There’s going to be more in ’s rumored budget iPhone than just the price

Are you rdy for a brk from the usual hdlines concerning ’s likely introduction of a low-cost iPhone? The perception of low-cost smart as some technological game of limbo between the iPhone maker and Google’s Android is all wrong, says one analyst. Those thinking needs to join the race to the bottom misunderstand that hardware price is not the overriding factor for every consumer shopping for a handset…“The fallacy those who think price is all that matters fall into believing that all consumers value the same thing,”writes Crtive Strategies analystBen Bajarin.For , an entry-level iPhone is not designed to scoop up customers at the very bottom, where price is all-important and likely would never spend much for an app, a or another iOS device.“Worst part is,”writes punditJohn Gruber,“you just know on day one, after it’s announced and it isn’t priced at $99, the usual clowns will say the iPhone 5C is doomed and out of touch because ‘Hey, that’s not c!’”“I don’t expect this phone to be c in any way,” blogger and guitaristJim Dalrymple opines over atThe Loop.Instd, an entry-level iPhone is just that: a way for people to enter the the ecosystem where you buy an inexpensive mid-range phone off-contract, move on to buy a of apps for the device, go on to sign up at iTunes to grab some tunes or s and then hd to the Store to pick up a MacBook or .A gateway drug, indeed.We can’t use the hardware model to judge .For hardware makers, you judge an or by how many PCs are sold. For , the iPhone or iPad are just entry points to an ecosystem comprised of hardware, software and services.The second error made in viewing the need for an inexpensive iPhone is to see the battle between and Google as one where the Internet giant is betting the farm on Android success.But as Bajarin notes, an entry-level iPhone profits Google, as well as .As much as will benefit from getting new customers with an entry-level iPhone that benefits their ecosystem so will Google.We knowGoogle makes more on iOS than Androidand interestingly an entry-level iPhone will likely help Google’s bottom line as well.Echoing our sentiment that we miss the big picture by just chasing unit sales and market share, observerSteve Cheneypoints out that while Android seems to be widening its ld over iOS worldwide, Google’s mobile software may have pked in the US.The introduction of the entry-level iPhone 5C may throw a roadblock into Android elsewhere, where inexpensive smart are fueling and others.For all those who wondered what took so long to get to the inexpensive iPhone id,Rene Ritchit iMore claims had the id for an entry-level iPhone back in 2009 or 2010.However,“the economics and conditions back then made them go with – and stick with – the older-model-at-reduced-price model instd.”In other words, the iPhone 4 and iPhone 4S, which became the entry-level i.In an interesting note, Ritchie sees the iPhone 5C as serving the purpose of the aging iPod touch – to introduce new customers to the ecosystem.iPhone 5C renders viaMartin Hajek.