Low-cost iPhone could launch soon; Apple execs hope to settle patent disputes

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RBC Capital analyst Mike Abramsky recently sat down in a meeting with Apple’s chief financial officer Peter Oppenheimer and chief operating officer Tim Cook to discuss a range of topics, from Apple’s patent battles to the possibility of a budget-priced iPhone. “Apple’s primary criterion for launching a lower-end iPhone is an innovative, category-killer experience,” Abramsky wrote in a recent note to investors. The execs said that the components sector is currently a “buyers market,” which means it has the upper hand when it comes to negotiating for parts. In addition, Abramsky said Apple is interested in settling a number of patent lawsuits against Android phone makers such as Samsung and HTC, in an effort to strike favorable agreements in countries like China that have less firm patent protection. We recently reported exclusively that Apple has plans to launch a $350 contract-free iPhone, which could very well be the iPhone 3GS. Apple is expected to unveil its next-generation iPhone in the coming months for a September or October launch.

45 Comments
  • Anonymous

    Wouldn’t have had to bother settling if you had decided not to file in the first place. Barring that, you could have made one of those smug commercials you’re so good at.

    • http://www.facebook.com/applelover Tim Meesseman

      You make that statement like nobody should ever sue anybody.

      They had the right to sue, they had the need to sue, and they did.

      • Anonymous

        I’m talking about a particular circumstance, and you’ve drawn the conclusion that no one should ever sue anyone. Isn’t that a logical fallacy?

        As to their right: they absolutely had the right. That’s not in question. The need, on the other hand, is something that I can’t agree with. I think they would have been better served talking about how Samsung is taking their sloppy seconds. The most demoralizing thing you can do when dealing with an opponent is to completely dismiss their existence as nigh-irrelevant (BIG WORDS AHOY!!!).

      • http://listeningtoreason.com wanorris

        This is good for Apple, good for Android, and good for the smartphone industry in general.

        Trying to sue HTC out of existence and block Samsung devices at the border — Apple’s apparent original intent — would have been a PR debacle that would have reflected badly on all sides regardless of the outcome.

        Good work, Apple.

    • Anonymous

      You think they mean that they’re abandoning the sue lol, no son it means they’re ready to negotiate. The Magic word is (settling).

      • Anonymous

        Settling or not, I feel like it was a waste of time and resources. I would have rather seen them do… well, anything else with that money. It’s not like they need it. They’re sitting on huge cash reserves and doing fuck-all with it, the same as most large corporations in the U.S.

        I wish no companies would play this patent game. Since I live in Reality World, I have to settle for bitching at whatever companies brings these kinds of ostensible patent suits which really just seem to be shakedowns in disguise.

      • Taco50

        You must work at walmart as a greeter or something. Are you suggesting Apple should give up millions in revenue because they don’t “need” it? That’s not an effective way to run a business.

      • Anonymous

        @5c27306aee7bc6a406fec935e2ae90c9:disqus I believe I’ve repeatedly acknowledged that they have every right to do it. I would expect any corporation to do anything within their power to maximize their profits. I just wish that, as fucked up as the patent system is, everyone wasn’t jumping all over buying all the patents they can get their hands on in order to sue other people. The fact that this is a legitimate business strategy should show just how fucked the situation has become.

        And… ad hominem, though? Really? I know that’s exactly the level of discourse that I expect at BGR, but come on. Totally unnecessary.

    • Anonymous

      Um, when Apple says “settle” they mean reaching a cross-licensing agreement that leads to collection of royalties from Samsung and HTC for use of Apple’s patents, just like HTC pays Microsoft a royalty for its patents.  They are suing to block Samsung and HTC phones from the US market, so collecting royalties means settling for less they what they are asking for.

      And I don’t understand why Apple should not try to protect its intellectual property if it believes that its patents are being violated.  Unlike patent trolls, which neither develop any technology nor try to produce any products, Apple has spent billions on R&D, patenting technology along the way.  Moreover, Apple is competing against software freely given away to Samsung and HTC, and it has a right to ask that these companies either a) not use Apple’s intellectual property or b) pay royalties for it.

      • Anonymous

        Like I said in reponse to keymaker, my issue is more with the fact that all kinds of incredibly vague patents are being granted, meaning that infringing on someone’s patents doesn’t necessarily mean that they’ve created some sort of unique way to do something that never would have occurred to anyone else.

        Like I said: they absolutely have the legal right to protect their IP. I just think the IP system in general is a gigantic clusterfuck and I wish companies would stop taking advantage of it. I mean, His Jobsness himself used to recognize how stupid that shit was. It’s irritating to see him using something that he used to rail against.

        This isn’t to single out Apple; Microsoft has clearly gone neck deep in the same scenario. I just long for a day when this shit is over and done with and the only way you can win is by one-upping the competition. I can’t speak for anyone else, but I’m only team Android because Android lets me do what I want. If the iPhone 5 gave me widgets and LTE and didn’t require me to sync with a computer and let me customize shit out the ass, I’d give it a real close look.

      • Anonymous

        I completely agree on the need for patent reform, but just because the patent system is abused by a bunch of bad actors does not mean Google should simply be able to run rampant with other companies’ intellectual property. You are simply declaring that Apple’s lawsuits are without merit and are equivalent to those of random patent trolls. Sorry, but your opinion on the matter is just that.

        Apple gets sued all the time by patent trolls. They settle these things on a regular basis. They also recently settled with Nokia, which has legit intellectual property. Suing Samsung and HTC is not “taking advantage of the system” — it is simply using the system as it is to defend what they have innovated.

