1. SeanHRCC's Avatar
    Another thing...where on Apple's website does it identify itself as a luxury brand? Why shouldn't it offer products across a wide spectrum of prices? Is Apple considered luxury because its products are more expensive? How did Apple become associated with the rich and snobby? Seriously, why is Apple held up to a higher level and expected to never offer budget alternatives? I just don't get this kind of attitude.

    Sent from somewhere
    BMW doesn't identify itself as a luxury brand either, but it is.

    And who said anything about "rich and snobby", you don't have to be a luxury brand and automatically be solely associated with the rich and snobby...I'm neither rich or snobby, but can identify what a luxury brand is and the kind of consumer it would be targeted at. It has nothing to do with a certain attitude man, it has to do with a company that sells products that arnt meant to appease the needs of every consumer from the low to high end market. Apple's products are not the ones you can buy at your local gas station on the pre-paid phone wall, or at a little 3rd party cellular phone store that sells whatever local piggy back cellular provider is in your area (IE: Metro PCS).
    Just_Me_D likes this.
    07-11-2013 03:45 PM
  2. Ipheuria's Avatar
    This is a topic that I'm just not sure about it's like the iPad Mini. When the rumors were that Apple was making a 7" tablet I thought it was crazy especially after what Steve Jobs said about 7" tablets. Then the leaks started coming and the rumors just wouldn't die and boom we now have the iPad Mini. The problem I see right off the bat is that Apple will not want their brand associated with two words "Budget" and "Cheap" which is what most people conjure up when talking about this budget iPhone. However I do see the point that although Apple is making a ton of money, emerging markets where people have less money could be a lucrative oppurtunity. These countries are becoming larger markets for devices and if you ignore them then when they outpace the NA market it might be too late to get your foot in the door. So I could see the case where a less expensive iPhone was developed that was ridiculously low off contract. However I think if that happens it wont be released in NA because Apple doesn't want to be known as cheap or budget and especially not where they are making tons of money. Then there are the rumors of new Apple store incentives like trade ins and as everyone here says the last model going to $99 or free makes it NA's budget iPhone. So what would be the point of releasing it here? Who's going to buy a plastic iPhone when they can get an iPhone 5 for $99? No matter what happens there is no way in hell this budget iPhone would be the iPhone 6. The iPhone 5s would be a more premium product than a 6 come on that is confusing in all kinds of ways. IF it did happen the budget iPhone is more likely to be the iPhone 5s and the premium phone the iPhone 6. The rumors just wont die.
    Just_Me_D likes this.
    07-11-2013 04:07 PM
  3. mountainman's Avatar
    I agree with SeanHHRC for the most part - it is a luxury brand, and I just don't see Apple straying from that.

    Plus - if it truly is the lower-income they are targeting, how will they pay for the smartphone plans? That is the true expense. Doesn't make any sense to me.

    Here is my wild speculation of the day. Those are not colored cheap iPhones. Those colored phones are the new iPhone 5s. There is an entirely new iPhone coming out with a new design, bigger screen, called the iPhone Pro. It will be made of sapphire and cost an arm and a leg.
    Just_Me_D likes this.
    07-11-2013 04:20 PM
  4. Paradocks's Avatar
    BMW doesn't identify itself as a luxury brand either, but it is.

    And who said anything about "rich and snobby", you don't have to be a luxury brand and automatically be solely associated with the rich and snobby...I'm neither rich or snobby, but can identify what a luxury brand is and the kind of consumer it would be targeted at. It has nothing to do with a certain attitude man, it has to do with a company that sells products that arnt meant to appease the needs of every consumer from the low to high end market. Apple's products are not the ones you can buy at your local gas station on the pre-paid phone wall, or at a little 3rd party cellular phone store that sells whatever local piggy back cellular provider is in your area (IE: Metro PCS).
    But you can buy an iPhone at Walmart. And I don't consider Walmart to be anything remotely associated with luxury.

    Sent from somewhere
    07-11-2013 04:46 PM
  5. SeanHRCC's Avatar
    But you can buy an iPhone at Walmart. And I don't consider Walmart to be anything remotely associated with luxury.

