Apple customers and Apple critics alike have called for the company to produce a smaller iPhone 6; specifically the 4-inch variety (same size as iPhone 5s). Why? Not everyone wants a big iPhone or a bigger than big iPhone. Here’s the solution.
3 iPhones, Plus Trade-in
Apple already has a 4-inch iPhone. It’s the iPhone 5s and iPhone 5c which bring up the low priced end of Apple’s iPhone product spectrum.
The problem is this. It’s last year’s technology, underpowered with not much storage. In The U.S. the iPhone 5c is free with a contract but has only 8GB of storage. Apple should be ashamed.
The iPhone 5s isn’t much better, starting at $99 for 16GB. I can only conclude that both iPhone 5s and iPhone 5c exist to satisfy those who don’t know any better, or to migrate those who do to a more expensive iPhone 6 which starts at merely $100 more than an iPhone 5s for the same storage (16GB is anemic; Apple should still be ashamed).
Why not make a single low-end iPhone 6c with a 4-inche Retina display and a minimum of 16GB? The migration path to a full version iPhone 6s and iPhone 6s Plus (naming is getting funky, folks) remains. Everyone wins.
Speaking of winning, have you heard about Apple’s smartphone trade-in programs? At some point in the near future Apple will bring the hammer down on cheaper Android smartphones with a trade-in program. Bring your old smartphone into an Apple Store, get it appraised on the spot, and get a coupon or card of value to match, and use it to buy a new iPhone.
Here’s the deal. It’s possible Apple could appraise Android smartphones for not much less than they cost originally because the iPhone has such a huge gross margin. It’s like a car dealer that offers a $5,000 minimum trade-in on a car that is priced $5,000 higher than normal MSRP. People lap that stuff up because they don’t do the math.
Here’s why a trade-in deal can work for Apple. People prefer to trade up, not down. That benefits Apple, not Samsung, HTC, Lenovo, Motorola, Xiomi, or other wannabe-profitable makers. What can iPhone users trade up to? Only a new iPhone.