Budget iPhone Could Generate $6.5 Billion For Apple

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The difference between a $200 iPhone and a $700 iPhone is pretty small when one considers that a three-year service plan for either will run several thousands of dollars. Relative to the cost of ongoing service, spending $700 on a cellular phone is akin to spending $60 on a cordless/corded telephone.

If you want to get my attention, offer a nice phone with cheap service.
 
Lower quality screen? Downgraded processor? You mean a rehash of iPhone 4?
Now they can sell old unused slow chips. Brilliant. They should call it iPhony.
 
I'm afraid thing like this will dilute iPhone's exclusivity. Steve Jobs must be rolling in his grave the day that budget iPhone launched.
 
[citation][nom]sixdegree[/nom]I'm afraid thing like this will dilute iPhone's exclusivity. Steve Jobs must be rolling in his grave the day that budget iPhone launched.[/citation]

100% agree with sixdegree. Any Budget phone may benefit Apple in short term, but in long term its a sure disaster. It will loose its Premium Brand Positioning. People buy iPhone in India not because its a good product, but because its a status symbol. If my driver is going to carry the same phone as I am carrying then I loose interest in that Brand. And its a fact that we cannot deny...We live in a Branded World and are completely integrated into it.
 
[citation][nom]sixdegree[/nom]I'm afraid thing like this will dilute iPhone's exclusivity. Steve Jobs must be rolling in his grave the day that budget iPhone launched.[/citation]

Like the iPad mini >?
 
If they release a budget phone, iPhone will have to face heavier competition on the high-end front. In my country, an iPhone 5 64gb runs for 1700USD (5,2 x minimum wage). People who buy iPhones here do so because it is a symbol of social status. They probably wouldn't buy it if everyone could have one.
 
[citation][nom]Achoo22[/nom]The difference between a $200 iPhone and a $700 iPhone is pretty small when one considers that a three-year service plan for either will run several thousands of dollars. Relative to the cost of ongoing service, spending $700 on a cellular phone is akin to spending $60 on a cordless/corded telephone.If you want to get my attention, offer a nice phone with cheap service.[/citation]

ummm... it's not even targeted for people who want a 2-3 year contract. They're targeted towards people who want to buy the phone outright, you know the 2.5 billion people in China and India.
Lets not forget the 1 billion or so in Brazil, Russia, Indonesia, Malaysia, Pakistan and Middle East.
 
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