This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A Cheap iPhone Will Get Tim Cook Fired

NEW YORK ( TheStreet) -- I hope I'm as right about this rumored "cheap" iPhone as I was about Apple's (AAPL - Get Report) iPad mini.

When iPad mini was about to hit, most everybody said it was going to be "cheap" and would fail. Wrong on both counts. It's relatively expensive and, as far as we know, a major success.

If Apple entered the $199 space against Google (GOOG) and Amazon.com (AMZN - Get Report), it would have won. The Nexus 7 and Kindle Fire have a tough enough time competing against premium-priced Apple tablets; there would be no contest if Apple went the inexpensive route.

That might sound like an opportunity to you, but it's not. It's an easy short-term answer (to a question we should not be asking) that Apple avoided -- thankfully -- with iPad mini. No low price. No plastic backing. No significant corner cuts. Put an iPad mini side-by-side with an iPad. You'll find there's nary a difference, other than size, between the two products.

With that in mind, Apple absolutely should not extend the strategy to iPhone.

With iPod, Steve Jobs went in various directions on both size and color. Fine. It worked as a one-off to sustain the iPod line. You still see people carrying around and buying Nanos so it's all good.


With iPad, Apple offered another size -- while maintaining a premium price -- but don't expect it to go the multi-color route.

For iPhone, Apple should scale back this somewhat lame cosmetic strategy even further ... to the point of doing nothing.

Tim Cook breaks a long-standing Apple motto if he extends superficial color and size tweaks to iPhone. He capitulates to what consumers allegedly want as opposed to knowing what they want and prescribing it to them. If cheap, multi-sized iPhones hit the market, Apple becomes what Steve Jobs called everybody else -- from Samsung to BlackBerry (BBRY - Get Report) -- a copycat. If you're an Apple fan, the mere thought of doing anything at all because somebody else does it and it "works" for them should scare the living snot out of you.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $123.25 0.00%
AMZN $370.56 0.00%
BBRY $9.46 0.00%
GOOG $548.34 0.00%
FB $83.30 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs