Why a cheaper iPhone doesn’t make sense
The future of the world seems to be hinging on the lesser priced iPhone that Apple is believed to be working on. But, it doesn’t make sense, considering there is a lot more that Apple could lose if it all goes pear shaped.
Rumours after rumours suggest that Apple is working on that ‘less expensive’ version of the iPhone. When the likes of WSJ pick up on ‘sources’ and ‘analysts’, and attempt to chart out the future roadmap for Apple, it does resemble a journey that will probably only go downhill. Yes, we all know that the cheaper Android phones are selling well primarily because the affordability, and secondly because of the sheer options available to the buyer. But, that shouldn’t be why Apple has to make a less expensive iPhone.
Before I go any further, some people, mostly for the sake of writing something to pander to the rumour mill, had earlier suggested that an ‘iPhone Mini’ is on the way. That drama went along for quite a while, till everyone got bored with the mongering and went away. Now, we have the ‘cheaper’ iPhone logic being bandied around like it is the next big thing. As a word of caution, the rumor mill is designed to suck you in and make you believe that it is true. They will even make you doubt your logic, sense and knowledge, like a predator.
First and foremost, nothing from Apple till now has suggested that yes, it is indeed working on a plastic iPhone. If at all, it has been the other way around. No one doubts that Apple wants big profits. After all, that is why they are in the business. But, in a situation akin to one that demands the ‘if it isn’t broke, why fix it” logic, why tinker with the tried and tested formula that has worked all along for them? The iPhone has always been an expensive device purchased by those who really wanted to. It became a fashion accessory, an aspirational device along the way. And this has worked to the extent that Apple currently has more cash than the U.S. Treasury! With a device that has a smaller price tag, those margins will obviously be lesser.
Let us look at the example of the iPad mini. At $299, it would have taken the competition and basically wiped them off the face of the planet. What did Apple do? Priced it at $329 and let the market forces, the fans, the aspirational value and the brand perception do the job instead, on the shop floor. $299 means more sales, but $349 means more moolah. The Apple stamp ensures that.
I do not for one second believe that Apple will be happy with a plastic phone that basically is not Apple-esque. In other words, it might suck. Badly. That could and surely will do a lot more harm to the brand than the benefit the potential sales could bring in.
Globally, mobile service providers can make the iPhone affordable. At the moment, while the initial buying amount is well within reach, the monthly billing plans as per contract are rather expensive. Because they believe iPhone users are rich dudes who can pay a lot. If that mindset changes, and contract prices are made a tad sensible, the existing iPhone become affordable straightaway!
Then there is the issue of generations and product line-ups. So, what I am led to believe is that Apple will have the iPhone 4, iPhone 4S, iPhone 5, the iPhone 5S/iPhone 6 and the ‘cheaper’ iPhone all available in the market at the same time. That will certainly confuse the buyers a hell lot. And how will they be priced anyway?
What happens to the iPhone 4S and the iPhone 5 when the next proper iPhone launches (not the cheaper one)? Wouldn’t they be the logical choices to get price corrections and slot into the price bands that the damn plastic iPhone was supposed to pander to? At least, they are guaranteed to not “suck”! And despite some claiming it is ‘older hardware’ at that time, they’ll still offer better performance and a better user experience than what the affordable Android or Windows Phone devices would.
Not to say that Apple may never make a plastic iPhone that targets the affordable price bands, but that will only be if the quality and experience aren’t compromised. If they can manage that, Good luck. If not, they will certainly not take the foot to the axe.