Does Apple need a true low-end iPhone?
Apple’s iPhone 5c (released on September 20, 2013)
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 iPhone is the most-desired smartphone in emerging markets.
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