After the release of 2013 quarter Q2 earnings, Apple CEO Tim Cook said, China has an unusually large number of potential first-time smartphone buyers and that’s not lost on us. We’ve seen a significant interest in iPhone 4 there and have recently made it even more affordable to make it even more attractive to those first-time buyers. We’re hopeful that helps iPhone sales in the future. “We’re continuing to do that in other markets. We believe the [iPhone 4] for the price point we’re offering is an incredible value for people that allows people to get into the ecosystem with a really, really phenomenal product.” He said.
In accordance with the normal Apple product release cycles, after Apple released iPhone5S, it will shutdown iPhone 4. But from the above expression of Tim Cook, iPhone 4 will exist in the future, this constitutes a "cheap iPhone" basis. However, I'm afraid this is not cheap so simple.
From Apple on the development path of iPod, we will find that after several generations of evolution of the iPod (lighter and thinner and elegant), developed the Nano, Shuffle, Classic and Touch several branches. In each branch development after several generations, have launched a world of fashion, color version of the product. These color versions can even fashion wear, becoming part of fashion.
It is clear that after the evolution to the seventh generation iPhone, these diversify options have become choice for Apple. But Apple's selection is clearly more elegant and less offensive.
Specific approaches may be this: Apple would retain the basic configuration-core iPhone 4 3.5 inch retina screen, provides a single A5 processor, camera pixel is 5 million, and so on – replace new fuselage color such as blue, red, yellow, black and white plastic case and a new interface. Due to the experience of iPod and iPod touch, this product will be rendered on a new look, titanium vector editor believes that this product will be named iPhone Nano. Thus it is becoming the iPhone family a whole new category. When Apple iPhone 5S comes, whether there are many kinds of iPhone 5S cases for iPhone users, just like cute iPhone 5 cases, maybe some people like cheap bling iPhone 5 cases, compare with the new iPhone 5S, the new iPhone 5S cases also are anticipated
Taking into account its basic low configuration, despite the price (based on rumors) the price is about $ 299, their profit margins will continue to be considerable, may be further pushed Apple's profit margin.
In addition, the phone will become Apple's iPhone 5S series Classic. In 2014, a stability upgrade iPhone Classic Series 4-inch screens at the same time, Apple will also launch a large-screen, leap (lead generation) configuration of the iPhone is 6--but it is clear that Apple will launch a new solution. Meanwhile, the iPhone nano will also upgrade along the path of iPhone 4S.
At this point, Apple's iPhone will form a complete industrial chain: high-end iPhone 6, high-end iPhone Classic and lightweight iPhone Nano. Due to iPhone 6 maintained products upgrade, price keep not variable of traditional, iPhone 6 will priced in 499 dollars, became full new products line; iPhone Classic 2 will upgrade price and launched color version, price will maintained in 399 dollars, and iPhone Classic 1 (that 5S) price drop for 299 dollars; iPhone nano 2 also will upgrade price, by original of 299 dollars, drop for 249 dollars, and iPhone Nano 1 price will drop to $ 199.
I tend to think that Apple want to high end of the market and the carrier bundle, while the low-end machine for sale, ready machine card separation, users will want to have a more mobile, so that paired with fashion. While 2014, $ 200 iPhone appears, its position in the Smartphone market will be able to complete the consolidation – just like the iPod nano after the launch, it was the dominant music player.