Analysts: Low-cost Apple iPhone to be powered by Qualcomm Snapdragon processor

Analysts: Low-cost Apple iPhone to be powered by Qualcomm Snapdragon processor
Analysts at investment house Detwiler Fenton are doing their checks with suppliers and have found that Apple is working on a new product for the low end of the market that uses a Qualcomm Snapdragon processor. Detwiler Fenton's note to clients says that if this product is a low-cost version of the Apple iPhone, it would make sense for the gang at Cupertino to look to differentiate the premium version of its smartphone by not letting the lower priced model offer the same quality graphics, video and processing power that would be available on the higher priced model. In addition, using the Qualcomm processor could help Apple keep gross margins at a decent level. We know what can happen to Apple if margins contract.

Apple could save money by integrating three chips used in the current Apple iPhone 5 (Qualcomm modem, application processor and the Broadcom WiFi/Bluetooth chip) into one single chip which would save Apple some money. When dealing with a low-cost model, every penny saved in procuring parts adds up on the bottom line.

For Qualcomm, the use of a Snapdragon processor for a cheaper iPhone variant would be a big win for the company considering that its contribution to Apple's iconic smartphone has been limited to parts for the modem. The investment house says that an integrated chip for a low-cost Apple iPhone could mean $15 per unit into Qualcomm's coffers. That might considered found money by the chip maker considering that most Android and Windows Phone models are powered by a Qualcomm Snapdragon processor.

source: Forbes

FEATURED VIDEO

55 Comments

1. rusticguy

Posts: 2828; Member since: Aug 11, 2012

What will it be called? iPhone AL-ZEBRA :)

3. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

That's just down right mean and unnecessary!

46. Nadr1212

Posts: 741; Member since: Sep 22, 2012

I am sooo (not) looking forward for this "low-cost" iphone

54. dan86

Posts: 298; Member since: Mar 17, 2012

By today's standard iPhone 5 seems a mid-ranger, I wonder where this so called low end low cost iPhone will take us? 90's? And ya it would come with resolutionary, revolutionary and all those charming words!

14. SonyFan

Posts: 22; Member since: Jan 22, 2013

iPhone mini ;-) or iPhone 4- or iPhone S

20. apexKBC

Posts: 92; Member since: Dec 10, 2012

Who will buy mini iphone, or what so ever There r many smartphones out there for lower price. of Samy,Sony,HTC, Lg, & many other. fools will buy dis one firstly s3 mini and now dis one. just copy cat..........

41. AppLE.R0yally.

Posts: 6; Member since: Jan 25, 2013

IPhone Royally™ We like that™

53. MONUQ

Posts: 31; Member since: Jan 26, 2013

and it will still be premium...i we compare to budget phones prices....

2. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

I'm confused....... how will this "low-end" Iphone be any different from their current flagships: Iphones 4S and 5, respectively???

5. ZetanAlaz

Posts: 14; Member since: Apr 05, 2012

Ah, processor!

11. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

So......?????? Are they using all the chips left-over from iPhone 3G?

7. Whateverman

Posts: 3295; Member since: May 17, 2009

That's what I was trying to figure out, where would it fall performance wise. I can't see people wanting anything less than the performance they may see on an ip4 or 4S. So will these chips be as good or better than the A5 or A6? (Forgive me if the chip numbers are wrong, but you get what I'm saying)

50. remixfa

Posts: 14605; Member since: Dec 19, 2008

It said snapdragon, not krait. More than likely your looking at a dual core krait at best, most likely a dual core snapdragon at worst.

51. Whateverman

Posts: 3295; Member since: May 17, 2009

Oh yeah, duh! And we all know how you feel about snapdragons, lol! Has that change any with the new crop of processors or do you still feel they are subpar? I know the Octo will be an absolute BEAST, but how you think the 600(or is it the 800?) will compare?

33. faisolbauuz

Posts: 121; Member since: Jan 05, 2013

How about iphone 4 renamed as iphone mini ?im sure many ifans will buying it they dont Care whats inside the phone, they will buying it because apple logo on the back

4. maxis3G unregistered

To apple... W.H.A.T.E.V.E.R.R.R.R.R...

6. ajac09

Posts: 1482; Member since: Sep 30, 2009

here we go again with this rumor lol one day it will be right.. one day

8. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

snakes fly

9. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

I'm not so sure this is the best move for Apple. Might be good for consumers on the lookout for a good deal, but Apple (and with that APPL)? No. Why? Multiple screen sizes, multiple processors, lower-end devices differentiating user experiences... anyone remember when "fragmentation" was a buzzword? It sound like Apple is actively trying to bring it back and apply it to themselves. And, with their long-term marketing showcasing their products as something that "just works" the regular consumer certainly will buy the low end devices for that lil' Apple logo on the back, as they're still expecting them to be backed up by Apple quality. That will be some more profit margin erosion for them. They'll still have a large number of sales and a lot of profit on revenue, but APPL is going to be hit right in the junk. I guess Tim Cook said not to fear cannibalization because, well... he's a cannibal.

10. BadAssAbe

Posts: 507; Member since: Apr 22, 2011

Low end usually means a dual core, small screen, and easily bent/scratch materials iPhone 5 has all three Why not just lower the prices on the iPhone4s? I wouldn't mind getting my mother and father one

13. jsdechavez

Posts: 802; Member since: Jul 20, 2012

lol..and our grandparents..

12. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Any smart phone with a screen of 5 inch and price greater than 13k (roughly $250 inclusive of all taxes) gets unaffordable. This is where Micromax is really dominating the market.

15. champ_vl

Posts: 44; Member since: Aug 31, 2012

I've just about had it with these analysts coming up with their stupid theories and predictions especially about Apple !! For Apple switching to another type of chip maker and architecture doesn't make a lot of sense. Why?? Because all their iPhones ar made on the Cortex ARM (which until recently were provided by Samsung) especially their own custom SoC found on the 4S and 5, and the entire iOS is designed to run on these chips. If you don't have any idea what I'm talking (just like these analysts) then you won't understand what I am saying. But I know I'm right.

26. umadd

Posts: 40; Member since: Jan 25, 2013

Oh, and you think you're better than these analysts? How come you're not an analyst yourself? Want to know why? Because you can't. Because you don't know ANYTHING more than these analysts.

29. champ_vl

Posts: 44; Member since: Aug 31, 2012

Wow nice reply there kid...stay in school and don't do drugs. Oh and...let the grownups do the talking next time.

31. darkkjedii

Posts: 31104; Member since: Feb 05, 2011

Good comeback. U made him look weak by not going ballistic on him.

36. umadd

Posts: 40; Member since: Jan 25, 2013

'comeback'? LOL confirmed for 14 year old.

35. umadd

Posts: 40; Member since: Jan 25, 2013

Guess what? These analysts went to school. Your case however, is questionable. All you do is kick, cry and scream 'OHH THEYRE DUMB THEY DONT EVEN KNOW WHAT THEYRE TALKING ABOUT!'. Try to actually be logical instead of getting butthurt and becoming a keyboard warrior.

42. jroc74

Posts: 6023; Member since: Dec 30, 2010

They are like you said..... theories and predictions Treat them as such and act accordingly. All we can do is guess right along with them.

16. XPERIA-KNIGHT unregistered

you guys really dont get it do you? if apple has roamed this far into "android land" then you can take a WILLLLLLD guess where they are heading next..... hint......hint..........change of UI..............maybe?...... to look more like android.........maybe? meanwhile be on the look out for samsung to look more and more like ios and the iphone....lol

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.