5 Reasons a Small, Cloud-Based iPhone Makes Sense
Earlier this week, rumors of a smaller, half-price iPhone from Apple started circulating from the Wall Street Journal . As someone who prefers mobile devices with screens between 4- and 7-inches , I quickly dismissed the idea of a mini iPhone. But after I started thinking about Apple’s various revenue sources, the fact that the current Apple TV is a streaming device, and how Apple manages the iPhone experience through iTunes, I began to see several reasons why a small, cloud-dependent iPhone makes sense. 1. It’s all about the price. The cost of the phone affects both Apple and consumers. Apple needs to find a way to keep its profit margin high while still reducing the price consumers pay, or risk not having a product that competes against Android phones in the free-to-$150 price range. One way to accomplish this: Design a smaller iPhone with less internal storage while squeezing component suppliers for better pricing through large prepayments. The bill of materials for Ap...