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Apple may build less expensive iPhone

Apple is trying to decide whether it makes sense to offer a cheaper iPhone as it tries to boost sales in less-affluent countries and reclaim some of the market share lost to cheaper phones running Google's Android software, according to a published report.

Wednesday's report in The Wall Street Journal speculated that Apple could lower the iPhone's price by equipping the device with an exterior that costs less than the aluminum housing on current models.

A cheaper iPhone could come out as early as this year, or the idea could be tabled for future consideration, as has previously happened. Citing unnamed people familiar with the matter, the Journal said Apple began assessing the pros and cons of making a cheaper iPhone in 2009 and has periodically revisited the notion. Apple Inc. declined to comment to The Associated Press.
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 Apple so far has stuck with an approach that has stamped the iPhone as the gold standard, a device that warrants a higher price than other smartphones. Under this tack favored by Apple's late CEO, Steve Jobs, the company sells a premium-priced iPhone that has been updated annually with new features since its 2007 debut.

In an attempt to appeal to more budget-conscious consumers, Apple has been selling older models of the iPhone at discounts before phasing them out.

The latest iPhones start at $199 in the U.S., but those prices are subsidized by wireless carriers, which figure they can make up the costs through monthly service fees over the life of a two-year contract.

The unsubsidized prices start at $649. That is proving to be too much for many people looking to stay connected on the go, prompting them to snap up more affordable smartphones, including Android devices made by Samsung Electronics Co. and others. Google Inc. doesn't charge for the Android mobile operating system, making it easier for device makers to undercut the iPhone. Apple doesn't allow rivals to use the iPhone's iOS operating system at all.

Android devices accounted for 75 per cent of smartphone shipments during the three months ending in September, up from 58 per cent at the same time in 2011, according to the research firm IDC. The iPhone's share stood at 15 per cent in September, up from 14 per cent in the previous year.

Google says more than 500 million Android devices have been activated since the software's release four years ago. By comparison, Apple had sold about 271 million iPhones through last September.

Apple could fall further behind as it focuses more on markets outside the U.S. and Europe. That's because many households in some of the most promising markets, including China, can't afford iPhones at their current prices. Apple CEO Tim Cook, who took over the helm shortly before Jobs died in October 2011, is currently visiting China.

Read more: http://www.ctvnews.ca/sci-tech/apple-may-build-less-expensive-iphone-report-1.1108089#ixzz2HY8TlSOc

App Store Tops 40 Billion Downloads with Almost Half in 2012

CUPERTINO, California―January 7, 2013―Apple® today announced that customers have downloaded over 40 billion apps apple*, with nearly 20 billion in 2012 alone. The App Store℠ has over 500 million active accounts and had a record-breaking December with over two billion downloads during the month. Apple’s incredible developer community has created over 775,000 apps for iPhone®, iPad® and iPod touch® users worldwide, and developers have been paid over seven billion dollars by Apple.

“It has been an incredible year for the iOS developer community,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “Developers have made over seven billion dollars on the App Store, and we continue to invest in providing them with the best ecosystem so they can create the most innovative apps in the world.”

In 2012, the husband and wife team at Imangi Studios saw their game Temple Run downloaded more than 75 million times; Backflip Studios and Supercell, two emerging game development studios, brought in over $100 million combined for their leading freemium titles DragonVale and Clash of Clans; and emerging services including Uber, Flipboard, HotelTonight, and AirBnB attracted millions of users on iOS. Companies including Electronic Arts, Ubisoft, Autodesk, Marvel and Major League Baseball continued to expand their iOS offerings, while developers like JJ Abrams’ Bad Robot Interactive and Bottle Rocket Apps continued to push the boundaries of what iOS apps can do.

“The success of our game Temple Run in 2012 was nothing short of astonishing,” said Keith Shepherd, co-founder of Imangi Studios. “We were simply looking to create a game that was fun and easy to play, but once it hit the App Store, the game took off. This past year, we saw more than 75 million downloads of Temple Run on iOS.”

“Our success on iOS has been incredible,” said Samir Hanna, vice president of Consumer Products for Autodesk. “We set off with the modest goal of bringing SketchBook to iPhone users as a way of introducing them to Autodesk. Fast forward three years, we now offer 20 apps to iOS users that have achieved more than 50 million downloads, and we continue to roll out new creativity and design tools that appeal to both professionals and consumers.”

“The App Store provided us with opportunities beyond our wildest dreams,” said Bad Robot Interactive’s JJ Abrams. “Our app Action Movie FX was designed to bring Hollywood special effects to anyone’s self-made video, whether that be on an iPhone, iPad or iPod touch, and we’re just thrilled that millions of fans around the world were as excited as we were about the possibilities that this app brings.”

“Bottle Rocket Apps now employs over 100 full-time employees, dedicated to nothing but building great apps,” said Calvin Carter, president of Bottle Rocket Apps. “In my 20 plus years in technology, I have never seen such a vibrant marketplace for software like the App Store.”

Apple offers developers a wealth of resources and tools to help them make great apps, plus a robust ecosystem and marketplace which provide customers a safe and easy way to discover them. Apple also provides developers great ways to monetize apps including in-app purchase, subscriptions and advertising, and helps market and support developer efforts in the App Store and beyond.

The revolutionary App Store offers more than 775,000 apps to iPhone, iPad and iPod touch users in 155 countries around the world, with more than 300,000 native iPad apps available. App Store customers can choose from an incredible range of apps in 23 categories, including newspapers and magazines offered in Newsstand, games, business, news, sports, health & fitness and travel.

*40 billion unique downloads excluding re-downloads and updates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.