Competition among brands is a positive thing and very beneficial to consumers. For one, prices are reduced and the products keep on being improved to give them an edge over competition. When the iPhone landed the market it was viewed as the next best thing in mobile. The prices were a bit prohibitive for some people. Google then set in with its own smartphones running the Android OS. Some inexpensive phones that were ideal for the consumers who found the iPhone out of their reach were now available. There is some good news for those who would still prefer to own an iPhone smartphone. There is a cheaper iPhone on the way.
The iPhone smartphones typically cost between $200 and $300 dollars when offered with a two year signed contract. With the new rumored smaller phone it will cost $200 without any signing of a contract. Information from someone who has had the chance to view the new phone details that its size is around a third of the current iPhone. It also lacks a home button. The project has still not been made public. In fact it is only a few of Apple’s employees that are in the loop about this. It is also very possible that the device which in estimate should be released around mid year 2011 may be done away with. It is a usual thing for Apple to work on products that end up not seeing any daylight.
According to Bloomberg, the smaller and cheaper iPhone will be made less expensive by utilizing the components that are already in use in the company’s current model rather than more advanced parts for the next iPhone. The prices of components usually drop after being in the market for sometime. The global market share of Apple was eclipsed by Google’s. Apple had 16 percent while Google had 32.9 percent in 2010’s last quarter. The move, should it materialize, would be in the right direction especially now that Nokia and Microsoft have formed a partnership to develop smartphones. It will also enable Apple to gain a market in India and China where consumers are often interested in low priced devices which do not necessarily have long term contracts.
Making a low costing device will not be the first time experience for Apple. The company introduced a cheaper iPod Mini which cost $249 while the original was $299 and above. Apple further went on to create an even cheaper iPod Nano which took the place of the iPOd Mini. Two sources also said that Apple was working on a dual mode phone. This phone would have the ability to work with both the GSM and CDMA systems. In addition it is also working on a universal SIM technology that would allow users to use different networks without having to switch SIM cards.
Having low prices devices that do not require contracts is something that is bound to be very attractive to consumers. If Apple does indeed succeed and lowers it prices Google would also have to up it game so as to remain competitive or else lose ground to Apple. Whichever you look at it, it is all good for you and me-the consumers.