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Apple fanalyst Gene Munster reiterates prediction of $200 off contract iPhone

Posted: , by Michael H.

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Apple fanalyst Gene Munster reiterates prediction of $200 off contract iPhone
If this feels like deja vu, it's because it has happened before. Back on November 23rd, Apple fanalyst Gene Munster talked about his prediction that Apple would release a $200 off-contract iPhone in 2014, which was already a repetition of the same prediction that Munster made back in August. And today, as if hoping for an association of truth-by-repetition, Munster has reiterated that claim as part of a research note to investors. The only difference between the prediction last month and this one? Munster now makes it just a bit more vague by removing the "when" of the prediction.

The idea behind the prediction is a relatively interesting one: Apple could release a very inexpensive smartphone in order to try to jump on the market segment that the unbelievably inexpensive Nexus 4 is in, or for the iPhone to make a move in emerging markets where ultra-low cost mobile devices are the only way into the market. 

Unfortunately, there are a number of issues with the prediction: First, Apple has never aimed at the ultra-low cost market ever before. Second, Apple already offers older model iPhones at reduced cost if you don't want to spring for the current model. Third, as we pointed out last time, in order to hit that $200 off-contract price, Apple would essentially just re-release the iPhone 3G. And last, Gene Munster is not the most reliable analyst. Not even close really. He is the same analyst who predicted Apple's stock price to top $1,000 by 2014, and as we've seen, Apple is getting farther from that goal every day. 

We love lampooning Mr. Munster's claims, but we're done pushing traffic for him, so we're going to kindly not supply sources for this story. If you're that curious, the originals are just a search away. 

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posted on 17 Dec 2012, 18:03 9

1. wendygarett (unregistered)

Apple will never release the cheap phone, simply because it will cannibalize the iPod touch....

You should know by now that Apple= $$$ Mr fanalyst... FAIL

posted on 17 Dec 2012, 22:18 1

12. cripton805 (Posts: 1485; Member since: 18 Mar 2012)

I disagree... sort of.

It might never be $200 at an Apple store, but stores like Best Buy sometimes offer off contract / prepay phones at really low prices.

The iPhone 4 is already $350 from Virgin mobile.
The 4S is priced at $450

I can see big retailers selling these super cheap in the future.


posted on 17 Dec 2012, 23:48 2

13. Nathan_ingx (Posts: 4321; Member since: 07 Mar 2012)

Unless, Apple goes back to basics and produce a phone alphanumeric keypad...iType. Lol...
Come to think of it, even that might hit $300.

posted on 18 Dec 2012, 00:18

14. wendygarett (unregistered)

I don't think Apple will produce it either lol

posted on 18 Dec 2012, 09:26

15. Nathan_ingx (Posts: 4321; Member since: 07 Mar 2012)

I know that...i'm just having fun!

posted on 17 Dec 2012, 18:05 4

2. Droiddoes (unregistered)

Wild fanboy speculation, LMAO @ analysts. FFS the 3GS was still $599 off contract for a new one when I stopped selling them 2 months ago.
Apple will never offer an iphone for $200. EVER.

posted on 17 Dec 2012, 18:46

5. Zero0 (Posts: 592; Member since: 05 Jul 2012)

Is that true?

That's insane. For the price of a 3 year old phone, one could buy not one, but two brand new flagships off contract.

posted on 17 Dec 2012, 20:22

9. switza93 (Posts: 19; Member since: 26 Nov 2012)

Not flagships, my assumption is that it would be an iphone made with cheap parts and low specs.

posted on 17 Dec 2012, 21:54

11. Zero0 (Posts: 592; Member since: 05 Jul 2012)

This $200 iPhone will likely be pretty bad compared to flagships. Understandable, given the price point.

I was referring to the price of an iPhone 3GS relative to the Nexus 4.

posted on 17 Dec 2012, 18:07 2

3. redmd (Posts: 1368; Member since: 26 Oct 2011)

Apple fanalyst? more like a ship

posted on 17 Dec 2012, 18:46

4. phil2n (Posts: 487; Member since: 30 Apr 2012)

Because he thinks that he is genius by saying that... poor boy

posted on 17 Dec 2012, 18:52 1

6. fanboy1974 (Posts: 1345; Member since: 12 Nov 2011)

Apple does not know how to make a $200 phone. They do but they don't want to sale it for $200.

posted on 17 Dec 2012, 18:55 4

7. jphillips63 (Posts: 245; Member since: 04 Jan 2012)

And the iPhone is what now? Just a freaking iPod touch with a lte radio in it. Apple has really brain washed its followers with minuscule updates as they call revolutionary.

posted on 17 Dec 2012, 19:12 1

8. downphoenix (Posts: 3165; Member since: 19 Jun 2010)

cheapest they'll do is 300$, and it will be at least 1 gen behind whatever Ipod Touch there is. So assuming we'll have 6th gen Ipod touch based on 2012 (since apple skipped a year from touch 4 to 5) Iphone 5 tech, the 300$ prepaid will be an Iphone 4s but with LTE (MAYBE), a generation of tech behind the Nexus 4 that is being sold for 300$ and probably 3 generations behind whatever Nexus phone we'll have in 2014 for $250-300.

Namely because Apple wont sacrifice its profit margins.

posted on 17 Dec 2012, 20:23

10. crankyd00d (Posts: 191; Member since: 17 Oct 2011)


posted on 18 Dec 2012, 11:08

16. InspectorGadget80 (unregistered)

I think this guy is smoking too much. 200$ off contract is he serious?

posted on 18 Dec 2012, 11:27

17. timtimity (Posts: 196; Member since: 13 Aug 2012)

I'm not pro or anti Apple (I've got an iPhone but am planning on getting either an S3 or Xperia T at the end of the month), but I can't see it happening as there's no reason for Apple to do so.

It's the fans who dictate Apple's prices. As long as they're in their millions buying Apple products at excessive prices on day one and over the launch weekend for any new product there's no reason for them to sell a lower cost device.

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