Apple Working on Cheaper, More Versatile IPhone Models
Apple Inc. is working on new versions of the iPhone that are aimed at slowing the advance of competing handsets based on Google Inc.'s Android software, according to people who have been briefed on the plans.
Context & Ripple Effects
Apple had already been linked to a cut-price iPhone plan in 2009. The renewed report arrives as Android has taken Nokia's lead in smartphone shipment volumes and surpassed Apple in U.S. market share, making handset breadth a competitive issue rather than a one-model product question.
The reported models are unconfirmed, but their stated purpose is clear: Apple is considering a response to Android's expanding handset competition, not merely an incremental iPhone refresh.
First-order effects
- If Apple proceeds with the reported lower-cost and more versatile models, it broadens the iPhone range aimed at buyers being won by Android handsets.
- Google's Android partners face a more direct Apple response in price-sensitive and feature-differentiated handset segments.
Second-order effects
- A broader iPhone lineup would intensify competition over handset pricing and product choice, forcing Android device makers to distinguish their models beyond access to Google's software.
- Apple's carrier and retail partners would have more iPhone configurations to position against Android devices, shifting competition toward portfolio coverage rather than a single flagship.
Third-order effects
- The report points to a smartphone market in which platform competition is expressed through handset-line breadth: Apple may need multiple iPhone propositions as Android spreads across competing devices.
- If Apple follows through, the iPhone-versus-Android contest becomes less about a single device comparison and more about each ecosystem's ability to serve distinct buyer segments.
The trend: Smartphone competition is moving toward broader device portfolios as Apple responds to Android's gains in shipment volume and U.S. share.