I would disagree with the statement that in even the next 20 years all cell
phones will be smartphones. The percentage of smartphones is growing a lot
in North America, Europe, also in China, India and South America, but there
are so many people in the world who simply cannot afford even a $100
smartphone if it existed. I have been to the Philippines several times and
there as well as in many other Asian and also African countries tens of
millions and probably hundreds of millions of people have extremely cheap
cell phones for mainly for texting since mostly they can't even afford to
buy the credit for voice. These are $10 to $30 phones, often Nokia or
Samsung knock-offs and in the Philippines, since that is the example I know,
it costs about 1 Dollar to buy a SIM card with a number. A phone with such a
SIM can receive calls even if there is no credit on the SIM at all, for
about 20 Philippine Pesos (about 45 to 50 Cents) you can buy what they call
a "load" which gives you I think 100 text messages. This allows people
(family and friends) to stay in touch, it allows people to have a phone
number so they can receive a call or text message about maybe a job they
applied for etc. but not for more. A lot of people there earn no more than
6000 Pesos (approx. $150) and have to shelter and feed a family with that. A
full-time maid/housekeeper is lucky to make half that.
Interestingly enough an iPhone in the Philippines costs well over $1,000,
last time I was there I checked because I thought maybe I could get a good
deal there. But it's only something the rich can afford and as such it's a
status symbol.
So, for those among us who complain about having spend $5 or even $15 for an
app which is now free, think again because even those among us who live on a
fixed income and don't have too much money for extras and luxuries, live 100
times better than a very large part of the population in many countries
around the world.

Regards,
Sieghard

-----Original Message-----
From: viphone@googlegroups.com [mailto:viphone@googlegroups.com] On Behalf
Of Christopher Chaltain
Sent: Sunday, February 17, 2013 8:20 PM
To: viphone@googlegroups.com
Subject: Re: A great new carier for your iPhone: unlimited everything $49
per month!

Well, this is just a rumor, but from the rumors I've read, they wouldn't
be replacing the current iPhone with a cheaper phone, but rather just
coming out with a new less expensive phone in addition to their current
phone to capture more of the low end market. I'm not sure which cell
phone executive it was, but someone said recently they they thought all
phones would be smart phones before too long. If that's true then it
might make sense for Apple to get in on that market where cheaper smart
phones replace feature phones. I haven't heard Apple do anything but
deny this rumor. On one hand it makes sense, but on the other hand, how
much would a cheaper iPhone cut into their current iPhone sales. That
might give Apple pause since they make so much money on their current
iPhone offerings.

