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Often enough, rumors surface the newswire concerning companies that are fictional or unsubstantiated - manufactured in order to countermeasure an unfavorable/unpleasant media prediction or negative publicity concerning a company and its products. That’s why public and media were highly skeptical towards reports from the Wall Street Journal and Bloomberg (published last week) suggesting that Apple is currently developing a low-cost iPhone device, scheduled to be launched within 2013, since these rumors followed reports that the company had reduced its orders of screens for the upcoming iPhone5 – a clear indication that demand of the phone is weaker than expected by company and market analysts, and that the targeted sale volumes (for the new iPhone5) - as set by the company - would not actually be reached. Thus, most media and IT analysts deemed that the rumor of a cheap iPhone lacked credibility, thus it didn’t really made headlines. However, when a few days ago Reuters withdrew one of their articles in which Apple’s Marketing Chief Phil Schiller downplayed the idea of a ‘cheap iPhone’, these rumors (of a cheap iPhone ‘ad portas’) once again gained momentum and became headlines in media worldwide, causing huge publicity waves. Since the iPhone is not what you might call ‘a cheap product’ -quite the opposite in fact- the Jeebboo team (www.jeebboo.com) decided to conduct a survey in order to measure the impact from the news on the Jeebboo members, and also to make a validated prediction on whether or not releasing a cheaper iPhone is a smart move for Apple after all: Should the company keep servicing the high end of the phone market (meaning higher income individuals who can afford the $650 that an iPhone 4S currently costs in the US), or should instead downsize the iPhone (by making it cheaper) in order to include lower income buyers who are interested in purchasing a smartphone but since they cannot afford to spend $650 on a phone, and they turn to competitive products (such as the Samsung Galaxy III)? The following poll was created: “What do you think of Apple’s rumored cheaper iPhone?” The majority of the Jeebboo members (38%) welcomed the release of a cheap iPhone on the grounds that no sacrifices are made on quality (“Cool, if the quality is the same”). These Jeebboo members seem to be raising a valid argument: Since the release of the first iPhone, its most appealing aspect was its paramount product quality combined with high tech features. A cheap iPhone (of low quality) is effectively rendering as void any reasons for buying it in the first place. Great insight by the Jeebboo members! Moreover, 13% of the Jeebboo members were overwhelmed by joy and enthusiasm on hearing the news (“Can’t wait for it”). These Jeebboo members obviously wanted (for some time now) to purchase an iPhone device, but were unable to do so, due to its high price. But that could change if a cheap iPhone is released (as alleged) within 2013. Another 9% of the Jeebboo members downplay all rumors for the release of a cheap iPhone (“It’s just rumors”). These Jeebboo members firmly believe that Apple will not cannibalize its iPhone product by introducing a cheaper iPhone version in the market. They also point out that the iPhone is not simply a smartphone – it is a status symbol (due to its higher price) for its owner, meaning that a significant percentage of the Apple owners buy it because it is a symbol of wealth; these Apple owners will not like it when the iPhone becomes cheap and affordable by the masses. It would cease to be a status symbol, and turn into a cash-cow product. Finally, 40% of the Jeebboo members stated as being indifferent to the news, most probably because they are not Apple fans and not interested in purchasing any Apple products (such as the iPhone). Thanks to the Jeebboo survey we’ve been able to establish that a significant percentage (38%) of the Jeebboo members will be very much interested in purchasing the alleged cheaper version of the iPhone, if product quality remains the same.
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