Apple’s iPhone grew in size recently when Apple released the iPhone 5, and while the trend may suggest that future versions could aim for a larger screen, there’s no way to be sure what Apple may come out with after iPhone 5. In the meantime, other smartphone manufacturers are also releasing larger and larger phones. But in a time when many users are starting to carry a tablet and a phone, is there a benefit to shrinking a version of the iPhone?
Some members of Ars OpenForum certainly think so. The discussion about a speculative iPhone mini has been getting a lot of heated contributions in the thread "Idle thoughts about an iPhone mini." User dh87 kicks off the thread by asking the question: “What phone do you need if you're almost always carrying an iPad? I don't think that phone is an iPhone 5. The phone you need is small, light, and doesn't require much computing power or memory. This imagined iPhone is either an adjunct to another device or for light users. Any heavy lifting—extended surfing or video viewing—is done on the iPad.”
As you’ll see in the posts that follow in the thread, there are many users who say that there is no market for such a phone and that Apple won’t be pursuing that strategy. Although others will argue that a mini smartphone is not such a far-fetched idea. There are already such phones on the market, as we reported in January.
Below are some of the other reasons members of the OpenForum think there could be a good case for an iPhone mini device:
Competition in the global market
Some users in the OpenForum make a case for an iPhone mini based on the potential market penetration that Apple could access in countries where the price of the device is a barrier. But ClarkGoble remarks that rolling out a less expensive iPhone of this type would work against Apple’s previous strategy: “I think the ultimate issue is whether the very price conscious are ever apt to buy an Apple phone when they'll always be able to get a cheap Android phone build with next to no margins for much cheaper. Apple doesn't want to get drug into the low margins area. They want to be where the money is, not the commodity market. What's happened is that the commodity phones that used to do nothing well now can have a copy of Android put on them for nothing. So it's unsurprising they will. Those phones will always dominate those most concerned about price and probably most of the developing world. I think Apple wants a slice of that pie, but only the slice where people are willing to pay a bit more for a good phone that's still affordable. Apple probably then hopes they can use their large purchasing power to get economies of scale the cheap producers can't. Knowing Cooks' genius in this regard it is possible that Apple might just get such good prices that they can eek out a reasonable margin in a segment with very low margins.”
Amateurpro adds, “I'm still at a bit of a loss as to why Apple didn't continue with the 3GS for emerging markets (e.g. most of Africa) where 4G does not exist, or why they haven't reformulated the 3GS as an iPhone mini (regular iPhones 4" or larger, mini at the 'classic' screen size) with a plastic case and limited storage options. Cost for such a phone would be low due to lower component costs for the older tech, and it could even be re-purposed as a competitive lower-cost prepaid phone in other parts of the world. There is a case to be made for an iPhone mini, but at present Apple seems more than willing to cede it to others.”
Squiggy also thinks there would be a benefit to releasing a smaller, cheaper iPhone using internal parts previously used: “Apple's post-sale profits per device have always been a partially untapped goldmine so even if they broke even on a device à la Amazon or Google they'd be in a better position to profit from it. Part of the appeal of an Apple device is it has a certain cachet though, so it doesn't really make sense for Apple to slug it out with the bottom feeders. A 4S class device is where they should aim for 2013, old, but still nice. The trick of course is getting it to $300-400 ($0 with contract). A plastic iPhone 5 style case, cheaper cameras, A5 chip, 16GB storage, no LTE. Maybe rename it to create a little bit of extra (marketing) distinction between the budget device and a "real" iPhone. You'd cannibalize some high-end sales but there'd be enough of a performance gap between the devices that most people who could afford it would go high-end and you make up the loss in margins with more iTunes (apps, music, movies, etc.) sales. And of course growth in marketshare would also hurt competitors, improve the ecosystem, etc.”
Moving in on pre-paid plans
Megalodon’s opinion is that there is a lot of room for market growth in the US by going after pre-paid plans, and that an iPhone mini could help Apple go after this market.
Ars Technica’s own Iljitsch van Beijnum (aka iljitsch in the OpenForum), who is not based in the US, comments: "I understand that in the US a lot of 'prepaid' is really a contract for a fixed (minimum) monthly payment except that you can cancel whenever you like. I think in the UK they use the term 'pay as you go' for the kind of service where you buy credit that is only used up when you actually make calls etc.”
Megalodon adds, “If you look at contract subsidized prices, they top out at about $200, with extreme examples up to about $300. Off-contract smartphones worth using at that price are a key enabler for prepaid. Obviously I think Apple can push that price up a bit, but if it's important everywhere else and it's becoming important in the US, yeah, better to get on top of this before it's a problem than long after.”
More options on form factor
The iPad mini introduced a nice option for potential tablet users who wanted to work with a lighter device with similar (but not equal) computing power. For yesno, the possibility of an iPhone mini could provide more flexibility based on lifestyle or user needs: “Since getting my iPad mini I have also been thinking about how redundant my iPhone seems. I have a 4S and it feels too big and bulky—not really looking forward to upgrading it to an even bigger phone. Instead, I'd rather have: An iPad mini that places calls, theoretically reducing the number of gizmos I carry around, An "iPhone" that is a similar size and shape to the current, 2.5" screen iPod nano. This notional iPhone nano would be along the lines that chleuasme mentioned—a few of the most popular smartphone features built-in, but not really set up to be a fully-capable app platform. Of the two, the latter appeals more to me. The current gen iPod nano is a really nice form factor, and it wouldn't surprise me if Apple saw it is a testbed for a future cheap phone. I think it would be possible to have an okay messaging, e-mail, camera, media, restaurant-finder, and maps experience on a 2.5" screen, if it was high-res. But working against this is that a smaller device with decent battery able to place calls, and with wireless data, would be quite an engineering challenge, and it would only make sense if it was very cheap and unsubsidized. Smaller is not necessarily cheaper.
Japtor finds this option feasible, but with some caveats: “I think that'd be the biggest issue with any smaller form factor (barring just shrinking things like the iPad mini): it wouldn't be backwards compatible with existing apps like all the other iOS devices have been. That said it'd be interesting to see usage data of cheap smartphones, like I wouldn't be surprised if the Apple apps plus a few major third party ones would be enough for a lot of people.”
Secretmanofagent disagrees with speculation about a smaller iPhone: “Apple would be lambasted for releasing a product that accentuates something [the small size of the screen] that is already one of the primary complaints of their current line of devices. Seriously, the topic of a smaller iPhone is silly.”
What do you think?
Yesno is not hopeful about what Apple will announce and release in the next version of their iPhone lineup: “Sadly, what is most likely to me is that Apple releases a budget iPhone of sorts that is cheap, unsubsidized, and would probably be a hit, but wouldn't be much of a rethinking of what form factors a phone can take.”
What about you? Would you want an iPhone mini, and if so, why? Register for an account to participate in the discussion, or share your thoughts in the comments below.
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