Rumor: Apple Set To Discontinue iPhone 5 production

With the dust still settling from the iOS 7 and Apple's Q2 announcements, another rumor puts Cupertino back in the news again.

A Korean newspaper has recently reported that Apple allegedly plans to cease all manufacturing of the iPhone 5 this fall, and focus on the yet to be announced, but already leaked iPhone 5S and the rumored multi colored iPhones. If this is true, this marks a departure from the company's long tradition of keeping its previous models on sale after a new model has been announced as a low/mid tier option.

It has been alleged that this is because it would not be cost effective to manufacture the iPhone 5's screen in high numbers. Reportedly the new 5S shares a similar screen to the iPhone 5, with only a small change in the flex connectors. The new device is expected to be launched in the fall along with the low cost plastic iPhone. To recap, the iPhone 5S reportedly features a dual LED flash, the same A6 chip as the iPhone 5, but with a higher clock speed and 2GB of RAM. It may launch alongside other rumored phones, such as Sony's Honami and the Nokia Rivendale

The fall is looking to be a great season for mobile tech fans.

Source: MacRumors | Image via Apple

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They are doing this because and its simple. If Apple is actually making a cheaper iPhone, then they would have to stop making the iPhone 5. Why? Because as a new model comes, Apple must drop the price of the older model. It is likely this new model of iPhone could cost similar to a iPhone 5 with a lower price. If so, why buy a cheap plastic POS, when you can just get an iPhone 5 which likely will have superior hardware. This is why Apple making a cheaper phone sound so stupid. Just lower the cost of the previous model and keep selling it. In fact they could drop the price as low as $400 per iPhone 5 and sell it where they plan to sell this cheap POS.

Apple is banking on the fact of one of 2 things. Either people will hate he cheap model so much, they will simply buy the better model or they are hoping people wont care and just buy it simply because its an iPhone. The latter is likely going to be more true especially in markets where iPhone is consider the top dog.

Either way APple gets paid. But I think Apple is going to get doubles loses. Less people are going to buy an iPhone this time around and they aren't going to buy the cheaper one either like Apple thinks. Apple sold less iPhone 5's than they predicted, this move could mean even less sales.

Everytime I see an image of iOS7 a little part of me dies inside.

We had a good few years didn't we Apple. I will miss you.

Opinion I guess. Personally I feel that the new IOS is what the IPHONE needed. The simplicity, design, and engineering is top notch. Exactly what Android SHOULD have been. Its all about perception really.

iPhone 4 and 4S will be out of market, by the simple fact of screen size. (see what happen with ipod touch of screen 3.5 inches)

they want all products to be 4 inchs at least. so they can offer more features.

The 5S doesn't cost $100 more to build than the 5, and the 5 is definitely good enough for most people, so that's why previous gen phones won't be made anymore.

It's a shame they can't somehow manufacture their ex flagships for cheap enough to be low end. That would be a game changer at the ass end of the phone market.

Why would they stop production? It will still be offered by all carriers at a cheaper price, just like every other last gen model is. Unless they have a deep inventory of these sitting around, but I highly doubt that. They would be losing out on their huge profit margins. It doesn't really make sense over what they claim is a "screen production" issue.

I suppose that's the whole point of a cheaper iPhone, so you have the flagship and budget devices to choose from. There's always eBay or something for the previous iPhones?

lmaobox said,
It does make sense, you are just not getting it or something.

So because of an issue with screen production, they are going to cut the whole product? How exactly does that make sense?

The screen was at most 20% of the total BOM cost. They build it for roughly $200 and sell it for $649 to $849. Not sure if the carriers purchase them for a cheaper price, but it can't be that huge of a difference. But regardless, their profit margins are huge, as is common knowledge. So if the production cost of the screen would even double (which is exaggerated), they would still retain huge profit margins.

So scrap the whole product because profit margins went down slightly? A profit is a profit, and no company would turn away even decreased profit.

The issue I think is that the iPhone 5's design does not scale down well like previous phones have. It is difficult and expensive to manufacture with high tolerances and apparently a lot of phones being rejected by Apple and sent back to the factory.

That's not a good formula for making the new cheap phone by just dropping the price. That's why they are working on the new plastic body version which is basically the screen and guts of the iPhone 5 without the expensive and complicated aluminum and glass enclosure. That becomes the new cheap phone.

Also from a marketing perspective it's better to have a 'new' cheap phone even though it's based on last year's components than to just still be selling the 'old' phone.

Neobond said,
@Astra.Xtreme tell that to the investors

Valid point, but they understand that old products bring in less money. Plus adding an additional product to the line will cause the profits to be even more shared. Cutting out the product all together probably cuts out a lot of potential customers. Some people don't want the newest one for $200 and those same people might not want the cheapo plastic one either. The 5 will become $99 when the 5S comes out, and that's super attractive for a lot of people.

This is good.. Hopefully they have ended it in a enough time.. They had new 3GSs for sale well after the 4S came out lol

I guess if they're making a cheap iPhone, then there's no sense in keeping previous generations for the cheaper model.

Still a bad idea for their brand.

siah1214 said,
I guess if they're making a cheap iPhone, then there's no sense in keeping previous generations for the cheaper model.

Still a bad idea for their brand.

people are not supposed to question apple. what they do is always the best idea.