Unsurprisingly, the “low cost” iPhone set to be unveiled this year will not cost the bargin price normal low end devices cost and will clock up somewhere in the mid-range market.
We didn’t expect Apple to start dropping the price to incredible rates, with the past thirty years of the company founded on making innovative products at pretty high prices.
When looking at Apple products in the past which have been labelled ‘cheaper than other versions’, like the iPod Nano and iPad Mini, we still see them as pretty expensive.
How much will it cost?
J.P. Morgan analysts Gokul Hariharan and Mark Moskowitz have worked on a report to try and find the sweet spot Apple is trying to hit with this new low cost iPhone.
The new iPhone will likely hit for $350 – 400, without contract, in contrast to the $650 iPhone 5. We believe Apple will strike up deals with carriers to offer the low cost iPhone with low pay-per-month rates.
When the iPad Mini first came out, many speculated it would cannibalise the iPad market, however we are still seeing growth in Apple’s tablet market, assuring us that different types of consumers will choose different iPad models.
The question is what significant differences will the low cost iPhone have compared to the iPhone 5S, to make it worth big spenders purchasing the high-tier smartphone.
Rumours have said the low-cost iPhone will not come with a fingerprint sensor, will have a smaller and lower res screen and will stick to the A5X processor with 1GB of RAM.
When is it coming?
We could be seeing the low cost iPhone as soon as WWDC, if Apple is worried about the market stock price dropping too much. We are expecting one new smartphone to come at WWDC, to fit with the iOS7 upgrade.
The low cost iPhone may wait until October to be released, giving Apple a good amount of time to flog the iPhone 5S.