If Apple Builds a Low Cost iPhone, How Many Will It Sell?

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News Posted: Tue, Apr 16 2013 9:56 AM
It's been rumored on more than one occasion that Apple is going to release a lower cost iPhone model made of polycarbonate plastic in place of metal and glass. The simple reason Apple might even consider breaking its own status quo (and for the record, Apple denies that it is) is because Android holds the lion's share of the mobile market. Releasing a lower cost iPhone device doesn't guarantee a wave of Android (or potential Android) users will flock to iOS, but if done right, it makes sense that Apple could carve out a following among a different demographic. But just how many could it sell?

Piper Jaffray analyst Gene Munster believes a low-cost iPhone device could see sales in the neighborhood of 75 million units in 2014, CNET reports. Munster made his forecast in a note to investors, adding that Apple is likely to sell a $300 non-subsidized iPhone in September.

iPhone 5

The downside to doing so is that such a device could and probably would cannibalize regular iPhone sales. According to Munster, a non-subsidized iPhone would eat into about a third of regular iPhone sales, ultimately leading Apple to concede 37 percent of the high-end smartphone market.

What do you think? Should Apple launch an non-subsidized iPhone, or stick with premium models only?
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OOs replied on Tue, Apr 16 2013 10:38 AM

it's a shitty device .. not the price only the problem.

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In short..Apple is going to cut the price of the latest iPhone to production cost plus 100 dollars tagged on for their pocket..Samsung has them on the run!

Yeh..this wont happen, even if they dumbed down the iPhone somewhat..would dig into their other sales..the ones that rake in big bucks for little investment...

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Can always buy a second gen iPhone? lol

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realneil replied on Tue, Apr 16 2013 3:15 PM

OOs:

it's a shitty device .. not the price only the problem.

How could you know this before they're even sold? I have my own doubts about it too, but I'll wait for the reviews before I try to bury it in the Cat box.

 

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Clixxer replied on Tue, Apr 16 2013 4:58 PM

I was actually thinking about the other day when responding to another thread about them being made of plastic. How will this affect the bottom line and would this maybe be an experiment or is Apple really trying to make a jump into the mid level smartphones.

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realneil replied on Tue, Apr 16 2013 5:54 PM

Clixxer:

I was actually thinking about the other day when responding to another thread about them being made of plastic. How will this affect the bottom line and would this maybe be an experiment or is Apple really trying to make a jump into the mid level smartphones.

They probably look at the money that other companies are making with lower cost devices and think of it as lost revenue. Expanding into these markets could make a lot of money for them if they do it right. It represents a heck of a lot of market share.

To be successful, they'll have to overcome their "Apple-Tax" mindset first. Little things, like being able to insert flash memory storage into your device mean a lot to the people buying these days. Apple has resisted this all along and I think that it's a mistake.

 

 

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Probably sell more warranties than phones, I've seen enough of the regular iphones hit glasses of beer and table corners. :D

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A lot. Theres an entire market that Apple missing out on.

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I think these have the potential of flying off the shelves. Let's be honest, Apple products are hugely popular. And just about any Apple product can be seen as a status symbol for some people. Yeah, the reality is that these could cut into profits for the regular iPhone, but these selling like hotcakes can help in that area. It might be a gamble either way, but worth it.

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Clixxer replied on Wed, Apr 17 2013 1:57 AM

I could see these being a one hit wonder the more I think about it. iPhone might be a status symbol but so is the Galaxy S series and the note series. If the cheap iphone does well then I could see samsung stealing their thunder next year with something.

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realneil replied on Wed, Apr 17 2013 3:11 PM

Clixxer:
If the cheap iphone does well then I could see samsung stealing their thunder next year with something.

Yup, there is a lot of competition and ~none~ of these companies will cut any slack to anyone else.

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Clixxer replied on Mon, Apr 22 2013 1:08 AM

realneil:

Clixxer:
If the cheap iphone does well then I could see samsung stealing their thunder next year with something.

Yup, there is a lot of competition and ~none~ of these companies will cut any slack to anyone else.

Hehe oh i'm sure they would "cut" them something but it might be the jugular than some slack :P

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