Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

iPhone 6 rumor rollup for the week ending August 23

John Cox | Aug. 26, 2013
Putting price(s) on the cheap Apple iPhone, the Golden Age dawns

Another analyst, Citi Research's Glen Yeung, offered his own pricing speculation, according to Brooke Crother's CNET post summarizing Yeung's conclusions. "Based on this assumption [that the iPhone 5C costs about $50 less to build], we estimate that the wholesale selling price of iPhone 5C will be ~$390 and the retail selling price will be ~$450."

So there you have it. The iPhone 5C will be $300, $360, $400, $450, or $500. Somewhere in there for sure.

In a post at TechPinions, Ben Bajarin argues that an "entry level iPhone," is or ought to be a "strategic move to acquire customers who seek value but not at premium price points and [to] get them into Apple's ecosystem."

In other words, Apple wants to attract those customers who are willing to spend money on apps, music, and other services that it offers to iOS users. The "key point for Apple and an entry-level priced iPhone is how low does it need to be to still acquire a customer who will spend money and add value to the ecosystem," Bajarin says.

Evidence for Bajarin's argument comes from an assessment by Morgan Stanley's Katy Huberty, as reported by Apple 2.0 blogger Philip Elmer-DeWitt, at Fortune

In a note to investors, Huberty outlined the results of proprietary survey of 2,000 Chinese mobile phone owners. Perhaps the most intriguing result is this: "Chinese consumers consider US$486 to be an acceptable price range for the lower-priced iPhone"; that's 22% higher than Huberty's own estimate of Apple's final price for the 5C. And needless to say far higher than what most advocates of a "cheap" iPhone had in mind. By comparison, "the acceptable [to these buyers] price ranges for Samsung [Galaxy] S4 Mini and HTC One Mini were lower than the expected price."

Those results seem to suggest that a significant number of potential Chinese buyers are willing to pay significantly more for a lower-end iPhone than for comparable Android phones, because of the iPhone's higher perceived value.

iPhone 5S will be available in a "gold" color
There will be gold.

Of course it's not actually gold, as in the 24-carat kind. It's a gold color. Or goldish, anyway. There is some confusion on that score. Would Apple really create a gleaming yellow slab that looks like something worn on "Real Housewives of Orange County?"

The Consensus iOSphere Hivemind currently is that "champagne" gold is much more...Appleish.

"Yes, there will be a gold iPhone," announced MG Siegler at TechCrunch

"At first, I couldn't believe Apple would break from the tradition of offering the simple choice: black and white (or "slate" and "silver" if you prefer for the iPhone 5) for their flagship device," he confides. "Gold simply seemed too gaudy, perhaps even tacky. But a few compelling arguments countered my disbelief. And now, upon checking, sure enough, there will be gold."


Previous Page  1  2  3  4  Next Page 

Sign up for Computerworld eNewsletters.