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Bloomberg: Apple prepping cheaper phones?

Rumors of a smaller, cheaper iPhone are definitely not new and have floated around for nearly the life of the device. But Bloomberg has an article out today saying that Steve Jobs, despite being out on medical leave, is involved in strategic decisions involving a smaller, cheaper, more universal iPhone. Bloomberg quotes its unnamed source by saying the new phone would retail for about $200, lose the contract, have a universal SIM card and be a third smaller than the current iPhone 4.

Bloomberg points out how Apple released the iPod mini at a time when iPod sales were rising, but the mini addressed a new market segment that couldn't afford the larger version. It makes sense for Apple to eventually expand into the "smaller, cheaper" phone market, if only to go toe-to-toe with the myriad Android handsets now flooding the market.

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Rumors of a smaller, cheaper iPhone are definitely not new and have floated around for nearly the life of the device. But Bloomberg has an...
 

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miguel

It wouldn't shocked me if apple is working on something, something with no data plan. wifi and calling, simpler os and cool

February 11 2011 at 9:39 PM Report abuse rate up rate down Reply
JC

I would like to see a WiMax compatible device (any iOS device) with decent battery life. Those mifis just don't seem very attractive when compared to something built in/

February 11 2011 at 4:42 PM Report abuse rate up rate down Reply
Steve

How do you drop about a third of the size without affecting functionality? Use an OLED Retina Display so you can get away with little or no bezel. You'd get the same screen size and resolution in a smaller, cooler package.

Seems likely with the recent OLED rumors, and it definitely fits Apple's M.O. of leveraging a cool new technology to make the last model look like a turd.

I can just see them on stage, singing the OLED's praises- Energy Efficient, Thin, Vibrant, Magical...

February 11 2011 at 2:20 PM Report abuse rate up rate down Reply
Alex

It would be awesome if Apple just concentrated on the next iPhone being a better phone.

February 11 2011 at 1:31 PM Report abuse rate up rate down Reply
MacDoc

Not happening...

February 11 2011 at 5:55 AM Report abuse rate up rate down Reply
xxhadow1

Well what if Apple starts cutting out the carriers? They have the chip that will work on AT&T and Verizon and they sell enough in Apps now to make up for any losses that they may have for selling a phone for less than $500 (speaking of which is the same cost as the much larger iPad with no subsidies). I feel like apple is in the position that Sony and Microsoft are in, in the Video Game market.

It would be nice if the iPhone 5 comes out as a loss leader with a no contract price of $200 and then let the carriers fight over how to keep their customers by changing their draconian practices.

February 11 2011 at 5:30 AM Report abuse rate up rate down Reply
theEsco

Bloomberg is retarded.
Many of these massive wallstreet type tech pundants are almost always wrong when it comes to apple. They just try to get a story out when there hear some little peep of a rumor and don't actually think of the impact.

Cheaper phone would be good, but smaller screen? Noway. Cheaper materials? Not apple's style at all. Besides apple already has a cheaper phone, it's last years model. That's how they get out their entry level phone, and that's not going to change.

Plus, last I checked, apple still owns the market and most other companies are trying different (smaller) devices to compete. Apple doesn't need to do this. I don't see them making a smaller device anytime in the near future, if ever. Unless they just reduce the Bezel as APV said.

February 10 2011 at 11:55 PM Report abuse rate up rate down Reply
1 reply to theEsco's comment
Anthony

AT&T is now selling the iPhone 3Gs for $49, I saw it on a commercial a few hours ago.

This was probably the little spark that started this rumor above. I'd at least think so...

"A cheap iPhone"
-"Where?"
"Let's write a story on it!"
-"How will it go?"
"Ummm..... A few years ago there was the mini iPhone rumor."
-"Oh, that makes sense. RUN WITH IT!!!!! >:D"

Then there are evil smiles and this post materializes out of thin air.

February 11 2011 at 12:03 AM Report abuse rate up rate down Reply
Anthony

HP now has the webOS Veer, an extremely credit-card tiny slider smart-phone, and everyone thinks it will be really good because it still has the power of market-leading devices...

Smart-phones have been getting bigger and bigger, eventually someone's going to make a tiny one again, and people will go crazy. If it's Apple, it's going to sell good nonetheless, PLUS, if it's cheaper or doesn't require a contract then it will probably sell even more. If you can get the thing free on a contract then it will be the smart-phone ANYBODY getting their first smart-phone plan would get.

I'd probably not buy it though. Making it tinier requires a smaller display, and the OS would have to somehow be different... UNLESS the screen stays the same and the bezel on the top and bottom disappears...

My two cents.

February 10 2011 at 9:16 PM Report abuse rate up rate down Reply
1 reply to Anthony's comment
Eric

I did have to laugh when the EVO 4G was released and the commercials (and Internet "people") went on and on about the screen size, while two weeks later they were advertising another new phone as "can fit in your pocket."

February 11 2011 at 1:01 AM Report abuse rate up rate down Reply
matty blue

christ, the "confirmed rumors" of a verizon iphone finally get put to rest and you people pull out this crusty old pile? sheesh, shut up.

February 10 2011 at 7:18 PM Report abuse rate up rate down Reply
designr


The simple solution would be to ship a GSM/CDMA iPhone 5 that works with both ATT and Verizon.

But then they would need a similar dual-network iPhone 4 to sell at the lower price-point, as with the current iPhone 3Gs, say $49.

All they need is a GSM/CDMA iPhone 4 that works with both ATT and Verizon. Note that the new Verizon iPhone 4 is shipping with the new GSM/CDMA Qualcomm chip, albeit not yet enabled for ATT.

Did I not just read that Apple is trying to eliminate the SIM card?

Did I not just read that "Apple was recently awarded a patent describing a wireless selection system that would require carriers to compete for service on an iPhone."

Apple will drop the price of the iPhone 4 to $49 when the iPhone 5 comes out in July. That's how they roll.

February 10 2011 at 6:45 PM Report abuse rate up rate down Reply
1 reply to designr's comment
johnmc

Why? Such a device would really only make sense for the US market. Globally, CDMA is almost completely irrelevant.

February 10 2011 at 6:49 PM Report abuse rate up rate down Reply
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