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Showing posts from July, 2012

iPhone Model Lineup Changes in Store

Currently, Apple produces four technically-distinct iPhone models:

The iPhone 4S, GSM/CDMAThe iPhone 4, GSMThe iPhone 4, CDMAThe iPhone 3GS, GSM
... plus a new model in the pipeline, which we all call the iPhone 5.

Although there are component cost differences between the four current models, their costs are very comparable.  The parts and manufacturing costs of an iPhone 4 is virtually identical to that of the iPhone 4S.  The parts and manufacturing cost of an iPhone 3GS is within $35 of the iPhone 4S - and converging.  The delivery and support costs of an iPhone 3GS is virtually identical to that of an iPhone 4S.

To reduce its overall costs, Apple needs to reduce its overlapping product lines.  To stay competitive, it is clear that Apple will start to drop off it's older products in order to maximize economies of scale.

Therefore, I suspect that the iPhone product line will soon be substantially overhauled:


iPhone 5, $200 and up price range


iPhone 4S, $0.99 - $99 pric…