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Thread: Apple's Low-Cost iPhone Expected to be in the $350 - $450 Price Range

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  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default Apple's Low-Cost iPhone Expected to be in the $350 - $450 Price Range


    Apple recently surprised many people last year when it priced the iPad mini at $329, a number roughly $100 higher than the Amazon Kindle Fire and Google Nexus 7. The same premium approach is likely to be used to successfully introduce a more “affordable” iPhone according to a new analysis.

    According to Mark Moskowitz and Gokul Hariharan of J.P. Morgan, Apple is expected to sell a low-cost iPhone in the second half of 2013 priced between roughly $350 and $450. The cost is a bit higher than the number some market watchers are expecting. Rather than be disappointed by the price points, investors were told to view the iPad mini as a “winning template” for Apple’s strategy. Instead they believe a contract-free iPhone priced under $400 would be a “very attractive” product for many consumers.

    An iPhone priced between the price range of $350 and $450 would also affect market trends, lowering what J.P Morgan calls the “smartphone price pyramid.” According to Moskowitz and Hariharan, mid-level smartphones don’t see much volume at the moment but Apple could change the market trends with a reasonable priced iPhone, just like the company did with the iPad and iPod in the past. According to the two of them:

    Apple usually creates new demand when it steps into a price band — for example, the $300-$400 price range for tablets did not have much demand (most of the growth had been at the $499+ or $199 range) before the launch of the iPad mini. However, after the launch of Pad mini, this segment has become one of the largest parts of the market, even convincing many users to upgrade from cheaper tablets to the iPad mini.
    The Cupertino California company’s crossroads in the smartphone market is similar to where the company was 30 years ago in the PC space. At one point Apple had more than quarter of the PC market but it faced competition from IBM PC clones and Microsoft’s Windows platform. They continued by saying the following:

    If Apple doesn't move into the mainstream, then its ecosystem advantage (already has more than 300 million iCloud users) is likely to be eroded by Android, which is growing very quickly. The move to lower price points may come at the expense of margins in the short term, but we believe that the opportunity to expand the iOS ecosystem could pay off in the long term through non-product revenue streams.
    Ultimately we’ll have to wait and see what card Apple plays next but a low-cost iPhone could potentially be in the mix as it has been rumored for quite some time.

    Source: IDC, J.P Morgan via AppleInsider

    Twitter: @AkshayMasand

  2. #2
    My iPhone is a Part of Me
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    You can buy the iPhone 4 unlocked for $450, the cheaper iPhone has already been here for a year.

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    My iPhone is a Part of Me vinaygoel2000's Avatar
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    Quote Originally Posted by Scotty Manley Silberhorn View Post
    You can buy the iPhone 4 unlocked for $450, the cheaper iPhone has already been here for a year.
    You are trying to compare iPhone 4 with an unreleased phone. iPhone 4 is a defective phone, doesn't support 4G or LTE, doesn't support 5 Ghz wifi n, runs A4. What if the cheap new iPhone runs A6, supports LTE and 5 Ghz wifi n, doesn't suffer from antenna gate and has a plastic shell. There's no comparison. At least wait for the cheap iPhone to be released before starting to compare.

    Would I get the new cheap iPhone? Absolutely not.

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    What's Jailbreak? thazsar's Avatar
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    Quote Originally Posted by vinaygoel2000 View Post
    You are trying to compare iPhone 4 with an unreleased phone. iPhone 4 is a defective phone, doesn't support 4G or LTE, doesn't support 5 Ghz wifi n, runs A4. What if the cheap new iPhone runs A6, supports LTE and 5 Ghz wifi n, doesn't suffer from antenna gate and has a plastic shell. There's no comparison. At least wait for the cheap iPhone to be released before starting to compare.

    Would I get the new cheap iPhone? Absolutely not.
    I think Scotty is saying (like myself) that there is no cheaper iphone coming. The iPhone 4 'is' the cheaper iphone.

  5. #5
    huh? wiipro's Avatar
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    Low cost?

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    Quote Originally Posted by thazsar View Post
    I think Scotty is saying (like myself) that there is no cheaper iphone coming. The iPhone 4 'is' the cheaper iphone.
    Yes, why would they create a "cheap" iPhone that's as good as an expensive one? That doesn't make sense. If there was a "cheaper" iPhone coming. I doubt it would have all of the features like lte, a6, and 5ghz( which isn't a big deal). It would take away profits.

    Quote Originally Posted by vinaygoel2000 View Post
    You are trying to compare iPhone 4 with an unreleased phone. iPhone 4 is a defective phone, doesn't support 4G or LTE, doesn't support 5 Ghz wifi n, runs A4. What if the cheap new iPhone runs A6, supports LTE and 5 Ghz wifi n, doesn't suffer from antenna gate and has a plastic shell. There's no comparison. At least wait for the cheap iPhone to be released before starting to compare.

    Would I get the new cheap iPhone? Absolutely not.
    Also, the iPhone 5 has a design flaw also. If you set it face up on a metal surface, you lose all signal. So I've learned to not set it on a metal surface. Also, I think they fixed the antenna problems with the Verizon iPhone 4 design, didn't they?
    Last edited by Scotty Manley Silberhorn; 05-04-2013 at 04:46 PM.

  7. #7
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    I placed my iPhone5 on top of my MacAir.

    There was no loss of either 2G, 3G, LTE or WiFi signal.

    I think you made that up

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