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Why Apple Won’t Make A Cheaper iPhone. Ever!

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If you are an Apple fan then you might have heard a few rumors regarding a cheaper iPhone. It is being reported by many reputable news outlets that Apple is making a cheaper low-end iPhone. So is Apple really making a cheaper iPhone? Well I don’t think so and here is why.

Apple Cheaper iPhone

The rumors regarding a cheaper iPhone have been coming since 2011 and none of them have been true so far. So why the recent spat of rumors regarding a cheaper iPhone have increased? Does it mean; is Apple really going to launch the cheaper iPhone in 2013? The answer is a simple no.

The recent round of rumors started back when DigiTimes pointed out that “sources in the supply chain” have pointed towards a cheaper iPhone. It was followed by another report from the Wall Street Journal which clichéd the “sources familiar with the matter” that Apple is indeed working on a lower-end cheaper iPhone. The exposé was followed by another report from Bloomberg which mentioned the same thing.

All these reports have one thing in common, and that is Apple is working on a cheaper iPhone. Cheaper iPhone? Well it doesn’t sound like Apple. In fact Apple will never release a cheaper iPhone. Why is that so? Well read ahead to find out.

Cheaper iPhone 5

Apple Is A Brand

There is no doubt that Apple is one of the top brands in the world. In fact the “Apple brand” ranks as one of the top three brands in the world. When you have a brand, you make a product and it just sells.

That is exactly what Apple has been doing for the last couple of years and will keep doing in the near future.

Apple does not need to reduce the price of the iPhone to sell more products, it already makes double the profit on each iPhone sold compared to other Android OEMs. Does Lamborghini or Ferrari need to lower their prices to sell more cars? No. People just dream to own them and if they have the money, they do buy it. The same goes for Apple’s iPhone. People really really want to buy them, so much in fact that people are willing to sell their kidneys for it.

So does Apple really need to lower the price of the iPhone to sell more? Well I don’t think so.

Short Term Profit Long Term Loss

Let’s say Apple does release a cheaper iPhone in 2013. It would sell like hot cakes. But that is it. This short term profit would make Apple lose a lot more in the future.

As I mentioned above Apple is a brand, reducing the price of the product just to gain the market share does not make sense. In short term it will make a profit but soon after that Apple would lose the “exclusive status”.

Do you remember that kid who bought the first iPhone 5 in your class/workplace? I think you would. But do you remember the first person who bought the HTC Evo 3D? Wait.. does anybody actually remember the HTC Evo 3D?

SVP of world wide marketing Phil Schiller mentioned yesterday that Apple would not make a cheaper iPhone just to gain market share. Now what more proof do you want.

I hope we don't get this cheap iPhone.

I hope we don’t get this cheap iPhone.

Low End Does Not Mean Cheap

Most of these reports mention a low-end iPhone, dubbed as the iPhone mini. Now let me make it quite clear, a low-end does not necessarily mean a cheap iPhone. In fact Apple already has a cheaper iPhone in the market and that is the iPhone 4.

Many people expected Apple to release a cheaper iPad called the iPad mini. Well Apple did release the iPad mini but it wasn’t cheap by any means. It was a pretty darn expensive one, so expensive that people were put off by it.

Apple might release a low-end iPhone but it won’t be a cheap one that is for sure.

What are your thoughts on a cheaper iPhone?

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