Wednesday, February 16, 2011

Cheaper iPhone: Way To Go

Image representing Apple as depicted in CrunchBaseImage via CrunchBase
Forbes: Apple: Cheaper iPhone Could Expand Addressable Market By 6x: expand distribution to more carriers .... add the 8 largest carriers that do not currently offer the iPhone .... address the mass market by offering a reduced price version of the iPhone ..... the company is considering doing just that. The new version of the phone would have a much smaller screen size, and be sold to carriers for about half the price of the current iPhone ...... Apple’s move downscale would involve a non-data plan phone. ..... iPhone 5 .. to arrive in June ...... an iPhone without a data plan. “Like the iPod Touch, this device would be able to handle music, movies, Internet (via WiFi or cellular), and third-party apps” ..... such a phone could sell for $149 and $199 at retail and require only a voice plan
An iPhone actually costs as much as a cheap Dell laptop. Think about it. That is ridiculous. You feel like you paid $200, when you actually paid more like $500. They put you on a monthly plan. Every month you pay a little bit for two years. It is like buying a house. The house takes 30 years, the iPhone takes two years. That is ridiculous.

Apple should try but I believe the mass market already belongs to Android. The neutered iPhones that Apple intends to serve for lower prices will be matched, have been matched by fully functional large screen Android phones in those same price ranges. Why not buy a full phone for cheap? Why buy an iPhone?

Apple does many things right. Price is not one of them.
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