Forbes reports that Bernstein Research analyst Toni Sacconaghi apparently had a meeting with Apple COO Tim Cook, CFO Peter Oppenheimer and VP of Internet Services Eddy Cue last week.
The analyst reports that Apple’s COO suggested that it is "likely to develop lower priced offerings" to expand the iPhone market.
Forbes reports:
The analyst says Cook “appeared to reaffirm the notion that Apple is likely to develop lower priced offerings” to expand the market for the iPhone. Cook said the company is planning “clever things” to address the prepaid market, and that Apple did not want its products to be “just for the rich,” and that the company is “not ceding any market.”
We’ve heard rumors that Apple is working on a cheaper and smaller iPhone model, which could be priced at $200 without requiring a contract. However, New York Times reported that although Apple is exploring ways to reduce the price of the iPhone to make it affordable to a wider audience by changing internal components of the device, it is not working on a smaller iPhone.
The analyst also reports that Cook believes that the tablet market will be much bigger than the PC market. He wrote:
Cook indicated that the tablet market would be much bigger than the PC market. Sacconaghi concludes that if so, it could eventually be a $60 billion to $100 billion business for Apple alone. Cook also said he expected intense competition in tablets, more so than in smart phones, with all PC and smart phone vendors likely to participate, but he added that Apple has a strong head start, and that it has interesting new things in the pipeline.
What do you think? Should Apple launch a cheaper iPhone model? Please share your views in the comments section below.
[via Forbes]
This is a good strategy for apple. One thing the android phones have over apple is that they cover all demographics. From power users to the entry level smartphone, it is important to satisfy each segment. This will surely take market share away from other phone manufacturers.
@Pete. I couldn’t agree with more. Nicely put without the BS.
I don’t know. On one hand I agree with Pete. On another hand, I’m thinking, ‘bang for the buck, iphone is an amazing deal for two hundred bucks’. I’ve noticed they’ve been pushing the 8gig 3GS for fifty bucks all over the place and can’t help but wonder if they’re doing that to test the market…see how that will do, and if they increase sales of the 3GS enough, they’ll release another version of iphone. Also what about the devs? Won’t they have to come up with newer versions since screen size will differ?
Tim Cook wont take the calls, Steve Jobs will so no Nano iPhone.
Eh….>.> I doubt I’d WANT a cheaper iPhone….I’m too used to the whole set up now and I love it, but I suppose for those who wouldn’t buy an iPhone unless it was cheaper it’s a decent solution…
Something people probably thought the iPod mini would never take off. It would have to be significantly lower spec to work.
Id love a cheaper iphone I cant afford any of the iphones at the minute, id buy a cheaper iphone just for the music side…im not fussed about internet or apps……over the last few years music based phones nokia and sony have got alot worse, i had the nokia 5800 and i hated it i could not hear my music unless im sitting in a place with complete silence
also again as i said not every one has a well paid job why should we have to do with out,so thumbs up for a cheaper iphone and the mac mini
Oh no, the beginning of the end is downgrading!
I really dont want middle-of-the-road iphones with price tags of cheap bentley’s giving the fake impression you own a premium product.
Screw this new and great idea.Apple likes developing with a few minor changes,and re-sell and re-invent the same over and over.
Does anyone know if he gonna have live stream from tomorrow’s Apple conference?
Well, that’s the point. Apple doesn’t plan the cheaper iPhone for USA. As it was stated on some another web page, the cheaper phone is going to target countries which dont want two -year contracts when buying an iPhone. They want to make alternative to the low cost android phones which are popular among Europeans. The main point is that you guys who still want a biger phone stay with bigger phones, and the rest of the world could also use iPhones but for a lower price and ofc with some stuff excluded compared to the bigger brother.