iPhone Nano: The Recession Proof Smart Phone

This week's guest blog comes from Buzz Builder, Caitlin Mahserjian. Caitlin discusses the rumors behind the infamous iPhone Nano. Is it a myth or a reality? Although it’s still a rumor, the buzz surrounding the supposed release of the iPhone Nano is unavoidable. Whether you’re using Apple, Android, HTC, Palm or iTouch you probably know the broad capabilities that every smart phone has. An estimated 23.5% of smartphone holders are currently using Android, which means heavy competition for Apple. Could the iPhone Nano be Apple’s response to Android? We’ll see!

The buzz around the iPhone Nano isn’t brand new. The phone is being generated by Apple as a smaller and less expensive version of the already super popular iPhone. The iPhone Nano is planned to be a mass-market item; easily available to everyone, especially those on a tighter budget. Speculation that Apple could be creating a cheaper alternative to the iPhone has been circling since early 2008. Of course each time the rumor surfaces again, we hear that all too familiar run around: “It’ll be expected by Christmas” or “Next month”. So, who really knows when or if the phone will be introduced to this ever growing smart phone market? Recently articles have been stating that the iPhone Nano will be released along with the iPhone 5, but that’s a whole other rumor in itself isn’t it? AT&T has yet to set a release date for the iPhone5, but maybe we should be looking out for a double release date after all.

The idea with this phone isn’t to help boost AT&T or Verizon’s sales; - we’re all sick of that battle anyway. The goal is to diversify the client base which Apple supplies. They obviously want to appeal to a cheaper market. Just because so many people have the iPhone doesn’t make it a cheap commodity. The iPhone4 is starting at $199 and these days that amount of money isn’t as easy to come by as it used to be. Back in 2008 when the gossip first aired, the phone was going to supposedly be sold for $300. However the recent word is that the iPhone Nano will hit the market at about $200, but here’s the catch: no contract. No contract will allow the users to pick and choose between different carriers. Providing options gives customers a chance to peruse prices and choose the best fit for themselves.

So how is Apple going to afford to sell the iPhone Nano for only $200 when it’s rumored that they sell each iPhone to AT&T for over $600 per phone? Obviously the company will have to cut some corners in order to sell the new phone for cheaper. First, the size; iPhone Nano is going to supposedly be one-third the size of the current iPhone… hence “Nano”. The size doesn’t affect the cost as much as the memory does, which is where we’ll see the real difference. On the regular iPhone’s, the memory is about 25% of the cost of the entire phone. The iPhone Nano will have virtually NO memory. This obviously brings up some very important questions. How will we save pictures and videos (assuming that the device has a camera)? Also, how will there be any system data without a memory? Skeptics are raising these questions, wondering how Apple is going to pull off such a recession-proof phone without any of the internal necessities required in this smart phone era.

What do you think about the rumors circulating the iPhone Nano? Do you think it is a myth or a reality? Share your thoughts in the comments!