Why Not A Low Cost iPhone?

A895

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As we all know Apple is valuable, sells devices yoy and everything else. But why not do a lower cost iPhone? I seen before members here admantly say they do not need to, but what is a legitimate argument not to?

Not only will you capture more markets, you can spread the brand, get more device sales, and while lower cost does not mean more profit, it can lead to more profit if people decide to spend more next time on the higher end models. While the smartphone market is huge, there are still billions of people without a smartphone, and to get an iPhone in their hands the cost will have to come down.

And that isn't a bad thing, it shows that Apple is looking towards the future with lower cost devices so;

Why not a low cost iPhone?

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taz323

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Only Apple can answer for sure, as far as sales go, I don't see them complaining. For me i would rather pay for quality versing cheeper product.
 

Speedygi

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I'm pretty sure this topic has gone on here a few times before... I might have to dig up my notes on it haha (kidding).
 

LockOnTech

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I thought that is what the iPhone 5c and some of the 16gb rear facing camera delete iPod Touch was for?


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calebt

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What would a lower cost iPhone be, less quality materials and features?

They already have a lower priced iPhone keep selling the 5,5c and 5s at a lower price, at the same time keeping excellent quality.
 

A895

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What would a lower cost iPhone be, less quality materials and features?

They already have a lower priced iPhone keep selling the 5,5c and 5s at a lower price, at the same time keeping excellent quality.

They can't be bought by people in third world countries and still cost hundreds of dollars off contract, thatnis no way low cost.

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A895

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Only Apple can answer for sure, as far as sales go, I don't see them complaining. For me i would rather pay for quality versing cheeper product.

You would, but there are a lot of people who would enjoy a lower cost iPhone.

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taz323

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You would, but there are a lot of people who would enjoy a lower cost iPhone.

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Maybe, but how would you know, if they made a low cost iPhone it would be prob be less quality and would prob function as so. Cant speak for everyone. but me and the ones I know buy them because of how they work. Why would Apple want to mess with that.
 

calebt

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They arena cheap, a 5s is $500+ off contract. That isn't attainable for the demographic I am talking about.

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People who buy the iPhone tend to take very good care of them, with that said there are millions of used 4,4s, 5,5c and 5s at an affordable price still on the market.
 

A895

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Well whether you think it's good or not, that's not the demographic Apple cares about selling to. And since they are currently the most valuable US based company in the world, investors must think their strategy is working.

And IMO, and iPhone wouldn't be an iPhone if it was made of cheaper, inferior materials, slower processor, worse cameras, etc. and if Apple did produce a cheap iPhone, it would cheapen the Apple brand. They won't do that. The only thing I could ever see them doing is creating a subsidiary that then produced the cheap version and calling it something else and trying to hide the fact that they were behind it. Kind of like when Honda created Acura, Toyota created Lexus, and Nissan created Infiniti. For a long time, the base brands tried to hide the fact that the luxury brands belonged to them because they knew that nobody would want to buy a luxury Honda. With a cheap phone Apple would be in a similar (but reverse since the more expensive brand existed first) situation and wouldn't wanted to mess with their existing brand.

No one asks Rolls Royce to produce a cheap car. No one asks Chanel to make cheap handbags. No one asks Rolex to make cheap watches. No one asks Aston Martin to make a cheap car. No one asks Gucci to make cheap stuff. So why is Apple the only "luxury" product people seem to want the brand to sell a cheap version of ("luxury" is in quotes because it isn't really a luxury product like a 100K Ferrari).

Apple makes smartphone, smartphones in themselves aren't some luxury that should hard be to obtain. Apple makes good software and hardware and those with less buying power would benefit from good devices such as Apples.

Apple isn't Porsche Design smartphone or Vertu, it isn't luxurious really at all, that is all perception. The real luxury devices aren't available basically everywhere.

Cheapening the brand shouldn't be a consumers concern, the primary concern could be expanding the brand into more markets and getting even more customers. I mean as a company expansion into lower cost isn't some foreign concept. Virtually every company does it at some point in order to expand.

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A895

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People who buy the iPhone tend to take very good care of them, with that said there are millions of used 4,4s, 5,5c and 5s at an affordable price still on the market.

Or they can have a low.cost device built for those demographics instead of using an older device.

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A895

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Good point,saw a 5s here yesterday for 325.

That isn't low cost. Low cost is less than $300 brand new. Apples margins are huge and they have a lot in the bank, expanding into lower cost to get more customers is a no brainer. I mean the iPhone 5S was built for less than $300 a piece, they just have large margins.

And even though a price may be one.thing here it is a whole different price another place. I would wager the bulk of Apples cash comes from the U.S., outside of the U.S. Apple has a much smaller presence because of the more expensive prices and lack of subsidized contracts in other parts of the world.

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Ledsteplin

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What would a lower cost iPhone be, less quality materials and features?

They already have a lower priced iPhone keep selling the 5,5c and 5s at a lower price, at the same time keeping excellent quality.

Not the 5 though. They no longer make or sell new iPhone 5's. You can get a new iP 5c for free. But they're all 8 gb phones. You can get the 5s 16gb for $99.99 and the 32gb for $149.99. All on contract prices.


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the_tech_eater

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That isn't low cost. Low cost is less than $300 brand new. Apples margins are huge and they have a lot in the bank, expanding into lower cost to get more customers is a no brainer. I mean the iPhone 5S was built for less than $300 a piece, they just have large margins.

And even though a price may be one.thing here it is a whole different price another place. I would wager the bulk of Apples cash comes from the U.S., outside of the U.S. Apple has a much smaller presence because of the more expensive prices and lack of subsidized contracts in other parts of the world.

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All highend smartphone makers have huge margins(except one plus). The iPhone 6 costs $228.07 to build, and the Samsung Galaxy S5 costs $215.44.

Awesome interactive chart shows the cost of building every iPhone and Galaxy phone
http://bgr.com/2014/12/05/iphone-6-vs-galaxy-s5-price/


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LockOnTech

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All highend smartphone makers have huge margins(except one plus). The iPhone 6 costs $228.07 to build, and the Samsung Galaxy S5 costs $215.44.

Awesome interactive chart shows the cost of building every iPhone and Galaxy phone
http://bgr.com/2014/12/05/iphone-6-vs-galaxy-s5-price/


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Thanks for sharing the information, I was wondering this as well.


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