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Low cost Apple iPhone to cost half the price as the current model?

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Low cost Apple iPhone to cost half the price as the current model?
Investment site ValueWalk has some news about a potential incremental refresh with the Apple iPhone 5S and a low cost version of Apple's iconic smartphone. Citing a pair of investment houses, ValueWalk relays talk about a refreshed version of the Apple iPhone 5 which would come in August, and a low priced version of the Apple iPhone that would be priced at half the cost of the iPhone 5.

A low-cost Apple iPhone is said to have the same form factor as the iPhone 5

A low-cost Apple iPhone is said to have the same form factor as the iPhone 5

Canadian brokerage house Canaccord Genuity sees Apple producing phones for both the high-end and low-end. Based on its analysis of component suppliers, the high-end model should be released in August or in the fourth quarter of this year. Even though the Apple iPhone 5S should be hitting the market with a larger screen and improved hardware, the brokerage house says that Apple will be focusing on software and services to differentiate the Apple iPhone 5S from the current model.

Swiss investment house Credit Suisse has some comments about the low priced Apple iPhone that it expects to see priced at $329 off contract. The firm says that a low priced iPhone could help Apple sustain top and bottom line growth while dealing with the competition from Samsung and other Android manufacturers. Credit Suisse imagines a low-cost Apple iPhone to have 3G connectivity, 8GB of native storage and the same form factor as the iPhone 5. The brokerage house worked out the numbers and figures that a $329 iPhone could grab 40% of the $300-$400 phone market which would add $16 billion and $21 billion to Apple's revenues in 2014 and 2015 respectively. It would also add earnings per share of $3.13 in 2014 and $5.05 in 2015, and those figures include cannibalization of the current iPhone. Margins would be 38% for Apple and while that would be lower than what Apple gets from its current smartphone, it matches the company's current overall profit margin.

source: ValueWalk via BGR

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1. moronman66 posted on 21 Mar 2013, 17:18 14

So they're going to provide service for iPod touches essentially?

23. RaKithAPeiRiZ posted on 21 Mar 2013, 22:34 2

i guess the 4S , when the next iPhone comes will automatically become the free phone on carriers

26. loyals posted on 22 Mar 2013, 00:07

4s is 527$ off the contract now. may be 427$ later....but if its gonna be 329$ , it really is a sweet deal !!

24. stealthd posted on 22 Mar 2013, 00:04

That's just as funny now as it was 6 years ago. Now tell the one about how the iPad's a big iPod touch!

2. PhoneArenaUser posted on 21 Mar 2013, 17:23 26

I'm pretty sure that any cheap Apple phone won't be popular! Because people who loves to show off won't buy cheap phone even if it has Apple logo on it! Why? Because according to this kind of Apple lovers - CHEAP IS NOT COOL!
Other people who loves technologies also won't buy it because I'm pretty sure that cheap Apple phone will be even more boring and outdated than usual iPhone. ;)

5. gallitoking posted on 21 Mar 2013, 17:40 1

wow u seem to know a lot about Apple... since u hated.. I hardly see you talk about your OS of choice.. why is that.. dont mean to troll just curious

6. PhoneArenaUser posted on 21 Mar 2013, 17:43 13

It is just my forecast about low cost Apple's phone. :)

11. gallitoking posted on 21 Mar 2013, 18:29 1

cool thanks

31. anywherehome posted on 22 Mar 2013, 02:21 2

I'm not sure... I'm worried that people are so brainwashed by r*tten Apple that they think iPhone is the only smartphone in the world so they will buy it: "Oh, cheap iPhone, great! Finally I have a smartphone."

and no wonder it can not even copy a file and is 10 years behind Android

very very sad

9. GadgetsMcGoo posted on 21 Mar 2013, 18:24 5

People are still buying iphone 4s, iphone 4, iphone 3gs. What will happen is that resale of old iphones will go down significantly.

12. rusticguy posted on 21 Mar 2013, 18:58 1

Naah... ANALysts said 40% of that segment would be grabbed by Apple in no time thinking that people in that segment would also just go after the "LOGO" .... Doesn't need a patent to day dream does it?

29. SlimSoulja86 posted on 22 Mar 2013, 02:01 1

Lets b honest here, we, well let me say, i bought my iPhone cos it makes me feel special cos its not cheap. If they introduce a cheaper iPhone, Samsung here i come, cos now everyone will be carrying it. So no thanks Apple. Its just my opinion.

3. som posted on 21 Mar 2013, 17:27 7

iPhone 4 specs. in iPhone 5 chassis cost $90 to build and sell $330. Today you can buy unlocked Galaxy S3 at $470.

4. _Bone_ posted on 21 Mar 2013, 17:31 6

Just like with the iPad Mini, the iSheeep will go for the cheaper while the rest will go for Android, and Apple loses money.

7. deadstroke posted on 21 Mar 2013, 17:44 9

it call a cheap phone oh sorry affordable phone, still a cheap apple phone lol

8. reyenrique posted on 21 Mar 2013, 17:49 8

wow there is a lot of suckers hehehe ^-^

10. 110410 posted on 21 Mar 2013, 18:25 3

Pretty much sure they're gonna make the specs of this thing so crappy to maximize profits

13. Dingy_cellar_dweller posted on 21 Mar 2013, 19:18 1

This cheap iphone looks like its going to cost less than the profit Apple make on the normal iphone, Apple's huge profits are going to take a hit if they release it.

15. TROLL (limited) 3 days ago posted on 21 Mar 2013, 19:56 1

So it will be hard to differentiate the iP5 to the new iP5 wanabe?

17. kozza3 posted on 21 Mar 2013, 20:08 2

i thought apple was known for "it looks expensive, it sounds expensive, therefor it must be expensive"?

22. uchihakurtz posted on 21 Mar 2013, 21:34 2

Half the price of iPhone 5?? Dude, at that price you can get Xperia SP which looks way better than this candy-toy-look-alike cheap iPhone. CMIIW

27. MartianMe posted on 22 Mar 2013, 00:44

Whatever the price is going to be for this cheaper iphone should be for the regular iphone anyways ..that phone lacks a lot of components that makes a phone a smart phone.

32. BitterTruth (unregistered) posted on 22 Mar 2013, 04:38

Who cares!

34. xperiaDROID (limited) 4 days ago posted on 22 Mar 2013, 07:30

Low cost iPhone will have everything downgraded, that's all.

35. NokiaFTW posted on 22 Mar 2013, 13:46

The Nexus 4 is would be cheaper than that .

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