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A few days ago we posted an article about Apple looking to set the next iPhone at a considerably cheaper level
than the ones that have been released in the past. In fact, the rumored
price is between $99 and $149, which would be a sharp price drop from
the latest iPhone.
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This device could be released as early as late 2013 and focus on attracting developing markets. The big one would be China where the current iPhone had good numbers.
Apple would also be better able to compete with Android devices that
have improved in quality and are gaining in market share. As the
differences between the iPhone and other devices become fewer, more
consumers are looking at the cheaper models.
The less expensive version would allow Apple to compete in markets that have only begun to adopt the smartphone.
A Change in Design?
For Apple to offer this discounted device, they would have to alter
their design. This could include a cheaper case and lower resolution
screen.
This is a completely new move for Apple, a company that has always
competed on the basis of offering new technology that no one else
offers. Analysts offer the suggestion that Apple’s innovation may be
slowing; therefore, allowing other companies to catch up to it and
reduce the difference between the companies.
The other side of the story is that emerging markets is where growth
is expected to be seen as other markets are already saturated. If this
is the case, price is going to be a prime point of the smartphone.
According to Bloomberg, the company has been involved in a less expensive phone since early 2011. However, an executive from Apple says
it won’t be making a cheaper phone in the near future. Is this the
final word or will we indeed see a less expensive Apple product in 2013?
As we watch Apple moving in new areas and doing things that is
against tradition such as offering a 7-inch tablet and now a less
expensive phone, one has to wonder: what would Steve Jobs think?
