Friday, June 5, 2009

$99 Budget iPhone In July?

If reports are correct, than the next iPhone killer won't be coming from RIM, Nokia, or even from the new Palm Pre, but rather the next iPhone killer will be coming from the iPhone itself!

According to AppleInsider:

"Citing only "people familiar with the initiative," the Financial Times claims that Apple plans to release an iPhone model with a substantially lower retail price in order to boost sales, and that the introduction could happen as soon as the opening day of WWDC."

Now the idea of a low-cost iPhone model makes a lot of sense, and especially since we all just happen to be in the midst of one of the worst recessions in history. The idea of people being able to get their hands on the most talked about, most lusted after phone in history, and at bargain prices, is a very big deal indeed. True, it wouldn't have all the bells-and-whistles of the regular and more expensive and traditional iPhone, but that's were the real genius comes in and it's called - upgrades!

Seriously, Apple's not dumb, and they know perfectly well that if people can get their hands on a low cost budget iPhone and one that gives them, over all, a terrific experience, then all of those same happy customers are going to be more than happy to consider upgrading to a richer featured and more expensive iPhone in the future, after the economy begins to improve.

As far as pricing is concerned, it's also reported that Kathryn Huberty, an analyst at Morgan Stanely, stated that:

"it's either a $50 or a $100 cut" based on a survey of consumers that indicated a $50 drop "could increase demand by 50 per cent and a $100 cut by 100 per cent."

Wow, that is a hugh increase and it would go a long way in increasing the iPhone's market share, which curently stands around 10.7 %. If that is indeed the case, then Apple could suddenly see it's share of the smart phone increase to 15 to 20 % or even more!

Of course, one of the biggest disadvantages of a low priced iPhone would be would be it's memory - only 4 gigs! That's a bummer if you ever were to get addicted to the App Store and it's 40,000 or so applications. That's the beauty of a low-cost iPhone, because, once again, Apple knows that once a person is hooked on those apps, then their eventually going to want to upgrade in order to access more and more of these delicious apps and, and as well, the other features of a more expensive and capable iPhone!

Then again, there are always those people who don't necessarily need or want all of the features of the more traditional iPhone. For many, 4 gigs is not only fine, but, in some cases, it's actually more than they will ever need. By offering a lower priced and less capable phone, Apple still gets to please and snag a much larger piece of over all phone market then they would have done otherwise. A budget iPhone is not only good for those people not needing the more traditional iPhone, but it's also good for the iPhone's over all market share and not to mention, Apple's bottom line.

By offering different iPhone models, at different price points, then suddenly Apple will have not only have happier customers, but a lot more of them. This will be even more so the sooner Apple ends it's exclusivity with AT&T and allows other carriers besides it to sell and promote the iPhone.

An inexpensive iPhone is not a big deal for me, but for many, many others, it's not only a big deal, it's the only deal that they will bite into.

And that's my 2 cents 4 this Friday, June 05, 2009

iPhone pic via: Apple

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