Apple spent years and billions of dollars creating the $3,500 Vision Pro, a device that won’t become a major moneymaker for years and one that is now suffering from waning enthusiasm. Apple needs a true entry-level iPhone to revive growth, Mark Gurman says.
Mark Gurman for Bloomberg News:
Until Apple can produce a lighter-weight model with a less intimidating price tag, the headset will remain a niche product.
But I do think there’s way to revive growth without creating an entirely new device. The company’s best course of action might be developing a cheaper version of the iPhone and making a renewed push into emerging markets.
Its first attempt at making the device more affordable was cutting the price of year-old models by $100 when new versions debuted. Apple then rolled out the iPhone 5c in 2013, but that model was mostly just the prior version wrapped in colorful plastic — at the same $100 discount.
Apple tried again in 2016 with the iPhone SE… Next year, Apple is planning to upgrade the SE, moving to an all-screen design that makes the device look more like a modern smartphone. But with a faster chip and premium materials, you can bet the price will stay well above $400.
If Apple wants to get serious about emerging markets, it should develop a an iPhone more in the range of $250. Now, that’s not something Steve Jobs would probably do, but going downscale could be what the company needs right now.
Apple could get the cost down by using an all-screen LCD approach — rather than the costlier OLED display on current iPhones — and reduce the number of cameras. The device would sport an older but still capable chip, and perhaps a plastic shell (that still retains Apple’s industrial design). And the company could limit sales of the phone to emerging economies.
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MacDailyNews Take: For over a decade now, and without a true low-end iPhone, Apple’s iPhone is the most-desired smartphone in emerging markets.
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This makes no sense. There is no profitability in ultra low end products. It will just distract the development teams, creating confusion in the market.
But, once you get ’em in the walled garden, you have an annuity that pays for a long time.
I don’t care if they have a low-end iPhone, but I want them to keep making smaller-screened iPhones. My 13 mini won’t last forever!
I miss my iPhone 3GS.
no! apple needs two phones. and they need to lower the prices on those phones. now without having to produce and support, engineer a dumb down version, they should certainly be able to lower the prices. sell more at a reduced price and make way more money.
Apple could do this, but there’s no way it would stay limited to emerging markets, there would be parallel imports immediately. The iPhones that fill this gap are older models. I picked up an iPhone XR second hand for $150 and paid $75 to replace the battery (in my country, the prices would be less in USD). The phone stutters a little compared to my iPhone 15 Pro Max, but it does the job beautifully. Refurbished iPhones are a thing and they serve this purpose well. If Apple made a lower-end phone it would have to come with a lower end chip. Apple might as well lower the price of the iPhone 12 or something and keep selling that. Let’s see what the 2024 iPhone SE brings. Maybe two iPhone SE models, one with an older chip. It all gets a bit complicated though – Apple would want SE owners to have a solid experience and get years of updates, so making one with an older processor than 1 generation old from new is a big ask. I think refurb iPhones serve this purpose well and that’s good enough.
True to an extent, but the refurb experience can be a mixed bag and most people don’t want to have to have the battery replaced and deal with potential issues that arise from that. I think a new SE without the home button priced appropriately for smaller markets is important. A friend in Eastern Europe recently told me about how iPhones were (and still are) considered high-end luxuries. They still cost more there than in the US while salaries are much lower. Samsung dominates these markets, a $300 iPhone would make a big dent.
I was under the impression that there won’t be a 2024 SE. Isn’t that what the article says—it’ll be in 2025?