On 17/02/13 17:52, James Mannion wrote:
> Who knows for sure what Apple will do, but some seem entirely
> convinced of these rumours out there. I even heard it said yesterday
> on TWIT that they believe Apple's market going forward is "cheap IOS
> devices." I sure hope not! Fine if they come out with a cheap IPhone
> as an alternative, but I truly hope they do not make the new IPhone a
> cheap piece of plastic with cheap electronics to sell it cheap. I know
> the large share of the market wants cheap crap, but Apple makes
> amazing profits on what they currently sell, they sell millions of
> them and some of us want to buy a quality product. These people have
> enough cheap crap options, they do not have to take our quality
> product away from us so they can have a piece of crap called an
> Iphone. Get your crap out of your breakfast box as you have been if
> you are one of those people and leave us alone is my opinion!
> 
> On 2/16/13, Christopher Chaltain <chalt...@gmail.com> wrote:
>> I can't speak to the validity of these rumours, but there are always
>> rumours swirling around about Apple coming out with a lower end/cheaper
>> iPhoen, especially for specific geographic markets. I doubt they would
>> do this unless they start losing market share to other smart phone
>> providers.
>>
>> On 16/02/13 08:25, Sieghard Weitzel wrote:
>>> Hi Dave,
>>>
>>>
>>>
>>> I highly doubt that at least in the short to medium term Apple will
>>> suddenly start to sell a new iPhone for $399 or $499. Apple is one of
>>> the few companies who is actually making a good margin on their products
>>> meaning unlike Amazon which basically gives a Kindle Fire away at cost
>>> or even below cost to get people to use their service, Apple sells the
>>> iPad at a price where they make money. Keep in mind that if they sold an
>>> iPhone for a greatly reduced price, people would no longer buy an iPod
>>> Touch and would expect iPad and iPad Mini prices to come down as well. I
>>> somehow don't forsee any changes in how big carriers do business and
>>> believe they will continue to offer contracts and subsidized phones.
>>> Keep in mind that a carrier like the one mentioned may offer an
>>> unlimited plan for $49 with no contract, but they will not give you a 16
>>> Gb iPhone 5 for $199, instead you have to pay $649 and buy one at full
>>> price. The math is easy: Over 2 years you spend 24 month times $49 a
>>> month = $1,176 + $649 for the iPhone which means a total of $1,825.
>>>
>>> Now assume you are on contract and spend $80 a month, the total is 24
>>> times $80 = $1,920 + $199 for the phone = $2,119.
>>>
>>> So, yes, the contract does cost you $294 more over 2 years given you do
>>> actually have a $80 plan, if you find one that is $70 which maybe gives
>>> you 2 Gig of data and limited voice, but maybe it's all you need then
>>> the total would be $1,879 over 2 years which is only $64 more. For many
>>> people it's easier to spend an extra $20 or $30 a months without having
>>> to come up with the high upfront cost. It's really no different than any
>>> sort of financing, people buy all sorts of stuff they probably shouldn't
>>> because they really don't have the money so they finance it and pay
>>> every month and in the end if you add it all up you pay hundreds or even
>>> thousands more than had you saved up the money to buy an item outright.
>>>
>>> And what I haven't even thrown into the calculation is the fact that no
>>> matter if you buy the phone outright or on contract, it's worth the same
>>> at the end of the 24 months if you sell it. However, if you paid $650
>>> for the phone, you are maybe more inclined to keep it for another year
>>> or so because you spend all that money for it and you would have to
>>> again spend the same to get a new phone. If you only paid $200 for it,
>>> you can probably sell it for that or very close to that since you can
>>> ask for an official unlock which makes it easy to sell the phone. Then
>>> your new phone is basically paid for by the old one.
>>>
>>> I had bought both my iPhone 4 and 4S unlocked directly from Apple since
>>> here in Canada you can do this and you can get it right away at the
>>> release date in that way. However, now carriers here have to unlock your
>>> phone after 90 days and I think I heard this maybe changing to 30 days.
>>> This takes away one reason to buy an unlocked phone at full price which
>>> is the fact that if you travel and want to put in somebody elses SIM you
>>> have to have an unlocked phone. I think it makes sense and actually
>>> don't see why carriers lock their phone at all, after all, the fact that
>>> they have to let you unlock it doesn't mean you can get out of the
>>> contract. If you do that you still have to pay out the contract which
>>> menas essentially that you have to pay them back the amount they
>>> subsidized your phone for.
>>>
>>>
>>>
>>>
>>>
>>> Regards,
>>>
>>> Sieghard
>>>
>>>
>>>
>>> *From:*viphone@googlegroups.com [mailto:viphone@googlegroups.com] *On
>>> Behalf Of *Dave Baker
>>> *Sent:* Saturday, February 16, 2013 1:34 AM
>>> *To:* viphone@googlegroups.com
>>> *Subject:* Re: A great new carier for your iPhone: unlimited everything
>>> $49 per month!
>>>
>>>
>>>
>>>     Awesome, so they do this without a contract also. And they take
>>>     money off your bill when you get friends to sign up? I'm just glad
>>>     to see competition in the contract-free unlimited-data mobile space.
>>>     I especially think this is important for us using these recognition
>>>     and GPS apps. I rarely talk using my phone, but with family members
>>>     deployed in the Armed Services, i find it nice if they want to call
>>>     and can't use Skype for whatever reason, I don't have to worry about
>>>     it. Personally, I think there'll be a time when carriers find it in
>>>     their best business interest to ditch the contracts, and handset
>>>     manufacturers, including Apple, will find ways to bring costs down
>>>     without the subsidies.
>>>
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>>
>> --
>> Christopher (CJ)
>> chaltain at Gmail
>>
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> 

-- 
Christopher (CJ)
chaltain at Gmail

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