Cheaper IPhones: why Apple would risk its brand identity

Rumors that Apple is tinkering with one or more lightweight, low-cost versions of iPhone have been quite persistent in recent days--so persistent that they're becoming harder to dismiss.

At first glance, it is similar to Rolex launches a line of low cost of casual clothing-leather strap watches of JC Penney: just doesn't seem prudent move by a company that has built its reputation on selling high quality products at a high price, rather than good stuff at a good price. But then the reality of increasing competition combined from rival smartphone makers and growing demand for mobile consumers from around the world might just make a cheap iPhone a risk for Apple--and potentially lucrative one.

An iPhone smaller, more flexible?
First, to summarize the items: publications such as Bloomberg and, more recently, the Wall Street Journal, citing Apple Insider as saying that the company has worked on a couple of different versions of low-end (for lack of a better word) of iPhone 4.

According to the source of the WSJ, an existing prototype that is half the size of the iPhone 4, weighs much less, has a touchscreen from edge to edge, a virtual keyboard and voice-based operation.

The most remarkable of the voice, however, is that consumers may obtain this version cut to little to no cost, rather than pay $ 199 for an iPhone with a contract for two years.

Bloomberg, meanwhile, offered fuzzy details of a prototype iPhone that was one third smaller than the current model, which lacked a Home button, and that the company has considered for around $ 200 without any kind of obligation of contract of sale. This could be the same smartphone insider told WSJ.

According to Bloomberg, Apple has also worked on a cheaper iPhone can work on one of the two major wireless standards, thus allowing users to move between carriers without having to leave their device coveted. Also gives users more flexibility, as can most readily afford one smartphone out of pocket, rather than relying on grants by a carrier in exchange for long-term contracts or additional expensive services.

Another Nano ... or Performa?
It is conceivable that Apple would really shed his status of boutique and sacrificing their premium prices to get more iPhones in the pockets? The company has taken a stab at this first, with mixed success. Low cost line of Macs, the Performa series, proved disastrous. It went better with the iPod Nano, even if the line initially suffered criticism and bad publicity.

Apple seems to take with a low-end version of iPhone a greater risk than it was with the iPod Nano as a smartphone is a beast more complicated than an MP3 player. An MP3 player is not a fundamental communication tool for personal and professional, it is not necessary to provide reliable voice and mobile computing service and do not have to perform reliably applications from various developers. Too many episodes of poor Web performance, spotty reception or uncooperative applications could tarnish the reputation of Apple, although wireless service providers or developers are to blame for some of misadventures.

Still, Apple may be feeling the pressure to fight for a larger piece of the pie mobile--or perhaps to maintain its current portion. The battle for supremacy mobile is separate from your phone and rival creators are rolling out devices that can go head-to-head with iPhone. Apple iPod Nano in response to increasingly rich in functionality and cheaper MP3 players; the roll-out you may feel the need to do the same now.

In addition, Apple probably doesn't want to give up market counties like China and India or developing where Mobil is catching on. A $ 199 iPhone wouldn't fare too well in that market; could be a low cost iPhone able to jump between services.

For now, the rumors of a low-cost iPhone are just rumors, tempting as they might be. Apple needs to venture down that path, its shareholders, hope certainly didn't have another debacle Performa on their hands.

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