4 Reasons Apple Doesn't Need An iPhone Nano - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Devices
Commentary
4/23/2012
11:38 AM
Eric Zeman
Eric Zeman
Commentary
50%
50%

4 Reasons Apple Doesn't Need An iPhone Nano

Bringing an iPhone Nano to market now would be a mistake for Apple. Here's why.

One again reports have bubbled up online that Apple will bring a lower-cost iPhone to market by the end of the year. Here are four reasons why Apple shouldn't bother.

1. Screen Competition: In the past, iPhone Nano rumors have pointed to a smaller device that has a smaller screen. This is exactly the wrong direction for Apple. Every iPhone sold has shipped with a 3.5-inch display, which is now at the bottom of the smartphone barrel when it comes to size.

Most mid- to high-end Android smartphones ship with displays measuring more than four inches. Same goes for the bulk of Windows Phone devices. With the competition churning out gorgeous displays ranging from 3.7- to 5.3-inches, now is not the time for Apple to scale things down. Instead, Apple needs to make the next flagship iPhone bigger and keep its low-cost device the same size as the iPhone, 3G, 3GS, 4, and 4S.

2. iPhone 3GS: One of the arguments in favor of the iPhone Nano is that it would let Apple offer a lower-cost device to markets where price is more of an issue. The only problem is that Apple has consistently dropped the price of its older models. The iPhone 3GS, which is nearly three years old, is still available. AT&T offers it for free. Would an iPhone Nano sell for free? I doubt it. The one question is how much cheaper could Apple make the iPhone 4/4S once the iPhone 5 ships?

3. Lower Margins: Apple is a successful company because it is able to keep relatively high margins for its products as compared to its competitors. An iPhone Nano would have to be offered at a price point closer to the cost of materials. Given how much Apple spends on advertising, it is possible such a device would have narrow margins. This simply isn't in step with Apple's proven track record.

4. iPod Touch: The iPod Touch is still around, and can be scooped up for $199. It offers nearly all the functionality of the iPhone, minus the ability to make cellular phone calls. With the iPod Touch, developing markets already have the ability to put a cheap device that will run all the iOS apps out there in a compact and attractive form factor. An iPhone Nano could have a significant negative impact on the iPod Touch product.

This isn't to say Apple won't bring an "iPhone Nano" to market, but it probably won't follow the path many people currently have in mind. I'd believe Apple will offer a low-cost version of the iPhone 4 before I'd believe Apple will bring a smaller-screened device to market.

At this interactive Enterprise Mobility Virtual Event, experts and solution providers will offer detailed insight into how to bring some order to the mobile industry innovation chaos. When you register, you will gain access to live webcast presentations and virtual booths packed with free resources. It happens May 17.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Aden11
50%
50%
Aden11,
User Rank: Apprentice
4/24/2012 | 6:45:37 PM
re: 4 Reasons Apple Doesn't Need An iPhone Nano
Stick with 'cut & paste' company called Samsung and stop nagging about others.
ics-com
50%
50%
ics-com,
User Rank: Apprentice
4/24/2012 | 3:12:45 PM
re: 4 Reasons Apple Doesn't Need An iPhone Nano
I'm with you, but I'd like to mention that there are still a ton of people around the world living in poverty... maybe it's smart to have a phone that's a little smaller that they can afford. Just considering it from the other side of things, but you make some awesome points.
pgouldsw1
50%
50%
pgouldsw1,
User Rank: Apprentice
4/24/2012 | 8:51:47 AM
re: 4 Reasons Apple Doesn't Need An iPhone Nano
Would they use the same Jurasic O/S they use on all their other way overpriced Chinese rebranded products if they did make one? I'm sure if they did, the iSheep (thanks Samsung for this) would queue for weeks to buy one
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Commentary
The Growing Security Priority for DevOps and Cloud Migration
Joao-Pierre S. Ruth, Senior Writer,  9/3/2020
Commentary
Dark Side of AI: How to Make Artificial Intelligence Trustworthy
Guest Commentary, Guest Commentary,  9/15/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
Slideshows
Flash Poll