Lately the rumors mill has been churning up rumors that Apple will release a lower end iPhone alongside the standard iPhone. This new iPhone is rumored to have a polycarbonate casing and possibly have cheaper components. The idea is to produce an iPhone that compete with the lower cost phones. This could be good or bad.
The ideal solution is that Apple keeps putting out the products we know and love and just creates the a new lower cost iPhone to sell to those people who don’t want to pay the 200 dollars for a subsidized iPhone. Then the Apple fanatics can keep the good stuff and Apple benefits from more people buying and getting hooked on iOS.
Another interesting proposition is that these phones would only be sold in places where people are less willing to pay the price for the better phone. In other words, This phone could be made solely available for residents in china. If this is the case, nothing changes for existing iOS users.
This whole thing could start a chain reaction which would lead Apple down a road that is not desirable. First Apple could release both models and due to the lower price of the cheaper iPhone it may outsell the better iPhone by a large margin. Then Apple may decide that it would be more profitable to produce only the iPhone made of cheaper components. This would simplify the supply chain and Apple could get back to the comfortable one product mantra.
A thought that adds to the concern is once the cheaper phone model is in place, Apple could turn to all of their hardware and create products that are all around cheaper.
Another mild concern is if Apple releases a cheap phone and a more premium phone, carriers may push back and try not to sell the more expensive phone as it may cut into their margins.
There have been numerous interviews with Tim Cook that he has mentioned he is most concerned with making the best products. If the Tim is concerned with making the best products then the “Bad” road doesn’t align well with his goals.
So the prediction is, Yes, A cheaper iPhone will be made to compete with the cheaper offerings from Android. This will be a separate product and it will remain inferior in both build materials and specifications. The premium iPhone would keep the same naming convention and the cheaper iPhone will have some other character or series. So expect and iPhone 6 and iPhone 6C (C for Cheap, this is just a guess).
What do you think? Would you invite a cheaper iPhone for lesser quality? Do you think Samsung would sue Apple for now using polycarbonate casing? Let me know.