When it comes to the smartphone industry, Apple needs an iPhone with a larger screen. I say that by looking around at the growing number of people who carry non-Apple smartphones with much larger screens. Here’s another trend that speaks to Apple’s desire to have all of us carry a Mac, an iPhone, and an iPad.
Need. More. Money.
To be honest about it, this red, white, and blue bona fide Apple fan girl spends a lot of money to help keep Apple the richest company on the planet.
The iPad and iPad mini are perfectly positioned between iPhone and Mac so that many of us will purchase all three devices.
Of course, we’re using our Macs less and less (hence the recent sales drops as users don’t upgrade as frequently), and iPhones and iPads more, but money is money.
Can you guess the latest trend (as observed by MacKenzie Research of Brooklyn, NY)? I have an even dozen friends, co-workers, and family members who have dumped their iPhones.
That’s right. Dumped.
What did they buy instead? A Samsung Galaxy S4? Nope. A Nokia Lumia Windows Phone 1420 (6-inch screen)? Nope.
They bought an iPad mini, ditched the iPhone, and picked up a cheap, small, decidedly plastic $10-a-month feature phone. Whoa! That doesn’t make sense. Or, does it?
The Real Money Deal
Here’s the deal. At the low end, a $16GB iPhone 5S starts at $199 on AT&T, Verizon, et al. As the example, let me use AT&T (which I once used and hated, then switched to Verizon whose 4G LTE service in New York is now worse than At&T’s) and the Mobile Share plan– 3GB of data for $110 a month. Give or take a few dollars, that’s the going rate.
The total cost of the iPhone 5S over $24 months is $2,839 ($199 plus $2,640). For Apple fans who also want an iPad, the iPad mini with Retina display adds a minimum $399 to the iPhone’s price, for a grand total of $3,238.
Is it any wonder Apple is so rich?
Here’s what some of my friends are doing to save some money. They’re ditching the iPhone and picking up a cheap, plastic feature phone for $30, with a $10 per-month price tag for calls. And, they’re buying an iPad mini with Wi-Fi plus cellular option. That’s another $499 up front, and $30 a month for the same 3GB of data as the iPhone plan above.
24 months at $40 a month is a mere $960 ($10 a month for the cell phone, $30 a month for iPad mini cellular connection). Add the $429 for the cost of an iPad mini, and a cheap plastic cell phone, and the grand total is $1,389 over two years.
Or, put another way, less than half the price of owning an iPhone and an iPad, but with most of the same features (an iPad mini with Retina display and the cellular option would cost $100 more).
This is why smartphones with larger screens are becoming a popular option. Apple would prefer we buy both an iPhone and an iPad Air or iPad mini, while a large screen smartphone does the duty of both devices for far less money. And so does the aforementioned iPad mini with a cellular data plan, coupled to a cheap plastic feature phone.
Apple needs an iPhone with a larger screen, and soon.