On 02.11.09, In iPhone News, by zoopedup
Apple will start selling a cheaper, ‘entry-level’ iPhone sometime this summer, for around $99 after subsidy, according to “checks,” RBC analyst Mark Abramsky said in a note this morning.
The main cost reductions would come from fewer features — not a crappy ‘iPhone nano’ or something without a multi-touch screen. Abramsky thinks it might have a [...]
Apple will start selling a cheaper, ‘entry-level’ iPhone sometime this summer, for around $99 after subsidy, according to “checks,” RBC analyst Mark Abramsky said in a note this morning.
- The main cost reductions would come from fewer features — not a crappy ‘iPhone nano’ or something without a multi-touch screen. Abramsky thinks it might have a lower-resolution camera, no 3G Internet access or GPS, and a cheaper data plan (~$15/month) with a usage cap. We agree that lowering the monthly bill would help drive iPhone sales, but carriers won’t be thrilled.
- Meanwhile, the iPhone 3G will get feature upgrades, such as a better camera, video capabilities. (See chart below.)
- He thinks Apple could sell 20-30 million of these cheaper iPhones in fiscal 2010, boosting Apple’s smartphone market share to almost 20%.
- Cheaper iPhone will eat into iPhone 3G and iPod sales. And a lower subsidy and lower margins means Apple will have to sell three times as many to make the same gross profit from one iPhone 3G. He expects fiscal 2010 iPhone gross margins to shrink to 35%-37% from 50%+.
One Response
Interesting article, all speculation though!
Why would apple make a cheaper phone? low end market penetration?
so Bring back the old iphone which they no longer make is what he is saying?
I can see the Size going up on storage, megapixels (economy of scales here) My guess is a front camera for video conf, mms.
I highly doubt they will increase the screen resolution, what would be the point?
The existing 3g Iphone already has HSDPA and HSUPA capabilities just not enabled.
So that would be a firmware upgrade.
Otherwise I think its all speculation. When have apple ever given any secrets away?