Will Apple Compete On Price with The Next iPhone

A few days ago we posted an article about Apple looking to set the next iPhone at a considerably cheaper level than the ones that have been released in the past. In fact, the rumored price is between $99 and $149, which would be a sharp price drop from the latest iPhone.

New Markets

This device could be released as early as late 2013 and focus on attracting developing markets. The big one would be China where the current iPhone had good numbers.

Apple would also be better able to compete with Android devices that have improved in quality and are gaining in market share. As the differences between the iPhone and other devices become fewer, more consumers are looking at the cheaper models.

The less expensive version would allow Apple to compete in markets that have only begun to adopt the smartphone.

A Change in Design?

For Apple to offer this discounted device, they would have to alter their design. This could include a cheaper case and lower resolution screen.

This is a completely new move for Apple, a company that has always competed on the basis of offering new technology that no one else offers. Analysts offer the suggestion that Apple’s innovation may be slowing; therefore, allowing other companies to catch up to it and reduce the difference between the companies.

The other side of the story is that emerging markets is where growth is expected to be seen as other markets are already saturated. If this is the case, price is going to be a prime point of the smartphone.

According to Bloomberg, the company has been involved in a less expensive phone since early 2011.  However, an executive from Apple says it won’t be making a cheaper phone in the near future. Is this the final word or will we indeed see a less expensive Apple product in 2013?

As we watch Apple moving in new areas and doing things that is against tradition such as offering a 7-inch tablet and now a less expensive phone, one has to wonder: what would Steve Jobs think?

[Image via wired]