Cheaper iPhone coming?

Cheaper iPhone coming?

Summary: Apple may be cutting production plans for the iPhone and/or prices. Connecting a few dots on various Apple items today TheStreet.

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TOPICS: Apple, iPhone, Mobility
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Apple may be cutting production plans for the iPhone and/or prices.

Connecting a few dots on various Apple items today TheStreet.com's Scott Moritz reports that the company may cut its iPhone production plans from 9 million units to 4.5 million units.

This report based on a trading note from Miller Tabak may be true given that Apple is projecting 1 million iPhone units sold in the current quarter. Why hold the inventory?

But there may not be a lot of oomph in the Miller Tabak note. Especially when you consider another research note from RBC analyst Mike Abramsky.

Abramsky said a discussion Greg Joswiak, VP, Worldwide iPod and iPhone Product Marketing "sharpened our views on iPhone momentum and strategy." Joswiak didn't disclose product plans, but Abramsky came away with the following impression in order of importance.

A cheaper iPhone is coming. Abramsky wrote in a research note:

"While not facing pressure to do so, we speculate initially Apple will differentiate its iPhone lineup not by features, but by price and memory capacity, similar to its iPod lineup, simplifying market positioning. This affirms our view of a lower priced ($349-399) iPhone CYQ4/Q1, with a higher priced version at higher capacity, to expand its market opportunity."

If true this pricing strategy may jive with Moritz's report. Wouldn't Apple want to cut production of current iPhones if it was going to launch a cheaper version in just a few months?

Widgets will be played up. Abramsky notes that iPhone's software will become the main selling point. P2P apps, home networking and Leopard integration with iLife are all possible.

Europe service is coming soon, but it won't be 3G. This item is a major issue for Europe, which is mostly 3G. Abramsky says Apple may bank on a Wi-Fi workaround in Europe.

Also on the Apple front, the company said it has sold 3 billion songs on iTunes. Nice number, but not sure what all the fuss is about.

Topics: Apple, iPhone, Mobility

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6 comments
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  • It's a small mistake, but it seems relevant

    [i]you wrote, in part[/i]
    [b]this pricing strategy may jive with Moritz?s report[/b]

    Read in context with the rest of your article, I presume you meant that the two sources agree.

    Jive, however, doesn't work in the sentence.


    from dictionary dot com

    [i]jive (j?v) Pronunciation Key
    n.

    Jazz or swing music.
    The jargon of jazz musicians and enthusiasts.
    Slang Deceptive, nonsensical, or glib talk: "the sexist, locker-room jive of men boasting and bonding" (Trip Gabriel).

    v. jived, jiv?ing, jives

    v. intr.

    To play or dance to jive music.
    Slang
    To talk nonsense; kid.
    To talk or chat: "You just jive in one big group, putting each other on, trying to top the last line" (Time).

    v. tr. Slang
    To cajole or mislead.

    adj. Slang
    Misleading; phony. [/i]

    I am going to suppose that you meant [b]jibe[/b].

    also from dictionary dot com
    [i] jibe /Pronunciation Key - Show Spelled Pronunciation[jahyb] Pronunciation Key - Show IPA Pronunciation
    ?verb (used without object), jibed, jib?ing. to be in harmony or accord; agree: The report does not quite jibe with the commissioner's observations.


    [Origin: 1805?15, Americanism; orig. uncert.]


    ?Synonyms conform, accord, fit.
    Dictionary.com Unabridged (v 1.1)
    Based on the Random House Unabridged Dictionary, ? Random House, Inc. 2006. [/i]

    (edited slightly for legibility and brevity, lol - it still seems long)

    Sorry to go all spelling police on you, but it does kind of reverse the meaning of the sentence 180 degrees, so I thought I'd mention it.
    fuzzy2k
    • Message has been deleted.

      laura.b
  • on topic: Yay for (so far imaginary) new iPhones!

    Not surprising to me. Steve Jobs was bound to come up with an iPhone that his more demanding customers could fall in love with. More battery life, bigger HDD, other carriers and more are likely to come sooner rather than later, though I expect there will be several revisions of this product over the next year or more.
    fuzzy2k
    • Maybe some of it..

      [b]More battery life, bigger HDD, other carriers and more are likely to come sooner rather than later, [/b] <snip!>

      Not in the US. At least, not the bit about other carriers. Last I checked AT&T still has that EXCLUSIVE 5 year deal with Apple.

      And for what it's worth - no iPhone to date has an actual hard drive. It's all flash.
      Wolfie2K3
  • Production cut-backs were a HOAX!!

    More info available over at CNBC:

    http://www.cnbc.com/id/20062333/site/14081545
    MarcB_z
  • RE: Cheaper iPhone coming?

    And now, what are you saying Mr iPhone expert ?
    gerardmartin