Wednesday, February 16, 2011

Apple making a shrunken iPhone? That would be tricky

By Cnet.com

Is there a way to take away features from the iPhone and still make a product people want to buy?
Word is that Apple has already or is currently considering this question. Rumors are swirling that a smaller and cheaper version of the iPhone to go on sale later this year.
Should we believe these reports? Probably. The big mobile tech event Mobile World Congress just kicked off in Barcelona. Apple's not there, but the company does make a habit of trying to steal the thunder from big trade shows, like it did when it sent invitations to reporters during the Consumer Electronics Show that everyone assumed rightly was the announcement of the long-awaited Verizon iPhone. Like CES, the MWC is big on Android and Windows announcements, so it makes sense for Apple to want to make a little noise. Of course, the leaked reports could just be a trial balloon to gauge consumer reaction, but Apple isn't exactly known for taking a poll before it does something.
So what would this mini-iPhone be like? Let's look at what the folks in Cupertino have done before with downsizing of existing, popular devices.
It's not out of character for Apple to take a well-received yet pricey product and make smaller versions that are more palatable to price-conscious customers. We saw it with the iPod, and we see it with MacBook models. But the same idea does not easily translate to a cell phone that also functions as a photo and video display device and mini computer.
Apple is adept at introducing a product people want, slapping a fairly high price tag on it, establishing a market for it, watching it become popular, and later introducing models that are scaled down in price and features that end up bringing in the most mainstream consumers.
The iPod Nano is the classic example. Apple took its extremely popular original iPod, which had a large hard drive for storing thousands of songs, scaled down the storage size and screen size, and knocked the price tag down to first make the iPod Mini.

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