According to a rumor from an unnamed Morgan Stanley analyst, consumers are very likely to see a cheaper, Apple iPhone, as a result of the arrival of its new sibling, the Apple iPad. This can only allude to the fabled iPhone 4GS. Turning to the impending release of the iPad, which is scheduled for release later this month, Apple’s official website still lists prices as ranging from $499-$829, depending upon size and capabilities.
If previously published estimates are correct, the iPad actually costs Apple as little as $270, per unit. If such is the case, this means Apple currently stands to profit substantially per unit. If this potentially perfect Apple storm forms as some suggest, iPad price reduction rumors may soon become a reality. This means that both loyal iPhone consumers, as well as those who have still been put off by the price and the requirement to enter into a contract with AT&T, may end up being the real winners. Though all of this is unsubstantiated, it does make sense for a number of reasons, when you put it all together.
Price conscious consumers expect cheaper, more advanced, technology.
As mentioned previously, the final selling price of the Apple iPad could greatly influence future iPhone pricing. Why? Well, if it does only cost $270 to build an iPad, Apple may seriously consider reducing the price, before actually releasing it. If they were to initially sell them at the planned, base price of $499, many consumers may actually hold off on buying one, on the chance that Apple will reduce the price in the release of the next version. This isn’t an unlikely possibility, since iPhone prices fell during their evolution, from the original model, to the 3G version, and on through the 3GS version.
Add to the equation that both the iPhone 3GS and iPad use the same operating system. With no significant, usable additions in functionality from the iPhone to the iPad, some potential iPad purchasers may opt out of the buying field. Remember, some people just want to surf the web without squinting, not create spreadsheets and read eBooks. For these reasons alone, a price reduction by Apple, now, may greatly increase public reception, in general, as well as the chances consumers will flock to purchase the iPad, upon its release.
The mobile computing market’s becoming more competitive.
With the increasing popularity of Google’s Android phone, which offers more competing applications every day, Blackberry’s strong push to regain its smartphone foothold, and Microsoft’s planned release of the Windows Phone 7 Series later this year, even a powerhouse like Apple has to be concerned about potential consumer interest in future iPhone models. Currently, iPhone 3G models still sell for $99, while iPhone 3GS models retail at $199.
The release of the iPhone 4GS, which has been rumored for June 2010, could result in the old 3G models disappearing from the market altogether. Will Apple also get rid of the 3GS models, in an effort to politely force existing 3G and 3GS owners, as well as new customers, to purchase the 4G model exclusively? If such a bold stance were to be taken, Apple would certainly have to make it worth the consumer’s while.
Will the iPhone 4GS have a sufficient wow-factor?
While details are still very sketchy about what consumers can expect from next-generation iPhone, there is already significant speculation regarding significant improvements over the current version. Apple released the iPhone SDK 3.2 beta and encouraged developers to download it and begin making applications for the iPad, shortly after the company’s public announcement of the tablet. This could also be seen as a strategic move, on the part of Apple, to maximize the consumer’s bang for their buck, right out of the iPhone 4G gate.
Additionally, news recently surfaced regarding the possibility of a new Apple patent that may signal the introduction of new and improved touch-and-swipe technology. The technology is rumored to improve one-handed navigation and include additional functionality to allow users to finger swipe the iPhone’s camera lens, to initiate incoming calls and control voicemails. Some go so far as to indicate that the swipe functionality will extend beyond the current touch-screen, to allow for control of key features, such as a user’s iTunes library, in a manner similar to that of Apple Magic Mouse.
Will Consumers be the real winner in Apple’s fight for dominance?
As always, speculation runs rampant and all rumors are unsubstantiated. What is certain, though, is that the mobile computing market is becoming more competitive, with each new product released. This includes both the current smartphone market that the Apple iPhone continues to dominate, as well as the tablet market, into which Apple is ready to dive headfirst, with the long-awaited release of the iPad. For future generations, like the iPhone 4GS, and new products, like the iPad, to succeed, Apple will be expected to raise the technological bar by those upon whom they depend most…the consumer. Ultimately, if Apple CEO Steve Jobs hopes to deliver another shareholder briefing, in 2011, that includes boasting of a floating, positive balance of cash, he will do everything in his power to make sure the iPad and iPhone 4GS give consumers the wow-factor they desire and have come to expect.
Justin E. Gehrke is the founder and owner of Geek Shui Living. As a right and left-brained geek, he writes Tech articles for MWD and his own site, Geek Shui Living. You can also follow his Tech commentary and random geek ramblings, via Twitter, at @GeekShui
