1. xintelinsanex's Avatar
    Actually, the prices for new product introductions happen at remarkably consistent price points. What you're confusing is that once launched, prices for that generation product decrement over time. If you think about the range of pricing, Apple has mastered engineering products to thresholds that exist:

    $99 - shuffle (cheaper now)
    $199/249 - nano/mini
    $299 - ipod
    $399 - ipod / iphone
    $499 - iphone
    $599 - iphone

    Moving up to the $700 range with a mobile device would be pushing it.
    Good point on that pricing list you made. But what about that touchscreen tablet rumor that has been going around? If that were true, it could fill the 699 and 799 gap, depending on features and memory capacities.
    06-02-2008 03:28 PM
  2. IrishJK09's Avatar
    Well, hopefully all of our questions will be answered in 6.5 days... I am crossing my fingers for a $400 16gb price point though, because I actually have that much set aside. I can do $500 and just tell my wife to eat Raman Noodles (KIDDING), but $6-700 is pushing it too far right now.

    June 9th, 2008 is starting rival childhood Christmas on my anticipation scale... lol.
    06-02-2008 03:35 PM
  3. xintelinsanex's Avatar
    I can't justify another $400 upgrade for my iPhone. If it is $400, I would like to see some type of subsidy or something. If it came in at $299, I would absolutely upgrade. And yes, 7 more days.
    06-02-2008 06:15 PM
  4. cmaier's Avatar
    Actually the rumored chip to be in the 3G iPhone, the PMB8878, can support up to 5 megapixels.
    But you still need a 5 megapixel sensor, and I doubt it'll have one.

    I also doubt they'll use the PMB8878. I'm guessing a broadcom chip, despite the rumors.
    06-02-2008 06:19 PM
  5. Reaktor5's Avatar
    But you still need a 5 megapixel sensor, and I doubt it'll have one.

    I also doubt they'll use the PMB8878. I'm guessing a broadcom chip, despite the rumors.
    We won't know until some poor iPhone is broken open!
    06-02-2008 06:29 PM
  6. neolite's Avatar
    I really wouldn't be trusting anything that was found in a reverse engineered firmware dump. It could just be useless testing code for some prototype, and I wouldn't even put it past Apple to put something like that in there just to throw people off.

    Their acquisition of PA semi also complicated things quite a bit, in terms of knowing what the capabilities/chipset/price point will be.
    06-02-2008 06:39 PM
  7. cmaier's Avatar
    Their acquisition of PA semi also complicated things quite a bit, in terms of knowing what the capabilities/chipset/price point will be.
    No it doesn't. At least not for this revision. PA semi designed a low power/high performance powerpc chip, not anything that could end up in this revision of iphone.

    Maybe next time.
    06-02-2008 06:53 PM
  8. IndyJonez's Avatar
    More rumors, this time were hearing "thinner"!

    http://www.macrumors.com/2008/06/02/...mors-and-more/
    06-02-2008 08:04 PM
  9. xintelinsanex's Avatar
    More rumors, this time were hearing "thinner"!

    http://www.macrumors.com/2008/06/02/...mors-and-more/
    Yup, just read a similar article... 22% thinner, thats incredible. Kind of puts it in line with the iPod Touch doesn't it? The iPhone is 11.6 mm the iPod Touch is 8 mm, 22% less on 11.6 mm is roughly 9.05 mm... so still thicker, but pretty close.
    06-02-2008 09:22 PM
  10. inertialnav's Avatar
    You know what Apple is going to do? They're going to aim at the 10 million unit mark by doing a low end phone, without the bells and whistles. Other phones with all of the options will be more expensive.
    06-02-2008 09:45 PM
  11. IndyJonez's Avatar
    You know what Apple is going to do? They're going to aim at the 10 million unit mark by doing a low end phone, without the bells and whistles. Other phones with all of the options will be more expensive.
    I thought about this the other day also, the supposed $200 phone will be the version that up's the sells to hit 10 million while they will still sell a premium version, I agree.
    06-02-2008 10:58 PM
  12. cmaier's Avatar
    I thought about this the other day also, the supposed $200 phone will be the version that up's the sells to hit 10 million while they will still sell a premium version, I agree.
    Won't happen. Nothing in Apple's history suggests they will seek volume over margin.
    06-02-2008 11:49 PM
  13. Nick9283's Avatar
    i feel the iphone will definitly be in the 300 dollar range and like cmair said apples more twords the profit instead of mass sales. they are high ticket items and they know it
    06-03-2008 12:12 AM
  14. marcol's Avatar
    Nothing in Apple's history suggests they will seek volume over margin.
    While that's probably true at least to a degree (even the Shuffle apparently has good margins) the iPhone is different to other hardware products because the cash the user pays up front isn't the only income. I'm sure there's some room for manoeuvre and a lowish up front cost is far from impossible - unless they rip up the revenue sharing agreements altogether of course!
    06-03-2008 12:28 AM
  15. xintelinsanex's Avatar
    Won't happen. Nothing in Apple's history suggests they will seek volume over margin.
    Ha! Yeah right, everything they sell is really marked up from manufacturering costs. All they care about is shiny skinny things and margins. With the exception of the Apple TV (the cheap model), that they just want people to adopt it.
    06-03-2008 09:51 AM
  16. cmaier's Avatar
    While that's probably true at least to a degree (even the Shuffle apparently has good margins) the iPhone is different to other hardware products because the cash the user pays up front isn't the only income. I'm sure there's some room for manoeuvre and a lowish up front cost is far from impossible - unless they rip up the revenue sharing agreements altogether of course!
    internationally they are moving away from revenue sharing.

