Apple prepping multiple low-cost iPhone models, source says

“When something is happening in the cellphone business, we here at ETrade Supply are often the first to know. You may remember 11 months ago, we showed you the first real images of the iPhone 5, or 3 months ago the first parts from the Blackberry Z10,” ETrade Supply Blog reports. “Well we just heard ‘on the wind’ confirmation that Apple will in fact be releasing lower end models.”

“Should the pricing — or the low-cost iPhone itself — turn out to be true, it would actually be positioned as more of a mid-range device, slightly more expensive than low-end phones but with functionality largely comparable to premium smartphones thanks to Apple’s own in-house chip engineering and control of both hardware and software integration” Electronista reports. “Such a combination might drive more mid-price device sales in a market that is currently split mostly between low-end feature and barely-smart prepaid phones and high-end, premium devices on subsidized contracts.”

Read more in the full article here.

MacDailyNews Take: The ETrade Supply Blog “report” reads like it was written by Samsung. Some examples of the ridiculousness, include:

• After disappointing sales figures from the iPhone 5, and not much being expected form the iPhone 5S, Apple needs a new strategy…
• Since Steve Jobs died, there doesn’t seem to be much life at Apple. Rumous [sic] of iTV have been around for a while… but today, most people know how to hook-up their TV to a computer and download tones [sic] of content; this combined with Hulu will keep most people satisfied.
• The iPhone was a Game Changer and stayed at the top until recently, but only because it was a first-to-market product and had a great brand. The sharks at Samsung knew this and did not sit by idly while Apple had a brain freeze. Instead they started offering cheaper and better products…
• Apple needs to make money somewhere and keep the brand alive while they wait for a new idea.
• We all know what happens if you are off in the woods picking blackberries instead of doing something innovative or profitable.

So, take this rumor with a dump truck of salt.

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comScore: Apple outgrew both Samsung and Google’s Android in U.S. smartphone market share – May 3, 2013
Yankee Group: iPhone ownership in the U.S. will top Android by 2015 – April 26, 2013
Yankee Group: Apple continues to eat Samsung’s lunch; customer loyalty will drive iPhone ownership past Android’s peak – April 26, 2013
Yankee Group: Apple to gain additional U.S. smartphone share over Samsung in 2013 – March 20, 2013
Apple’s iPhone user gains again out-pace Android in the U.S. – April 5, 2013
Why Apple’s new iPhone can’t lose; as with all iPhones, next-gen likely to become best-selling smartphone of all time – April 4, 2013
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  1. Wish they would give the cheap iPhone rumor a rest! The cheap iPhone already exists as a iPhone 4 followed by a 4S. It’s really simple and has been this way since the 2nd version of the iPhone came out.

      1. It makes sense to me to take advantage of the existing product, with an existing supply chain, existing manufacturing line, existing product that’s been approved etc. With that you order millions more of a product you’re already making, and can use economies of scale and continued component cost improvements to squeeze as much profit out of a device as possible without spending anything on research and development.

        The alternative of spending money on developing a new product which is functional while at the same time being appreciably cheaper than the iPhone 4, I just don’t see how that’s realistic. Where are the cost savings going to come from ? You are relegated to using substandard parts that will lead to quality issues or won’t be capable of running a recent OS, leading to the need for more developmental resources.

        The only specific thing I’ve seen is to use a plastic case instead of aluminum, but how much does that really save? Maybe a few dollars a device? Apple needs to shave hundreds of dollars off a device cost to be able to sell it for appreciably less. Where does that come from ?

        No one has answered that question. Your response doesn’t shine any light on that either. Care to elaborate?

    1. Not every market offers subsidies. Some markets require the user to purchase the phone outright. Do you think $400 is low cost? Because that is what a new unlocked iP4 cost from Apple.

  2. Speculation. Just don’t bet against the guys that built this company and will continue to do so. Why all the second guessing from amateurs? Apple has the same inherent people and creative strengths today and more than it had many years back. There is a lot more to come. This is the growth stock of the century.

  3. “We all know what happens if you are off in the woods picking blackberries instead of doing something innovative or profitable.”

    Yea, you go to court, pay celebraties to tweet on your product, claim to be for the little guy, and create plastic junk 1/3 as reliable with the same price.
    Decide to compete with your clients and then copy their products as they have first view of design and method.
    Oh, then attempt to belittle your clients products and customers with a large dose of photocopier ready for anyone’s idea for your next next product.

    Yup, Samsung sat and picked blackberries while Apple cleared the field and with the aide of paid media, attempts to rewrite themselves as the innovator as opposed the the blatant stalker they are.

  4. As an Apple shareholder, I really have to wonder what Apple is doing sometimes. I realize it’s the top company in terms of market share, revenue and profits. However… One has to think that with all that overseas cash, why isn’t Apple doing more? Why isn’t the company expanding into other fields? Why doesn’t it have research divisions like IBM does? Why isn’t Apple trying to actively involve itself with DoD projects? I can’t help but thinking Apple is only making use of a small percentage of what its actually worth. I realize Apple is a tightly structured company and not a conglomerate, but for Apple to have close to $100 billion dollars just sitting in an unused pile seems like a waste on so many levels.

    If Apple were able to corner some patents on battery technology and came out with some 20% longer-lasting batteries, it might be very difficult for a company like Samsung to easily duplicate. Apple should also be able to afford and manage exclusive contracts for say six months to a year that only it would have access to those components.

    I remember a couple of years back hearing that Apple was able to practically corner the NAND flash market to make supplies tight for every other company. What happened to that advantage? What happened to Apple’s enormous economies of scale? Was that all just idle talk? Samsung is now said to be the company having all the advantages or at least that’s what the news media is saying. It’s hard to tell fact from fiction, so I don’t know what to believe.

    I just assumed Apple had the smartphone industry pretty much locked down as far as profits are concerned, but now I’m not so sure. (Repeating, as far as news media reports are concerned). To me, $100+ billion dollars should be able to move mountains. So, is there any logical reason Apple should be falling behind, if that’s really the case?

  5. I don’t expect Apple to make low-priced junk. Steve would never do it, and I don’t think it’s necessary. If they do, every anti-Apple tech or mag (Consumer Reports) will be using the low-cost models as basis for comparison. Their DNA, and identity, will be compromised. What Apple and all of us need are reasonable rates from the carriers, including cable.

  6. I just don’t get why Apple would want to devalue their brand and risk their healthy margins just to compete for some meaningless market share crown. Hewlett-Packard already demonstrated that you can be tops in market share and nearly on your way out of business at the same time. Apple is walking away with a whopping 72% of the profits in the smartphone industry…who cares if Android collects all of the bottom feeders???

  7. Hah… Ok. There went all my respect out the window for ETrade Supply Blog if I had some before. It sounds just like the analysts. Apple must do this, apple have to do that or else this that will happen apple is doomed blah blah blah… I for gods same does not hope we see any crappy cheap iPhone… Besides. What most blogs, analysts, well street pundits fail to realise because they are too stupid probably is that Apple already got a cheap and a cheaper iPhone in the iPhone 4S and iPhone 4.

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