How Much Are You Willing To Pay For The Low-Cost iPhone?

How Much Are You Willing To Pay For The Low-Cost iPhone?

We’ve been hearing and reading a lot of rumors and speculations about Apple’s low-cost iPhone for the last couple of months and though the murmurings have ebbed a bit this week, we’re still wondering just how “low-cost” this rumored iPhone could be.

For the most part, the rumored low-cost iPhone is intended for the emerging markets in countries like China and Brazil whose mobile users usually buy handheld units without any contract from cellular providers.  This has been android’s greatest strength as manufacturers like Samsung and Acer churn out mobile phones to cover the whole price spectrum – from  the lowest priced to the flagship units – giving the buying public a free hand on what unit they would buy according to their own standard, be it price or features.

The latest report about the so called budget iPhone deals with the unit’s price itself as Gokul Hariharan and Mark Moskowitz from J.P. Morgan proposed a mid-priced iPhone instead of a low-cost iPhone.

From allthingsd:

Currently Samsung dominates this segment ($200-500 price range) with 35+ percent market share. … We believe Apple could take 20-25 percent of this market in the next 12 months (from almost no market share currently), if it prices a lower-priced product at $350-400 levels.

According to Hariharan and Moskowitz, Apple has done this before – creating and introducing a product with its own price range rather than play catch up with other manufacturers in the market.

The best example of this is the iPad Mini.

When Apple introduced the iPad Mini at $329 (base configuration) a pop, a hundred dollars more than the Google Nexus 7 ($249) and even more against Amazon’s Kindle Fire ($199), I thought the price was too much considering the iPad’s smaller sibling lacked the much-sought retina display. But here’s where Apple’s genius truly shone as the iPad Mini created a price range all its own and has become Apple’s most popular iDevice right now.

Hariharan and Moskowitz (via Appleinsider):

Apple usually creates new demand when it steps into a price band — for example, the $300-$400 price range for tablets did not have much demand (most of the growth had been at the $499+ or $199 range) before the launch of the iPad mini. However, after the launch of Pad mini, this segment has become one of the largest parts of the market, even convincing many users to upgrade from cheaper tablets to the iPad mini.

What does this all mean for us? For starters, this could mean we won’t have to compromise quality/features for price as we all know Apple will not introduce a product with less than stellar specs or performance.  This could also mean a few extra bucks may be added to the iPhone’s price but at that price range, I won’t mind as long as its contract free and I can choice of carrier/service provider I want to use.

But the real question remains:

How Much Are You Willing To Pay For The Low-Cost iPhone?

Keeping you posted on anything and everything Apple.

Making it personal, always…


Written by