        Eric Schmidt sat on Apple’s board and saw iPhone prototypes, all the while knowing that Google was working on Android. After the iPhone came out, Android shifted from a Blackberry-style UI to one based on touch and started competing directly with Apple. “His Jobness” was furious, and there is no way he would just sit there and take it.

        That’s great that Android works for you. I don’t speak for anyone else either, but the iPhone lets me do what I want. Plenty of customization. Other stuff (no reliance on PC) is coming soon. LTE will come when it is actually ready.

      • LchaucA

        Well said..

  • TIME

    3GS? isnt that already out?

    • IPwn

      Ya but most likely slight upgrades to the internals to insure compatibility with iOS 5 and newer operating systems

      • Anonymous

        Excellent point.

      • shankapotomus

        it will be “Innovative” and Apple will patent the idea of reselling old technology as new

      • IPwn

        Android already does this. They take the same phone bump up the internals and (sometimes) put the newest android OS on there and sell it as a new phone. Innovative? No. A good way for them to say “more market share” look at all these “new” activations

      • Roflmao

        Agreed. 
        Although, everyone underestimates the power of iPhone 3GS. It runs iOS 5 (beta versions) perfectly fine, and you can detect only a slight amount of lag with some apps. Other apps, surprisingly, the 3GS outperforms iPhone 4 (camera for instance). I wouldn’t be surprised if they kept 3GS support all the way to iOS 6 or beyond. 

  • Anonymous

    Same ol’ stuff from another anal-yst

    • IPwn

      Except if you read the article it stats this came from Apple executives. Moron.

    • amolpatil2k

      i agree, the cheaper iphone would simply be an ipod touch with 3g so people can make data calls carrying voice.

  • pir800

    Low-cost iPhone could launch soon; Apple execs hope to settle patent disputes… In other news water is wet.

  • Wirelessmodz

    so here we have another day and another fucking bullshit icrap article , how do the writers of bgr find the time to breath when there on apples cock 24/7

    • Roflmao

      “…when THEY’RE*** on…” 
      #corrections for idiots who don’t know spelling and proper grammar. 

      And second thing, if you don’t like “icrap” articles, then don’t click on them! idiot.

      One last thing… questions end with question marks. Like so: why are you such a moron? 

      • Wirelessmodz

        How about I shovel your englisj class up your asshole hows that for roflmao ?

      • trife

        ROFLMAO!!!!!!!

      • Roflmao

        Haha! I think? If you had used proper punctuation and question marks, I would have a much better idea of what you just said…

        I just looked at your “profile,” and it seems that you have a chronic record of not only bad grammar and spelling, but also historic levels of trolling on BGR. I mean, literally, you have commented on every single iPhone 5 news story on BGR just to say some gay shit about how BGR can’t stop reporting on iPhone 5… all in the worst grammar and spelling. Literally, an eleven year old kid could probably do better.I hope it’s not too personal, but how old are you, and how much of an education do you have? Seriously, stop wasting your time and go clean the bathrooms at McDonald’s or something… but stop wasting your time trolling on iPhone articles done on BGR. 

  • Anonymous

    I know Apple is aiming for markets other than the US regarding a low cost iPhone, but I’ll be paying attention as my kids are starting to ge old enough for a cell phone.

  • Anonymous

    Using an iPhone in public is a great way for individual males to express their homosexuality.  I support them for not conforming to society’s archaic ignorance and hate.  

    • Anonymous

      LOL! Or they could just get an Android and show that they’re closeted homosexuals who hide behind the overtly masculine commercials of OEMs.

      See what I did there?

      • Anonymous

        Unique way of looking at it.  I commend your input.  

        Nevertheless, I support the right of iPhone users to marry.  

  • Anonymous

    If carriers sold this for free on a 2 year contract I could see it doing well.  I can’t imagine a budget minded person is going to be looking for a $350 phone off contract though.  Most of the time people who buy smartphones off contract are the ones that like to upgrade a lot.  They are probably not looking for a mid-range phone.

  • Anonymous

    The low cost iphone is already out. It’s called the 3gs. After the iphone 5 comes out the new low cost iphone will be the iphone 4. Apple will not make a low cost aka androidish garbage phone. It’s not in Apple’s DNA and never will be. 

    • Anonymous

      Ill remind you of your ignorant and condescending remarks in a few months when that low cost iphone hits shelves.

  • AnalyzeThis

    Seriously, would BGR have ANY content were it not for analysts?

    • IPwn

      You do realize this isn’t a “analyst” projection.  It is coming directly from Apple executives.

  • Anonymous

    Apple really is jsut cool liek that. Wow.

  • Anonymous

    Apple really is jsut cool like that. WOw.

    anon-web.us.tc

  • Drew

    “Apple’s primary criterion for launching a lower-end iPhone is an innovative, category-killer experience”. More long-worded mumbo jumbo marketing speak from Apple. WTF does that mean?? Then BGR is saying it might be the 3GS?? FAIL!!

  • Bob

    one day there will be a 24 hour period where BGR doesnt post some obscure apple rumor…..

    • Bringit

      But there will never be a day where AndroidNerds ignore all non-Apple threads – only to bitch and whine in the Apple threads.  

      whaaa whaaa whaaaa.

      • Bringit

        oops left out a key word:

        don’t.

        There will never be a day where AndroidNerds DON’T ignore all non-Apple threads – only to bitch and whine in the Apple threads.  

        whaaa whaaa whaaaa.

  • Max

    Now’s your chance, RIMjobbers. Move into 2012.

  • Anonymous

    Apple is only coming out with lower cost phones cause Android has them. Copycats of the century Apple!!!!

    • Anonymous

      Whine…hate…whinge…hate…moan…hate…whine….

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