    Sent from somewhere
    You can also buy a $5,000 60" plasma screen TV from Walmart. Walmart has a monopoly on retail, they carry everything from the absolutely crap quality junk to very expensive and high end electronics...and they do this mainly so that they draw sales away from focused electronic retailers like Best Buy. I think it's safe to say that we've all seen the higher end of Walmart...but your comment actually strengthens my side of this. You said that you don't see Walmart being even remotely associated with luxury...why? Because they also sell a lot of junk along side their expensive stuff (furniture, electronics, car parts, etc). So you have this big sea that travels the spectrum of product marketing and segment.

    Apple starts releasing these "cheap" iPhones, and you're heading down that same slippery slope. Now I doubt it would ever get THAT bad...certainly wouldn't make Apple on the level of Walmart as far as targeting every person that exists on the planet...but it's got to start somewhere right?

    To me, it diminishes the brand. I don't expect anyone to agree with me, it's just my opinion. I view Apple as a luxury brand and their products as luxury vs. necessity (like your cheaper Android devices fall closer to).
    Just_Me_D likes this.
    07-11-2013 05:08 PM
  6. zeteo's Avatar
    Strongly disagree, what you say is clearly what's going in the US and Apple certainly does not need a budget iphone here.
    In emerging countries though it's a total different story, yes Android reaches this countries with a plethora of cheap phones and this is the reason Apple wants to get some of this market with a cheaper iphone.
    Now the 4S theory, in most emerging countries the new iphone, let's say the 5S wont launch until next year and when it launches it will be out of reach for the majority of the people and it doesn't neccesarily mean the market will be flooded with cheap iphone 4s's, the 4s and even the 4 remain very expensive phones and out of reach for many people, the networks dont offer the same subsidies we get here and they are 1000 times more evil and greedy than all the networks in the US.

    In south america for example, pre paid plans are way more popular than regular post paid plans and this is in part because of the almost zero subsidies and long contracts, this is why android has a pretty good product penetration in these countries, they make so many phones that they can easily sell older devices at very good prices to everyone , Apple as it is now can't compete with that.
    A cheaper iphone at launch is what these markets need.
    I agree with you totally.
    07-11-2013 09:34 PM
  7. bunjy's Avatar
    You can also buy a $5,000 60" plasma screen TV from Walmart. Walmart has a monopoly on retail, they carry everything from the absolutely crap quality junk to very expensive and high end electronics...and they do this mainly so that they draw sales away from focused electronic retailers like Best Buy. I think it's safe to say that we've all seen the higher end of Walmart...but your comment actually strengthens my side of this. You said that you don't see Walmart being even remotely associated with luxury...why? Because they also sell a lot of junk along side their expensive stuff (furniture, electronics, car parts, etc). So you have this big sea that travels the spectrum of product marketing and segment.

    Apple starts releasing these "cheap" iPhones, and you're heading down that same slippery slope. Now I doubt it would ever get THAT bad...certainly wouldn't make Apple on the level of Walmart as far as targeting every person that exists on the planet...but it's got to start somewhere right?

    To me, it diminishes the brand. I don't expect anyone to agree with me, it's just my opinion. I view Apple as a luxury brand and their products as luxury vs. necessity (like your cheaper Android devices fall closer to).
    I don't believe that Apple will allow its brand to be diminished in this way. Nor do I believe that Apple is interested in targeting the low-end segment. What I do believe is that Apple wants to (at least in some way) make the iPhone more accessible (from a price perspective) in emerging markets, where there is huge potential for growth. As I said in a previous post, we can debate (as we've been doing) whether Apple is better served by launching a new, low-cost phone or by simply utilizing the older models. However, I'm confident that Apple can make a quality, low-cost phone that does not come across as "cheap" like many of the Android devices do. As we all know, purchasing one Apple device is the "gateway drug" that leads to purchasing more Apple devices. I was a die-hard Android guy, but after I bought my iPad, the iPhone shortly followed.
    Guacho likes this.
    07-12-2013 02:13 AM
  8. SeanHRCC's Avatar
    I don't believe that Apple will allow its brand to be diminished in this way. Nor do I believe that Apple is interested in targeting the low-end segment. What I do believe is that Apple wants to (at least in some way) make the iPhone more accessible (from a price perspective) in emerging markets, where there is huge potential for growth. As I said in a previous post, we can debate (as we've been doing) whether Apple is better served by launching a new, low-cost phone or by simply utilizing the older models. However, I'm confident that Apple can make a quality, low-cost phone that does not come across as "cheap" like many of the Android devices do. As we all know, purchasing one Apple device is the "gateway drug" that leads to purchasing more Apple devices. I was a die-hard Android guy, but after I bought my iPad, the iPhone shortly followed.
    So what's wrong with the iPhone 5 (or the next variant of iPhone) in the emerging markets? Why not just simply release them like we release iPhone's here?

