In a recent meeting with analysts, Apple COO Tim Cook made some interesting comments which related to Apple’s vision for the iPhone market. Specifically, Cook appeared to suggest that “Apple is likely to develop lower priced offerings” when talking about the future plans for the iPhone and that better pre-paid offerings could be put in place as Apple did not just its products to be just for the rich (Forbes via MacRumors).
While, on the face of things this seems like fantastic news for consumers on a budget, the simple solution for consumers who want a cheap iPhone in the meantime would simply be to purchase an iPhone 3GS for $49. To produce a cheaper iPhone, Apple would likely have to make one or more of the following compromises; cheaper materials/construction costs, fewer features, and slower performance. All of these items fall under the umbrella of the previous generation of iPhone. Wouldn’t it just be simple to focus on pre-paid plans for iPhones that have been around for one or two generations rather than putting resources into developing new cheaper models when the older ones work fine?
To be honest, the fact that Apple is looking into better pre-paid options is a great idea but it’s the wireless providers that need to sort their pricing out. For example, imagine purchasing an iPhone, off-contract, for whatever price. Obviously, if Apple are looking into budget iPhones, this may run around $200-$300. If you wanted to purchase a pre-paid plan from either Verizon or AT&T you are looking at around $100 per month. Is this really a fair charge for voice and data? Is there no way of reducing this?
The reality is that, until wireless providers in the US drop their prices, Apple can reduce the cost of an iPhone all they want but smartphones, even the cheap ones, are still going to be an expensive habit.
For Cheep And Cheerful