    There may be multiple iphone models, but none of them will be a "low end" model, at least not like what people are assuming. (They may continue the 2G version as the base model).
    06-03-2008 09:55 AM
  17. nsquared's Avatar
    Considering that when upgrading phones these days most people tend to be now drawn to smartphones with keyboards or touch-screen phones, Apple needs to really play this release carefully. Yes they are a leader, but when you consider the people that already have iPhones, Apple's not going to get them to upgrade unless they can really make it worth it to do so. A $500 starting point does not seem right. I'm guessing a starting price of $400, or if they really want to shock people, $350. It would also be great if they diversified with high-, middle- and low-end phones lines. Pick your features and pick your price-point.
    06-03-2008 10:16 AM
  18. cmaier's Avatar
    Considering that when upgrading phones these days most people tend to be now drawn to smartphones with keyboards or touch-screen phones, Apple needs to really play this release carefully. Yes they are a leader, but when you consider the people that already have iPhones, Apple's not going to get them to upgrade unless they can really make it worth it to do so. A $500 starting point does not seem right. I'm guessing a starting price of $400, or if they really want to shock people, $350. It would also be great if they diversified with high-, middle- and low-end phones lines. Pick your features and pick your price-point.
    i'm sure that apple is much more concerned with new customers than with upgraders at this point. The number of people with iphones is comparatively tiny (not yet 10 million).
    06-03-2008 10:25 AM
  19. 2Pumped's Avatar
    With prices of the Touch being $100 less than the iPhone with same memory. I would hope that if there is a 32GB iPhone, it will only $600, NOT $700 as has been posted on other sites.
    Regarding subsidizing...I only think it's fair, if ATT requires a 2 year contract, they should give a little $$$. We'll see.
    I'm also hoping for a little insurance!
    06-03-2008 10:28 AM
  20. carsly's Avatar
    Won't happen. Nothing in Apple's history suggests they will seek volume over margin.
    Although:

    low end ipod = shuffle
    low end iphone = ??

    There is no reason they would not introduce a low-end phone. Methinks something with edge, carrier subsidy, less storage and (perhaps) less functionality - maybe low-grade or no camera. Not unlike the BB Pearl, a more consumer friendly mass-market phone at a lower price point. It would be the iphone shuffle. Didn't the rolling stones have that song, "yeah, yeah, yeah..do the iphone shuffle"
    Last edited by carsly; 06-03-2008 at 10:55 AM. Reason: wanted to add bb pearl reference
    06-03-2008 10:54 AM
  21. cmaier's Avatar
    Although:

    low end ipod = shuffle
    low end iphone = ??

    There is no reason they would not introduce a low-end phone. Methinks something with edge, carrier subsidy, less storage and (perhaps) less functionality - maybe low-grade or no camera. Not unlike the BB Pearl, a more consumer friendly mass-market phone at a lower price point. It would be the iphone shuffle. Didn't the rolling stones have that song, "yeah, yeah, yeah..do the iphone shuffle"
    They make huge margins on the "low end" shuffle. They couldn't sell a "low end" iphone without raising the prices on the high end beyond what anyone is willing to pay. And they certainly won't bother with the low end until the high end market is fully saturated. Anyone who is expecting some sort of iphone nano has no understanding of apple's market strategy for the last 20 years.
    06-03-2008 12:06 PM
  22. inertialnav's Avatar
    And give it a few months, possibly holiday season, and that price will be cut 1/3 you can count on it!
    If they're going for the 10 million customers, he's gonna have to watch the price, unless the info about a low end iPhone turns out to be correct. Remember, after the initial surge of phones last year things slowed down enough to prompt a price reduction and all of the hoopla that went with it.
    06-03-2008 04:37 PM
  23. xintelinsanex's Avatar
    If they're going for the 10 million customers, he's gonna have to watch the price, unless the info about a low end iPhone turns out to be correct. Remember, after the initial surge of phones last year things slowed down enough to prompt a price reduction and all of the hoopla that went with it.
    I think the hoopla never died. A lot of people were purposefully waiting for the second iteration to purchase the phone. I don't know the exact sales number right now for the first version, but I bet the second version will sell just as well if not better. Remember Jobs signed up tons of carriers to support this. So extra opportunities will no doubt translate to more sales.
    06-03-2008 05:33 PM
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