NY Times: Apple planning a cheaper, but not smaller, iPhone

NY Times: Apple planning a cheaper, but not smaller, iPhone
We recently passed along to you the rumblings from both the Wall Street Journal and Bloomberg that Apple was planning a smaller version of the iPhone to be released in the warmer months. Normally, you can't find much more prestigious names in the world of journalism than those two, except for-perhaps-The New York Times. And today, the Times weighed in with a different story.

According to the paper, "Apple is not currently developing a smaller iPhone,"  and the Times adds that the Cupertino based firm is "not planning to introduce a smaller iPhone anytime soon." An anonymous Apple engineer tells the Times that it wouldn't make sense for the company to produce multiple form factors at the same time. The engineer said that cheaper components, not a smaller sized device, would lead to a lower priced Apple iPhone.  The Times also adds that Apple engineers are totally focused on the iPhone 5 and do not want to force developers to re-work apps to fit a smaller screen size. A smaller model would also be harder to operate. Apple CEO Steve Jobs, back in October, pointed out the fragmentation of the Android OS when he said, "We think Android is very, very fragmented and getting more fragmented by the day. We think this is a huge strength of our approach compared to Google’s." Producing a smaller Apple iPhone model at this point would make it appear that Apple is following Google by manufacturing multiple models at the same time.

The anonymous Apple employee, who has worked on a few versions of the iPhone, says that changing the internal components of the device could help bring the price down which would expand sales and broaden distribution of the phone. Apple also is considering making MobileMe a free service. Currently costing $100 a year, the application allows iPhone users to store photos, music, files and other media online where they can be instantly accessed by the handset. Apple believes that if more users store their media online using a wireless, free version of MobileMe, the amount of flash memory on the iPhone-a very expensive component-could be reduced which in turn could lower the price of the phone without making it smaller. And that could prove very profitable for Apple. Sanford C. Bernstein analyst A. M. Sacconaghi Jr. said that a lower priced version of the iPhone could increase unit sales sixfold.

source: NYTimes

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8 Comments

1. FINALLY unregistered

FIRST!

3. applesauce unregistered

Considering that iphones have the highest markup of any phone in the industry, that engineer is full of it; apple needs to get off their high horse and sell the phone at a lower profit if it wants it to be more approachable in terms of cost. Next they'll lower cost of production and move its manufacturing base out of china to somewhere even cheaper, if that's possible

4. JeffdaBeat unregistered

Why? They have the most wanted handset in the world.

5. heyitzme

Posts: 87; Member since: Jan 03, 2011

Shame on apple for wanting to make money! They should just give their products away for free. (obvious sarcasm)

6. icepikk

Posts: 32; Member since: Feb 13, 2011

If people keep buying it and wanting it in mass numbers then there really isnt much incentive to make it cheaper or any of the other things mentioned before to bring in a large buying base. Some people love apple and will buy it not matter the cost, while others hate apple and wont buy it if the phones were free. There are people who feel they shouldnt ever have to pay for a phone and should get the top of the line, best device for nothing because theyre a "loyal customer." You cant hit everyone, but apple certainly hits a lot and have a rock solid device as is. As long as they make enough upgrades per new device, they will be able to keep that price tag the way it is.

7. joey18

Posts: 647; Member since: Jul 20, 2010

i wan to see iphone. and ipo@ and other cell phones are to spenced so make cheap or make spenced but contracts not 350......175 is right price now my phone droid x 569 at the store i can salit 200 so im still stuck under contract 350 i pay 250 ....is full price for the price the contracts sho b a year not 2 years

8. icepikk

Posts: 32; Member since: Feb 13, 2011

I did not understand a single bit of what you just said sir..

9. p0rkguy

Posts: 685; Member since: Nov 23, 2010

3GS is that you?

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