Apple considers using tiered pricing for the iPhone
Toni Sacconaghi, an analyst with Berstein Research, recently met with interim Apple CEO Tim Cook and other Apple executives, and came away with some interesting tidbits about future plans Apple might have with the iPhone.
After his meeting with Cook, Sacconaghi noted that Apple was looking into ways to bring the iPhone into new markets, and one of the avenues Apple’s exploring is an examination of how tiered pricing for the iPhone might attract new customers. As it stands now, the data plan required for iPhone users stands as a significant barrier to entry for a large number of consumers, a situation only exacerbated in the current economic climate. While Tim Cook has openly stated that Apple would not enter the low-end phone market, a cheaper data plan could be an alternative that Apple would be willing to consider in order to drive up demand. Of course, Apple isn’t operating alone, and any thoughts of adjusting iPhone pricing would most certainly be the topic of serious discussions between Apple and AT&T. Keep in mind that AT&T subsidizies every iPhone sold, but makes up that cost over the duration of a 2 year subscription. A lower data plan might make sense for Apple, but convincing AT&T to hop on board is an entirely different story.
Notably, Sacconaghi surmised from his meetings that any iPhone Apple releases would have access to the iTunes App Store, putting to rest rumors of an iPhone Nano with crippled functionality, and no app store access. Also telling were reports that Apple executives aren’t exploring the option of releasing an iPhone with a physical keyboard, which also puts to rest rumors of a mythical iPhone Pro model.
Various models of the iPhone may well be a possibility sometime in the distant future, but for the time being Apple seems content with their current offering, and are focused on getting the iPhone into as many hands as possible.
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