A cheaper iPhone, sounds like a dream come true right? I don?t think so. I?m not sure Apple would make a cheaper iPhone. The question is whether or not China is worth it. As far as in the United States (I can?t speak for other countries as I don?t live there), the older iPhone?s become cheaper as new iPhone?s come out. Right now you can upgrade to an iPhone 4S (16GB) for $100 and to an iPhone 4 (8GB) for free. While you will lose some features and specs in the older iPhone?s, they are still solid devices and can hold their own against the current competition. So why would Apple make a cheaper iPhone? China. China won?t sell the current iPhone?s because they are too expensive, and will only sell them if Apple makes a cheaper iPhone.
Now, to be fair, we?ve seen Apple do a couple things recently that Steve Jobs said would never happen. The iPhone 5 with its 4 inch display and the iPad Mini with its 8 inch display. So will Apple do things that Jobs never wanted to do? Of course, if there?s money in it. But would they make a cheaper iPhone even if there is money in it? Maybe, maybe not. Apple holds to a standard of quality products. Would a cheaper iPhone still do the things a ?premium? iPhone can? Surely it would, but what would be the cost? Specs and hardware. That?s how you make a cheaper iPhone. Okay, so buy cheaper hardware you say? That takes us back to the plastic body and really reduced specs. And selling a product as new with such reduced specs and plastic body can hardly be marketed as a quality product. Fact, plastic is and feels cheap.
So let?s say Apple does go ahead and makes the new plastic body reduced spec cheaper iPhone, who?s going to buy it? Who is going to pay $200-300 off contract, probably $0-100 on contract, for a new iPhone that is solidly beat by the iPhone 4 and iPhone 4S for the same price? Obviously some people will because it?s new, some people view new as better rather than performance. However, this would allow Apple to sell an iPhone in China, which has a population roughly four times that of the United States. Even with a cheaper iPhone that is a good chunk of change.
But you?ve also got to look at business mentality. Business mentality is a synonym for Spinal Tap mentality. You can make a bigger profit selling more of a cheaper product, but at the cost of the price tag becoming smaller. Business don?t like price tags becoming smaller. They want to see sales of as high a price as possible. In Apple?s case, that?s $650 an iPhone rather than $200 per iPhone. Again, the main question is, is China worth it? Will Apple sacrifice the premium feel, premium specs, and the price tag for the China market? I?d like to say no, but seeing what Apple has done, and knowing how greedy the world is, I wouldn?t be surprised to see Apple make a cheaper iPhone to sell in China, exclusively.
Now, to be fair, we?ve seen Apple do a couple things recently that Steve Jobs said would never happen. The iPhone 5 with its 4 inch display and the iPad Mini with its 8 inch display. So will Apple do things that Jobs never wanted to do? Of course, if there?s money in it. But would they make a cheaper iPhone even if there is money in it? Maybe, maybe not. Apple holds to a standard of quality products. Would a cheaper iPhone still do the things a ?premium? iPhone can? Surely it would, but what would be the cost? Specs and hardware. That?s how you make a cheaper iPhone. Okay, so buy cheaper hardware you say? That takes us back to the plastic body and really reduced specs. And selling a product as new with such reduced specs and plastic body can hardly be marketed as a quality product. Fact, plastic is and feels cheap.
So let?s say Apple does go ahead and makes the new plastic body reduced spec cheaper iPhone, who?s going to buy it? Who is going to pay $200-300 off contract, probably $0-100 on contract, for a new iPhone that is solidly beat by the iPhone 4 and iPhone 4S for the same price? Obviously some people will because it?s new, some people view new as better rather than performance. However, this would allow Apple to sell an iPhone in China, which has a population roughly four times that of the United States. Even with a cheaper iPhone that is a good chunk of change.
But you?ve also got to look at business mentality. Business mentality is a synonym for Spinal Tap mentality. You can make a bigger profit selling more of a cheaper product, but at the cost of the price tag becoming smaller. Business don?t like price tags becoming smaller. They want to see sales of as high a price as possible. In Apple?s case, that?s $650 an iPhone rather than $200 per iPhone. Again, the main question is, is China worth it? Will Apple sacrifice the premium feel, premium specs, and the price tag for the China market? I?d like to say no, but seeing what Apple has done, and knowing how greedy the world is, I wouldn?t be surprised to see Apple make a cheaper iPhone to sell in China, exclusively.
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