Differentiation of Future iPhone Models to be Driven by Software?
Yair Reiner, an analyst at Oppenheimer, recently met with several unnamed Apple executives who, he claimed, said: "[The] iPhone is still in its early days and could gain share by: providing more functionality, lowering prices, growing geographically, or segmenting the market with different models."In seeking clarification about the market segmentation comment, Register Hardware learned from Reiner that "segmentation would focus on software." Register Hardware interprets this comment to mean that Apple is considering offering multiple models of the iPhone that would consist of essentially identical hardware, but have different software packages.
For example, Apple could market one 'YouTube' iPhone model with applications that provide video capture, editing and sharing features. Other iPhones might only offer basic video capture - or perhaps no video at all.
Selling models differentiated by hardware seems unlikely. Different iPhones with very different physical specs could have far-reaching implications for Apple's production methods, volumes and costs.