[CAUTION: When I say cheap it does not mean cheap in quality]
The iPhone currently has 3
generations on sale each costing $450 or more .. And true a cheaper iPhone is required .. But the problem that the company faces is the production of these cheaper models. It is easy to say but Apple is not the one who does anything without thinking.
If they try to start the production of the cheaper iPhone, the will have to increase it 3 times more than the usual. Yes! Three times more. The reason is because they can't just afford to bring out 1 new cheaper model of iPhone in one or 2 countries and make expensive for others. It will be quite unfair and would affect the sales of older generations. They need to make it universal.
If they bring out, for example iPhone 5s the cheaper one, the demand for it will be unbelievable. No one will want an expensive one, and for that the prices of the existing phones i.e iPhone 4S ,5 would be needed to be dropped below the new iPhones price so as to equalize the prices and demand.
Now if the new iPhone costs at a starting price of $300(which is less than the current iPhone 4 ) the 4S will have to be $200 and the iPhone 5 $250.. Assuming the cost of production of one 4S is $200,it's obvious they won't sell it at $0 profit while tremendously decreasing their profits on the iPhone 5 in one shot! They will need a back up for their profits.. Some would say the new iPhone would cover up everything .. But as mentioned earlier , the production of the new iPhone will have to be increased much more than the previous (everyone wants cheap phones).
May be they require a cheaper phone .. But they need to start producing atleast a year in advance and much more than the existing.. They also need to reduce their profits steadily so when they launch the new cheap phone, they don't have to compromise on the profits of the old generation
For now, I think it's a good thought about a cheaper phone which is unlikely to happen but it doesn't depend on my description but a person more capable of analyzing all this better than me and for a company ..
Addition:
The iPad mini which was supposed to be a low cost iPad is still at a price higher than its competitors .. They have significantly reduced the starting price but its still a high-end ..
No quality compromisation is seen..
If they can achieve the sand thing with the iPhone then there is a ray of light that without compromising on quality they produced an elegant iPhone..
The iPhone currently has 3
generations on sale each costing $450 or more .. And true a cheaper iPhone is required .. But the problem that the company faces is the production of these cheaper models. It is easy to say but Apple is not the one who does anything without thinking.
If they try to start the production of the cheaper iPhone, the will have to increase it 3 times more than the usual. Yes! Three times more. The reason is because they can't just afford to bring out 1 new cheaper model of iPhone in one or 2 countries and make expensive for others. It will be quite unfair and would affect the sales of older generations. They need to make it universal.
If they bring out, for example iPhone 5s the cheaper one, the demand for it will be unbelievable. No one will want an expensive one, and for that the prices of the existing phones i.e iPhone 4S ,5 would be needed to be dropped below the new iPhones price so as to equalize the prices and demand.
Now if the new iPhone costs at a starting price of $300(which is less than the current iPhone 4 ) the 4S will have to be $200 and the iPhone 5 $250.. Assuming the cost of production of one 4S is $200,it's obvious they won't sell it at $0 profit while tremendously decreasing their profits on the iPhone 5 in one shot! They will need a back up for their profits.. Some would say the new iPhone would cover up everything .. But as mentioned earlier , the production of the new iPhone will have to be increased much more than the previous (everyone wants cheap phones).
May be they require a cheaper phone .. But they need to start producing atleast a year in advance and much more than the existing.. They also need to reduce their profits steadily so when they launch the new cheap phone, they don't have to compromise on the profits of the old generation
For now, I think it's a good thought about a cheaper phone which is unlikely to happen but it doesn't depend on my description but a person more capable of analyzing all this better than me and for a company ..
Addition:
The iPad mini which was supposed to be a low cost iPad is still at a price higher than its competitors .. They have significantly reduced the starting price but its still a high-end ..
No quality compromisation is seen..
If they can achieve the sand thing with the iPhone then there is a ray of light that without compromising on quality they produced an elegant iPhone..
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