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  • Apple May Proceed with Cheaper Unsubsidized iPhone Next Year


    According to the latest informed word on the streets, Apple will begin offering an unsubsidized iPhone in 2013, possibly for as low as $200 by next year at this time.

    The outcome of that move could be a significant spike for Apple in emerging markets, where Apple is massively losing ground to Google. In these markets, less expensive Android devices are flooding the landscape and lending considerably to Android's climb in global market share.

    Piper Jaffray analyst Gene Munster said Friday that Apple is now expected to slash the unsubsidized cost of existing iPhone models to somewhere in the neighborhood of $200 within the next twelve months. That's down dramatically from the current $375 unsubsidized price for the 8GB iPhone 3GS.

    If this scenario plays out as expected, Munster believes Apple's global smartphone share will climb from 20 percent (in 2012) to 32 percent (in 2015). "We believe it is becoming increasingly possible for Apple to build the low end iPhone for $130-150, which would suggest a 25-35% gross margin," Munster told investors today. "While some investors may not like the margin dilution from a cheaper iPhone, we believe that view misses the bigger market share picture."

    Source: Wall Street Cheat Sheet
    This article was originally published in forum thread: Apple May Proceed with Cheaper Unsubsidized iPhone Next Year started by Michael Essany View original post
    Comments 14 Comments
    1. garfielgato2's Avatar
      garfielgato2 -
      Applauses clap clap! APPLE
    1. bigbaba's Avatar
      bigbaba -
      Marks the entrance of Apple into the crap-phone market.
    1. bigboyz's Avatar
      bigboyz -
      FINALLY!! Apple is doing what should have been done years ago..seeing the big picture. In order to stay competitive they have to have more options(not only hardware) but price options. Android has a slew of devices ranging from $0-whatever with a contract. Apple does not offer a free phone. If they can reach a decent price point, they will definitely sell more phones..can't wait to see what happens.
    1. GooseG's Avatar
      GooseG -
      Quote Originally Posted by bigboyz View Post
      FINALLY!! Apple is doing what should have been done years ago..seeing the big picture. In order to stay competitive they have to have more options(not only hardware) but price options. Android has a slew of devices ranging from $0-whatever with a contract. Apple does not offer a free phone. If they can reach a decent price point, they will definitely sell more phones..can't wait to see what happens.
      Uhhhh... Think before you say something so matter-of-fact. Apple does offer a free contract phone. It's the 3GS.
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by bigboyz View Post
      FINALLY!! Apple is doing what should have been done years ago..seeing the big picture. In order to stay competitive they have to have more options(not only hardware) but price options. Android has a slew of devices ranging from $0-whatever with a contract. Apple does not offer a free phone. If they can reach a decent price point, they will definitely sell more phones..can't wait to see what happens.
      And yet look at their stock prices and financials. Just imagine what Apple could be *if* the only would look at the big picture.
    1. kalpesh78's Avatar
      kalpesh78 -
      Quote Originally Posted by bigbaba View Post
      Marks the entrance of Apple into the crap-phone market.
      Ideally they shouldn't enter the cheap phone market. I'm just hoping the cheap phone looks completely different from the expensive one.
    1. brownlace's Avatar
      brownlace -
      That's interesting. I guess people are over this whole "exclusivity"
    1. mmaboi21's Avatar
      mmaboi21 -
      Don't make a cheap phone apple... Please?!

      Price wise, yes please do but don't lack quality. It would ruin their image as a top quality company. IMO
    1. AUZambo's Avatar
      AUZambo -
      Quote Originally Posted by GooseG View Post
      Uhhhh... Think before you say something so matter-of-fact. Apple does offer a free contract phone. It's the 3GS.
      That's what I'm thinking. People already have an option if they want an inexpensive iPhone. If Apple DOES go through with this it will be no different than a two year old product with a different label.
    1. *T*'s Avatar
      *T* -
      Quote Originally Posted by AUZambo View Post
      That's what I'm thinking. People already have an option if they want an inexpensive iPhone. If Apple DOES go through with this it will be no different than a two year old product with a different label.
      The 3GS doesn't have the right radio to be compatible globally
    1. daviedave's Avatar
      daviedave -
      Quote Originally Posted by AUZambo View Post
      That's what I'm thinking. People already have an option if they want an inexpensive iPhone. If Apple DOES go through with this it will be no different than a two year old product with a different label.
      The 3gs is a few generations old, but the new cheap iPhone model can be marketed as a new generation Apple branded product, I think this will make a difference. If Apple makes a >iPhone3gS spec'd product with lower quality Chinese material then it can directly compete with Huawei, Acer (some), etc. Android products. I bought my mom a cheap Android smartphone for <$250 with no contract. She loves the phone and I am happy!

      Stupid fanboys, Apple/Android love to have the greatest and newest not because they necessarily need one for work/ social life but because of the image.
    1. mmaboi21's Avatar
      mmaboi21 -
      Quote Originally Posted by daviedave View Post
      The 3gs is a few generations old, but the new cheap iPhone model can be marketed as a new generation Apple branded product, I think this will make a difference. If Apple makes a >iPhone3gS spec'd product with lower quality Chinese material then it can directly compete with Huawei, Acer (some), etc. Android products. I bought my mom a cheap Android smartphone for <$250 with no contract. She loves the phone and I am happy!

      Stupid fanboys, Apple/Android love to have the greatest and newest not because they necessarily need one for work/ social life but because of the image.
      Image?.. I know no such thing.
      Quality is why I'm here
    1. AUZambo's Avatar
      AUZambo -
      Quote Originally Posted by daviedave View Post
      The 3gs is a few generations old, but the new cheap iPhone model can be marketed as a new generation Apple branded product, I think this will make a difference. If Apple makes a >iPhone3gS spec'd product with lower quality Chinese material then it can directly compete with Huawei, Acer (some), etc. Android products. I bought my mom a cheap Android smartphone for <$250 with no contract. She loves the phone and I am happy!

      Stupid fanboys, Apple/Android love to have the greatest and newest not because they necessarily need one for work/ social life but because of the image.
      I don't disagree with you at all. Actually, that's basically what I was saying. A newer iPhone will really be nothing more than great marketing, which those with a lower phone budget will lap up. What those same people fail to realize is that they already have that option.
    1. Kenn@rd.'s Avatar
      Kenn@rd. -
      Quote Originally Posted by kalpesh78 View Post
      Ideally they shouldn't enter the cheap phone market. I'm just hoping the cheap phone looks completely different from the expensive one.
      Focken agree.