2011 - The $49 iPhone

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    Posted: 05 November 2010 04:09 PM #16

    Interestingly, I had the same thoughts about the same time, but from a different point of view.

    Once the iPhone 5 comes out, Apple can move the 3Gs to $29/$49, giving them a good-better-best approach.

    They could use the 3Gs to compete against the non-smartphone market, especially if they can get AT&T or others to drop the data *requirement*, and make it optional.  Or monthly, like the iPad.  The iPhone still only has 4% of the overall phone market.  Why not grow it, if they can?

         
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    Posted: 05 November 2010 04:38 PM #17

    Android phones, with their 1GHz processors and 800x480-ish screens, not to mention 5+MP camera and kinda-maybe-HD-depending-on-model video recording and sometimes-front-facing camera, represent the new smartphone status quo.  This will soon form the base for the race to the bottom for Android/WinMo7 smartphones.  The 3GS is a good phone but it’s getting outdated fast.  The iPhone 4 will be the new face of “affordable” Apple phones, for one year that is.

    I think Apple is eager to convert 100% of its production to iPhone 4 and better-class phones.  They can continue to focus on developing the iPhone line by quickly phasing out production of the older stuff.

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    The Summer of AAPL is here.  Enjoy it (responsibly) while it lasts.
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  • Posted: 05 November 2010 05:41 PM #18

    Thinking out loud…

    The 3G had a different form factor from the original iPhone. Surprisingly, the 3GS kept the same form factor as the 3G while making significant improvements to phone’s “innards”. The iPhone 4 had a whole new radical redesign - which came back to bite Apple hard with the whole Attenagate affair. Despite the fact that Apple recovered as well as one could have from the antenna scare, the bitter taste of the bad publicity Apple received must still linger. Now, most everyone believes that a new Verizon iPhone will come out in the new year with the same external design but modified internally to carry a CDMA chip. And I’ve heard no rumors concerning the design of the anticipated iPhone 5.

    Obviously Apple is struggling to create iPhone 4’s and this is a serious problem since it is inhibiting sales. Keeping the same exterior while modifying only the interior of the phone might help Apple produce more phones and produce them at lower costs. On the other hand, keeping the exact same external antenna design is just asking for a re-kindling of the antennagate debate when the iPhone 5 debuts.

    Question: Will the iPhone 5 have the same external design as the iPhone 4?

         
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    Posted: 05 November 2010 05:43 PM #19

    My early bet is on yes and no.  It’ll look similar and have the same general design, but materials might be improved, and Apple will do everything in its power to mitigate the antenna deal (I hope).

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    The Summer of AAPL is here.  Enjoy it (responsibly) while it lasts.
    AFB Night Owl Team™
    Thanks, Steve.