EXCLUSIVE: Apple is planning to offer a free iPhone5, with their new iPad as part of one data/product bundle a senior phone carrier executive has told SmartHouse. The new deal which will be marketed as a free iPhone5 is designed to “stump” demand for Android devices.
The marketing strategy which has been outlined to an Australian phone carrier will see consumers offered a phone and a tablet on one packaged deal just before the peak Xmas New Year trading period.
“Apple is lowering the cost of both their iPhone and iPad in an effort to blunt the launch of several Android iPads and Smartphone. The savings have been gained through the lowering of manufacturing costs” the executive said.
“People have been sworn to secrecy. You will also see in coming days that the price of an iPad and current model phone is set to be dropped as Apple and carriers try to move existing stock in the channel before they launch their new iPhone and iPad latewr this year” they said.
It’s expected that the offer will be launched in the second half of the year after both new iPhone and iPad have been launched the executive said.
The pricing of the deal will see consumers offered the oppertunity of buying the two Apple products, up to 25% under what they could buy the two products for separately.
A senior executive at a major US phone Company when asked about the rumour said “We have heard the same rumour coming out a carrier. It appears to be a strategy that Apple are considering as a means to compete. It would be a pretty strong offer”.
Last week several publications including the New York Times and the Wall Street Journal were tipping a cheap new “smaller” iPhone as a means by which Apple will compete up against an onslaught of new Android based devices.
Last week saw the Wall Street Journal claim that Apple will be delivering a smaller iPhone which would cost below $200 in order to compete with budget Android handsets. Then the New York Times claimed that it won’t be making a smaller device but it will be making a cheaper one.
An Apple manufacturing partner in Asia said today “This makes senses as Apple has placed a lot of pressure on manufacturing partners to lower costs. To bundle both products in one deal and still have a good margin allows them to control supply. There is already a lot of concern that there will be component supply problems for tablets as Apple has already started to corner the market for things like display screens, memory and various other components”.
She added “If Apple can put pressure on the manufacturing supply chain while also growing markets share with deals like a free iPhone then they will hurt their competitors”.
