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Apple targeting Android with $200 iPhone Mini?

iPhones

By Barry Collins

Posted on 11 Feb 2011 at 07:37

Apple is reportedly set to launch an outright attack on Android with a new, low-cost version of the iPhone.

The new device will cost only $200 without a contract, and will be a third smaller than the iPhone 4, sources close to the company have told news agency Bloomberg.

The new iPhone has no home button, and may support a new "universal SIM" that allows users to switch their phone network without having to swap the SIM card.

The "iPhone mini" is intended to put the brakes on Android's explosive growth in the budget smartphone market. Android recently overtook Symbian as the most popular smartphone OS, and Apple believes it has an opportunity to move into this high volume market.

"Instead of targeting 25% of the global mobile-phone market, Apple would be going after 100%,” Charlie Wolf, an analyst at Needham & Co told Bloomberg.

The report claims the device could arrive on the market this summer, although launch plans haven't been confirmed. Apple, naturally, declined to comment on the speculation.

The news has been leaked on the same day that Nokia will unveil its new smartphone strategy.

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User comments

with a new, low-cost version of the iPhone

Could work, but isn't the iPhone supposed to be a premium brand. Having loads of chavs sporting iPhones won't exactly help that image.

By Lacrobat on 11 Feb 2011

They already have iPhones

They're the ones in "Jordan" and pink diamante cases...
Snobbery aside, I think a lower price iPhone is a good thing. They are just too expensive.

By cheysuli on 11 Feb 2011

@Lacrobat

You really think iPhones are only for the middle class and wealthy?

I'm sure you only travel in Merc's, but if you get on a bus you'll see every walk of life use an iPhone and rightly so.

By a_byrne22 on 11 Feb 2011

iPhone for £50+ less than the current iPod?

Nah, nobody will go for that!

(assuming the usual US price x 1.5 isn't applied to the UK)

By cheysuli on 11 Feb 2011

Here's the rub...

How do they make a £600 phone go for £125 and still be an iPhone?

They could remove storage memory (4GB model), but if they remove GPS or the camera, is it still an iPhone? They can't remove RAM or it won't run Apps.
Since Android phones (the competition) have all these things, the iPhone "Lite" would have to have them to beat off the other budget smart-phones.

We're debating in the office (as two of us have iPhone's and once doesn't) what could be reduced or removed and still be able to call it an iPhone. I just cannot see Apple openly admitting JUST how much their current iPhone and iPod range are overpriced.

By cheysuli on 11 Feb 2011

@cheysuli They can remove RAM. The current iphone uses 512mb so they could reduce that to 256mb.

Personally, I cant see this happening, Apple are just to premium a brand to do something like this. If anything the next model will cost more.

Or at the very least at the stated price (£299 maybe). If they do it, I could see it being an ipod touch with a phone attached.

By tech3475 on 11 Feb 2011

Question mark

The question mark at the end of the headline says it all. This is all pure speculation. Apple are infamously tight-lipped about new products and most of the guesses are wrong.

The high price of the current iPhone is surely down to it's cutting edge technology - that 'retina' 960×640 display isn't cheap to manufacture as it's unique. However, the standard 480×640 display used in many phones could be sourced much more inexpensively.

The advantage of a cheap iPhone would be it could run all the same apps as the current iPhones and iPod touch.

By Stiggy on 11 Feb 2011

It's not just the price...

I don't think price is the only problem for the iPhone. The other would be the 'whole package' approach. Even if I had a lot of spare cash just to splash out I'd still wouldn't consider an iPhone as an option mostly because of iTunes. Many people love it but I know three iPhone fanboys who still would opt out from using iTunes if they only could.

By Josefov on 11 Feb 2011

iphone for ipod nano money

Well currently i have a ipod nano 3rd gen, and a Sony Ericsson elm, i don't really need a stupid amount of features, so have never been able to justify price of a iphone. but if Apple come out with a cut down iphone that texts, calls, can run a few basic apps, has gps and can use mp3's as easily as a ipod (sorry sony but the elm has mp3 support, but the ease of use is... useless, hence why i carry ipod and the phone)

Memory is cheaper, processors are cheaper, im sure they can use a cheaper screen, so costs can be cut, my elm was 120 quid new, it has gps, tilt sensors etc, only thing missing is larger screen and some processing grunt. surely apple can implement micro SD card to alloy expansion of memory, so can offer a phone with a smaller screen, say with the old iphone resolution (app compatibility) 512mb of memory, 2 or 4gb built in ram, MicroSD and gps and say a 5mp camera, im sure new iphone5 will have like a 1mp camera, 1gb ram and 32, 64 and 128 gb memory options, so wouldnt compete with a mini version of itself, and if it was say £150 would sell bucketloads. i would buy one to replace my now ageing nano, and in one fell swoop replace my phone as well. for once it would be a bargain

By Cerberus73 on 11 Feb 2011

Why not

Samsung can make a smart phone for £50, so with an extra year for component prices to fall, I am sure Apple could hit the £200-300 price without any difficultly.

It isn't so much a case of what to leave out as, what will get cheaper? DRAM has fallen in price, flash has fallen, and a lower resolution display would be expected at the price.

By tirons1 on 11 Feb 2011

Big Market in Iphone 3G

I sold all my Iphone 3g to friends and family after we upgraded all are phones at work.

There is a massive market for the unlocked 3g. So apple are just going for that market. Same price as a 2year old Iphone 3g but selling a new product.

Also I think the Ipod and Iphone division will merger with the universal sim.

Apple could become a broker of mins and data. So when you are in an area with bad o2 3g you can go on oranges 3g. Etc. Selling the best experience to all.

It would make traveling alot cheaper.

By hadphild on 11 Feb 2011

@hadphild

As I understand it the phone regulators forbid roaming in one's home country. It would be a revelation if Apple could break the status quo.

By tirons1 on 11 Feb 2011

Big Market in Iphone 3G

I sold all my Iphone 3g to friends and family after we upgraded all are phones at work.

There is a massive market for the unlocked 3g. So apple are just going for that market. Same price as a 2year old Iphone 3g but selling a new product.

Also I think the Ipod and Iphone division will merger with the universal sim.

Apple could become a broker of mins and data. So when you are in an area with bad o2 3g you can go on oranges 3g. Etc. Selling the best experience to all.

It would make traveling alot cheaper.

By hadphild on 11 Feb 2011

Android = more choice

If Apple did this then it could shoot itself in the foot. People who might have bought the more expensive iPhone will now not bother and buy the cheap one.

Personally I prefer Android. Much wider range of phones on which I can run the software I want & not the software that Steve Jobs will let me.

By steven_h1 on 11 Feb 2011

Jobs is bricking it....

...scared of the growth of Android. You could sell an iphone for 40p for all I care and I still wouldn't have one. I like to - in the words of Apple itself - 'Think Different' and go with either Android or WinMo.

By everton2004 on 11 Feb 2011

How to sell a £600 iphone for £200

Simply charge a little bit more than it costs to make....

http://www.appleinsider.com/articles/11/02/10/appl
es_cdma_iphone_4_components_cost_171_16_cheaper_th
an_gsm_phone.html

By Flangie on 11 Feb 2011

iPhone Nano sounds good

Depending on the design, an iPhone Nano could be just the thing to get my kids, especially if there's no expensive long term contract.

Of course, there are always one or two Apple hateboys who say they'd have anything but an iPhone, but this football fan mentality isn't followed by the majority of consumers. For most consumers, the prime choice is an iPhone; if they can't afford an iPhone they settle for an Android, so a cheaper, cut-down iPhone could hit a sweet spot. But there will always be a large minority who buy just a simple phone, no features, just text and telephone: well, Nokia has to sell to someone!

What could Apple leave out? GPS, Retina display, big display, RAM, use old processor (ie the current one when the iPhone 5 uses the newer one), maybe lose a camera or two... there's plenty of things that could make a big price difference.

By SwissMac on 11 Feb 2011

Made me chuckle.....

Spoken like a true fanboy. You keep buying your iProducts.....people with a bit of individuality will buy something else. "Can't afford an iphone they settle for an Android"......classic!

By everton2004 on 11 Feb 2011

Sold mine

I sold my iphone 4 for a desire hd, much happier now! wouldnt go back either!

By Ryenose on 13 Feb 2011

made me LMAO

All you sheep can keep your iproducts, we can afford iphones but dont settle for them or being told what me must have and not being able to deviate from whatever steve jobs decides we should have. I am not a number i am a free man! i change my android phone every week, not the actual phone just everything about it, bet you cant do that on your iphone! baaaa

By highlander on 16 Feb 2011

made me LMAO

All you sheep can keep your iproducts, we can afford iphones but dont settle for them or being told what me must have and not being able to deviate from whatever steve jobs decides we should have. I am not a number i am a free man! i change my android phone every week, not the actual phone just everything about it, bet you cant do that on your iphone! baaaa

By highlander on 16 Feb 2011

made me LMAO

All you sheep can keep your iproducts, we can afford iphones but dont settle for them or being told what me must have and not being able to deviate from whatever steve jobs decides we should have. I am not a number i am a free man! i change my android phone every week, not the actual phone just everything about it, bet you cant do that on your iphone! baaaa

By highlander on 16 Feb 2011

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