Apple iPhone 5 rumors: Cheaper; not smaller

The new Apple iPhone 5 will be cheaper, according to those who know the mind of Steve Jobs. Yes, the rumor mill is grinding grain again: it won't, as we were told last week, be a smaller phone. But the faithful will need to pay less when they line up outside the Apple Store on the release date...

By Richi Jennings. February 18, 2011.

Isn't it about time we had a new iPhone 5 rumor before the release date? This time, we hear that it's not going to be cheaper, but not smaller, contradicting the previous Apple rumor. In IT Blogwatch, bloggers wonder if size matters.

Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention Fortune FAIL...


Miguel Helft and Nick Bilton monger a rumor:

Contrary to published reports, Apple is not currently developing a smaller iPhone, according to people briefed on Apple’s plans. ... Apple’s engineers are currently focused on finishing the next version of the iPhone, which is likely to be similar in size to the current iPhone 4. ... The company would not make a smaller iPhone at this time, in part because ... it would be more difficult to operate.


Another senior Apple executive said ... recently that it did not make sense for the company to make multiple iPhone models, noting that Apple would stick with its practice of dropping the price of older models. ... In recent days, some published reports ... said that Apple was building a smaller iPhone. One report gave the code name of the project as N97. Several people with knowledge of Apple’s plans said that N97 was the code name for the Verizon iPhone 4.

John Paczkowski 'leverages' Jonny's alliterative title:

Evidently, a smaller iPhone wouldn’t necessarily be cheaper to manufacture, and there are concerns that a reduction in screen size would require developers to rewrite their apps, something Apple wants to avoid. ... [But Apple] is doing its best to make it cheaper–largely by searching out less pricey components.

Josh Ong goes on and on:

According to analysts, a cheaper iPhone, especially one that does not require carrier subsidies, is critical to Apple's continued growth overseas. “If they are going to be a player in the global market they have to have a prepaid option,” said Piper Jaffray analyst Gene Munster. Sanford C. Bernstein & Company analyst A. M. Sacconaghi Jr., said that a more affordable iPhone could drive as much as a sixfold increase in sales for Apple.


As physical storage on the iPhone becomes less critical, Apple could reduce storage in the device, thereby lowering costs.

Oh, Seth Weintraub, what a way to make a living:

The current iPod touch 8GB retails for $229 so it might stand to reason that Apple could keep prices under $300 with the addition of some extra radios, considering the prices of components are always falling.

But Ben Parr rolls his eyes:

If I had a dime for every rumor that surfaces about an unannounced Apple product, I could probably buy myself an apple-shaped island bursting with iPad trees. ... There have been hundreds — if not thousands — of news and analysis stories surrounding the mythical device. And don’t get me started on the countless “Apple tablet” rumors that dominated the headlines before the iPad. ... People want to know what product the technology giant is going to launch next, and the rumors start flying. Unfortunately, the vast majority of these reports simply are off-the-mark.


Steve Jobs reportedly scrapped countless iPad prototypes before finally approving [it]. ... We bet that Apple has considered or even built prototypes of ... iPhones of all shapes and sizes. That’s just what happens when you’re trying to design new products. ... Nobody but Steve Jobs knows what Apple is thinking or planning. And that’s exactly why the Apple rumor mill will continue to churn for years to come.

Meanwhile, Sean Hollister weighs the options:

One thing's for sure: either Apple's making ... an iPhone nano ... or it's not.

And Finally...

Fortune FAIL [hat tip: Ant]

Don't miss out on IT Blogwatch:

Richi Jennings, your humble blogwatcher
  Richi Jennings is an independent analyst/consultant, specializing in blogging, email, and security. A cross-functional IT geek since 1985, you can follow him as @richi on Twitter, pretend to be richij's friend on Facebook, or just use good old email:

You can also read Richi's full profile and disclosure of his industry affiliations.

Copyright © 2011 IDG Communications, Inc.

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