    I think we understand that the problem with that is the pricing...these emerging markets that people keep referring to want the ULTRA cheap phones, the phones that we consider junk here in the U.S. Android has that market in a strong hold, they make a lot of crap...and they don't have to charge anything for it so it becomes appealing in areas where income levels are significantly lower than our own middle class in the U.S. (which, from what I understand, is where most iPhone sales come from in the states, so I think it would be a pretty safe bet the same follows into these emerging markets as well, where the middle class is the bulk of the consumer base).

    So Apple releases this cheap iPhone. Maybe its a great phone...maybe the build quality is top notch and the features are what you would expect from a lower end model, and in the end, you kind of have an "Air vs. Pro" kind of deal, the iPhone vs. the quintessential iPhone "Pro". That works, it doesn't really diminish the brand, and it becomes a kind of "go to" phone for the budget minded. Do you really think this kind of iPhone would be the device that would unlock those emerging markets you keep describing though? It seems to me that the kind of phone that Apple would probably release as their entry level model would still not be appealing to these markets vs. the kinds of phones they are so focused on now that run Android OS.

    At any rate, I guess we'll see. I can't fathom a phone that falls below a level of Apples luxury brand standards, and I can't imagine said phone would be appealing to the emerging markets because it won't be budget friendly enough...which is why I really don't see the purpose of a new device when they can just shovel off the iPhone 4S for next to nothing and appease these markets with that.
    07-12-2013 09:08 AM
  9. Paradocks's Avatar
    Well, Apple needs to do something if they don't want to totally concede the smartphone market in developing countries to Android. Whatever they are doing now isn't working in countries like India where Android enjoys a 90% adoption rate.

    We may have to just agree to disagree. I see a lot of increased market potential in the introduction of a new budget iPhone. Others think a budget iPhone will diminish Apple's perceived luxury status. Yo, Tim! Help us solve this dilemma and make a decision!

    Sent from somewhere
    Guacho likes this.
    07-12-2013 09:52 AM
  10. jclisenby's Avatar
    Those phones are sexy. This will be great for Apple. Take back some of the market from the "Cheap" phones like Androids and BlackBerrys.


    Tappin and Talkin from my iPhone 5
    07-12-2013 10:01 AM
  11. jorbjorb's Avatar
    the plastic phones look like krap!
    07-12-2013 10:48 AM
  12. Ipheuria's Avatar
    The way I think about it is when the netbook was first introduced it was seen as the savior of PCs. It was cheap, plastic and everyone could have one. The big buzz was that it was cheap, anyone can say blah, blah, blah specs, hardware, size. It was cheap there is no getting around it, I owned one why because I could just buy it without even thinking about it. How did Apple respond? they built the MacBook Air which is light, ultra portable but it's not cheap is it. So I think they are going to do the same thing here they will make something that like the MBA to the MBP is more accessible than the flagship iPhone. It will be more accessible but that doesn't mean cheap in qaulity. I don't know how they'll do it like I said these rumors just wont go away but I just think there is more of a chance they will do something that will not be seen as cheap or budget.
    07-12-2013 01:39 PM
  13. kch50428's Avatar
    Apple did make the iPod Nano... I suppose an iPhone akin to the Nano is a possibility...
    Guacho likes this.
    07-12-2013 01:48 PM
  14. zeteo's Avatar
    I would think it would be wise marketing to have a cheaper device.


    Sent from my iPhone 5
    using Tapatalk
    07-12-2013 11:43 PM
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