Apple could be developing a budget iPhone in order to ward off competition from Google Android handsets.
A prototype version of a smaller, cheaper Apple handset than the iPhone 4 is said to exist, although this is no guarantee such an iPhone will ever make it to market.
The mysterious little iPhone is apparently a third smaller than the iPhone 4, with no home button on the front of the handset, which certainly sits well with rumours that Apple is aiming to do away with the button on all iOS devices.
iPhone nano
The person who claims to have seen the prototype device says that Apple has considered selling it at around $200 (about £130); you can currently get an iPhone 4 for around that price, but you'll be locked in to an expensive two-year contract for your trouble.
Another price cutting measure is to take advantage of drops in component pricing. The new budget iPhone could use parts currently used in the iPhone 4 – processor, display etc. – leaving new, pricier elements to the as-yet unannounced 'big' iPhone 5.
Apple for the people
The reasoning behind Apple's potential downmarket move is to widen the handset's appeal and combat the effects of Android, which currently offers a huge range of price points.
A lower-cost iPhone could also see Apple get a foothold in the huge Chinese and Indian markets where price is a real factor.
Although very few people in the company know of the project, Bloomberg's source says that Apple was aiming to reveal the budget iPhone in the summer.
Could this mean two new iPhones this year? Be still our beating hearts.
Via Bloomberg
Your comments (11) Click to add a new comment
resis
March 9th 2011
11. @windy - I'm not joking - MacMini starts at about £500, a MacPro about £1000 (just a very quick google check). Everything is relative, but I think the metaphor works quite well, thank you.....
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windymiller
February 14th 2011
10. "Granted they are premium company, and part of the offering is the selling of a lifestyle device."
Patronising fanboy rhetoric.
"for every MacPro there's a MacMini."
Your joking,right?The mini might be cheaper than the pro,but it still ain't cheap.
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resis
February 12th 2011
9. A budget of £350-450 is not really 'budget' though is it? That's mid-high Android territory! There'd still be room for a smaller, cut down iPhone for <£200. They'd clean up with it I'm sure. They'll do it for greater profits and market share - it's getting pretty stagnant at the top - most of the innovation is towards the cheaper end at the moment, the same as with any maturing technology. Only time will tell, I don't mind being right or wrong about it!
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handirev
February 11th 2011
8. One needs to remember there is also the iPhone 4 once the iPhone 5 arrives. I would venture a guess that the iPhone 4 will hang around for one more cycle like the 3G model did when iPhone 4 arrived. Like last time with the 3G, the iPhone 4 will be the "new" cheaper phone lacking the bells and whistles of the iPhone 5 but still able to compete with many (most?) of the lower cost Android phones when it comes to features. The important thing with iPhone is not only the phone but iOS. iPhone 4 will probably be able to run newer versions of iOS for a least the next year, unlike the problem some are facing with the various versions of Android OS that exist and their inability to upgrade the Android OS on thier phones.
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resis
February 11th 2011
7. Cheap? For every iPod Touch there's a Shuffle, for every MacPro there's a MacMini. An iPhone Mini just fits fine with this. I'm quite sure it'd be less than 99% of a full phat iPhone though......
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tom65536
February 11th 2011
6. Do you seriously believe that Apple will bring out something cheap? Who would buy their more expensive phone if they could get something 99% as good for a fraction of the cost. Apple just don't do cheap, their Mac Mini's are massively expensive once you factor into account the crappy out of date technology they have.
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slaguru
February 11th 2011
5. @a.n.other
Apple will not hesitate to sell a cheaper iPhone if they feel it will increase the bottom line (sales of Apps).
Granted they are premium company, and part of the offering is the selling of a lifestyle device, but a £200 phone is still an expensive phone. Just as the iPod went before, Apple chopped into the cheaper market with the nano and the shuffle, who is to say that this cannot happen with the phone.
They have recouped all the R&D costs, they have their own manufacturing facilities for some items, and the rest of the component world listen when they speak (so get big discounts).
Now is the time for a cheaper iPhone.
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tdm
February 11th 2011
4. I agree with resis - however I would add the note that this could eat into 'standard' iPhone sales, which *may* put apple off to an extent. Of course there will be people who want 'the best one' but the majority of people just want a swanky iDevice and would ship to the cheaper version.
The question is would the added bulk at the low end outway the reduction of customers at the high end. Either way I'll stick with Android.
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resis
February 11th 2011
3. I disagree - Apple are currently missing out on a huge market for cheap smartphones, and to launch an iPhone Mini might just be a work of genius. Exclusivity? Don't make me laugh - iPhones are more ubiquitous than exclusive, at least to those with a decent amount of disposable income. An iPhone Mini would retain the gloss of it's bigger sibling, and could mop up the cheaper end of the market. Budget Android phones beware..... not saying this is a good thing (I own an Android phone) but I can see the logic.....
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not_the_messiah
February 11th 2011
2. +1
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zee4
February 11th 2011
1. Not a chance...
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