Apple to Differentiate Future iPhone Models using Software?

You might remember that late last week analyst, Yair Reiner of Oppenheimer, who visited Apple's headquarters in Cupertino, CA had reported that Apple's management felt that: "iPhone is still in its early days and could gain share by: providing more functionality; lowering prices; growing geographically; or segmenting the market with different models."

At that time, we had mentioned that we have already heard several rumors, which indicate that Apple is working on these options.

But folks at Register Hardware have also learned from Reiner that "segmentation would focus on software."

Register Hardware has interpreted this comment to mean that Apple is planning to offer multiple iPhone models that would consist of essentially identical hardware, but have different software packages. According to them:

Apple could market one 'YouTube' iPhone model with applications that provide video capture, editing and sharing features. Other iPhones might only offer basic video capture - or perhaps no video at all.

Selling models differentiated by hardware seems unlikely. Different iPhones with very different physical specs could have far-reaching implications for Apple's production methods, volumes and costs.

There are two reasons why I think this is highly unlikely:

  • If Apple introduces another iPhone model alongside its flagship model then it would be a cheaper iPhone which would help Apple to widen the target audience especially in fast emerging markets of Brazil, Russia, India, and China. The only way Apple can achieve this is by stripping off some of the expensive hardware components from its flagship iPhone model (maybe even a slower and cheaper processor).
  • If Apple disables features using software then the iPhone hacking community will figure out a way to enable them by hacking the iPhone. It will end up hurting Apple in the long run as users will opt for the cheaper iPhone as they know that they can hack it to enable features that are available in the more expensive iPhone model.

According to MacRumors:

Another possibility is that market segmentation could still be offered using different hardware, but driven by differences in software, such as the rumored "iPhone nano" that could conceivably be released without a focus on the App Store found on the current iPhone. In broad terms, Apple's comments indicate that the company may be using software-based decisions to define feature sets for various iPhone hardware models.

I think that makes a lot more sense than Register Hardware's interpretation of comments from Apple's management.

As always, please let us know what do you think in the comments below.

[via MacRumors, Register Hardware]

Categories : iPhone Rumors

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4 Responses to Apple to Differentiate Future iPhone Models using Software?

  1. mokilla says:

    first this is raw if they really do this i mean giving us three options to choose from ill get the highest priced iphone either way it goes i nedd the best there is u know.

  2. hxclos says:

    I don't see Apple releasing an iPhone Nano. Some people are still using the first gen iPhone which doesn't have all the hardware the current one does but I'm sure will work with the 3.0 update. A smaller iPhone would mean Apple would have to buy more parts such as casings, screens, and even batteries costing them more; not to mention it would make lanscape mode somewhat pointless.

  3. major says:

    i agree, i always by the best and most expensive model to make sure i get the most out of it.

  4. Caco Potoso says:

    If they use software to enable or disable specific features, I guess it will take exactly 2 weeks for someone to figure out the unlock for those features… Come on, this has been tried before and someone will find a workaround.

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