Cheap iPhone Rumors – A Blessing for Business

After the iPhone 5 (pictured), rumors say Apple will release a cheaper, plastic version of the iPhone.

After the iPhone 5, rumors report Apple will release a cheaper, plastic version.If you don’t have an iPhone because it’s too expensive, you can have one soon.

There are rumors that Apple wants to increase its sales in different countries, especially China, the world’s biggest smartphone market. Because smart phones have already saturated the mobile communication market in developed countries, the Chinese smart phone market is growing at a 17% higher rate than the rest of the world.

According to these cheap iPhone rumors, Apple is testing a new, cheap iPhone, available in 5 colors, with a 4 inch screen, a 5 megapixel camera, and made of plastic available as early as September. Compared to the iPhone 5 models, it seems like a downgrade until you realize the cost will be considerably lower.

Drive to Affordability

Apple is reducing its profit margins to gain a competitive edge over Samsung and other brands that are becoming dominant in the affordable smartphone market. Despite shipping more phones than ever in 2012, Apple’s market share has begun to slip in western countries due to more affordable competitor models and the advances of Android-based phones in the past year.

According to Phil W. Schiller, senior vice president of worldwide marketing at Apple, the company will not turn to cheaper materials to produce a lower-priced model, despite rumors that plastic will replace the high-quality glass and anodized aluminum. The experience is expected to be better compared to Android devices.

If the rumors are true, around 20 million plastic iPhones will ship by the end of the year.

Big Package for Small Enterprises

64% of small scale owners said they feel the workforce mobility is getting increasingly important, so this price reduction could be a huge blessing to them and could help Apple gain market share with business users.

By allowing small businesses to access everything at the office, respond quickly to customers, and close deals on the go, mobile devices help them be more productive and efficient.

Furthermore, a survey of 1,000 small businesses indicated that 98% use some form of wireless technology, and 66% said it would be a major challenge to survive without it. A mobile-friendly app or website has become a fundamental element for developing a brand, nurturing a customer base, and fostering customer connections.

To date, Apple has sold more than 192.6 million iPhones, and reducing the price even further will put more smartphone devices into the hands of business professionals and everyday consumers.

Small Business Smartphone Impact

Small businesses can improve their productivity by using smart phones as an extension of their office by:

• Allowing employees freedom to stay productive while away from the office
• Enabling seamless integration between the field and office
• Eliminating potential bottlenecks of communication between departments

A Google study found that 48% of smartphone users believe a company isn’t concerned about gaining business if its site doesn’t perform well on their phone. Furthermore:

• 67% mobile users say they are more inclined to make a purchase if a site is mobile-friendly
• 74% people say that they are more likely to return to a mobile-friendly site in the future

More and more people are turning to smartphones as their prices drop and their popularity grows.

Because 58% of smart phones are used for work, staying connected is crucial to beat the competition.

Because consumers check a business’s reputation online before anything else, AMI-Partners predict that small businesses in the US will spend $375 million on going mobile. Google has also declared that businesses without mobile-friendly websites or apps won’t rank well in their search engine results.

The jury is out: it’s high time to go mobile.