It's Hard to Bet Against the Apple iPhone

By Don Reisinger  |  Posted 2011-02-14 Print this article Print

5. It could see strong enterprise adoption

The enterprise is still trying to find its way out of the Great Recession. That means the most part, company IT budgets are expected to stay relatively tight in 2011 companies are looking to save cash wherever they can. And considering how expensive full-featured smartphones can be, sticking with current devices rather than upgrading might be a good idea. But the cheaper iPhone might change that. At a reduced price, it might be a worthwhile investment for some companies that want employees to be more productive while on-the-go. It likely won't stack up to the iPhone 4, but in the enterprise, it could see strong adoption.

6. The student revenue could be major

Apple is often thought to be a consumer-facing company. And for the most part, that's true. But the company also has a strong presence in the educational sector and its many products are highly sought-after by students. But let's not forget that some students are on tight budgets. And no matter how badly they might want an iPhone, they still don't have one. A cheaper iPhone might be just what they're looking for. It can still deliver the functionality they want, but it will do so at a price that they're comfortable paying.

7. The iPhone 3GS is still selling well

Apple is already selling a cheaper iPhone. The company currently sells its iPhone 3GS for $99. That's an important element in all of this. Apple has already realized that there is a market for cheaper iPhones out there. And now, with the company offering a new device, it might plan to capitalize on that space in a different way. That strategy could yield major revenue for Apple.

8. It gives Android customers more options

One of the important draws to Google's Android platform is that there are a multitude of device options available to customers. Whether they prefer a specific company's products or they simply want to choose between different form factors that meet their needs, Android products help them achieve that goal. Currently, Apple isn't doing that as well as it could. But with the help of a smaller iPhone, it could show that it wants to give consumers more options and it can alert Android customers to the fact that Apple is getting serious about winning their business.

9. It's hard to bet against Apple

When it's all said and done, it's hard to bet against Apple's decision-making. Over the past decade, the company has delivered one smash hit after another in the mobile space. Save for the iPod Hi-Fi speaker, it's hard to find any major failures. As a result, it's probably not best to bet against the cheaper, smaller iPhone. It might not sell as well as the top-of-the-line iPhone, but given Apple's history, it will likely catch on with customers.

10. Customers respond well to new Apple products

Critics of Apple's possible decision to offer a cheaper, slimmer iPhone should keep in mind that whenever the company offers up new products, they usually appeal to customers. Consumers get excited by Apple products and they jump at the chance to get their hands on them. The same can't be said for most new products that hit the market. But with Apple's track record in mind, it's not a stretch to say that Apple's upcoming release could catch on like canned beer.

Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Since then, he has written extremely popular columns for, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at

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