Are cheaper iPhones without data plans on the way?

By Ian Bell May 19, 2009

Are cheaper iPhones without data plans on the way?

NEW YORK (Reuters) – Speaking at the Reuters Global Technology Summit in New York on Monday, on Monday Sanford C. Bernstein analyst Toni Sacconaghi said he expects Apple in coming weeks to unveil new iPhones that will appeal to more cost-conscious consumers.

"I feel very confident there will be a lower-cost alternative," Sacconaghi said, adding that a cheaper phone would appeal to customers who prefer to pay for calls in advance and not commit to a long-term contract.

Today, prepaid customers pay a lot more at retail for the device than those who sign up for a two-year contact with operators such as AT&T Inc, the exclusive U.S. iPhone carrier.

Customers who commit to pay a minimum $70 a month cellular service fee for two years currently get a significant retail discount for the device.

While the current iPhone is already available to prepaid customers in European countries such as Italy, it is prohibitively expensive there without the carrier discount that monthly bill paying customers enjoy.

Sacconaghi said he expects that in the next year or two, Apple may offer iPhones without requiring customers to sign up for a monthly cellular data plan, which currently costs a minimum of $30 a month for U.S. customers.

"There’s still a lot you can do without wireless data," he said.

The idea would be that customers would use the phone as a music player and a traditional phone, and when they want to surf the web and download applications, they would revert to using Wi-Fi, a short-range wireless technology already in existing iPhones.

Sacconaghi said that a cheaper version of iPhone could help Apple forge a carrier agreement to sell the phone in China, the world’s biggest cell phone market.

An Apple spokeswoman said the company does not comment on speculation about new products and services.

Editors' Recommendations

Publisher

I work with the best people in the world and get paid to play with gadgets. What's not to like?

Mobile

How to transfer photos from an iPhone to a computer

The Apple iPhone 15 Plus's gallery app.

As the old saying goes, the best camera is the one you always have with you. If you're like most iPhone users, that means you've likely amassed a sizeable collection of photos on your device. However, while Apple's Photos app is a great way to manage and view your photo library, it's never a good idea to keep all your eggs in one basket. After all, suffering a lost or broken iPhone is painful enough without also losing all your precious digital memories in the process.

Even if you're backing up your iPhone to iCloud or your computer, it's a good idea to keep your photos backed up separately. After all, opening a folder or a photo management app is a much easier way to get at your photos than trying to extract them from an iCloud or iTunes/Finder backup, which requires either restoring them to another iPhone or relying on special software tools.

Mobile

I can’t wait for Nothing to launch this stunning phone

Nothing Community Edition Project winner.

Say what you will about Nothing, but this brand certainly has a taste for flashy design. After all, how many phones out there light up and sync to the beat of music? But the company's latest smartphone endeavor could just be its best yet.

In March, Nothing introduced its Community Edition Project. The goal was to take ideas from its fans for hardware design, with the Nothing Phone 2a serving as the foundation. The company also has similar plans for wallpaper, packaging, and marketing shenanigans. Today, Nothing announced its winning entry for the phone design, and it’s a stunner.

Mobile

How to schedule a text message on your iPhone

Close-up photo of the Messages app on an iPhone.

Do you often send text messages to a friend or family member across the pond? Or do you want to message someone when you know they’re off work and are able to get to you in a reasonable manner? Maybe you want to send a message every day at the same time, to let your significant other know you’re on the way home and to ask if they need you to pick up anything.

If you said yes to any of these scenarios (or other ones you have in your head), you may be looking for a way to schedule text messages on your iPhone. After all, this is a feature that Android users have, and it can often prove incredibly convenient.