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

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.

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

Related phones

iPhone 5
  • Display 4.0" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A6, Dual-core, 1300 MHz
  • Storage 64 GB
  • Battery 1440 mAh(8h 3G talk time)
iPhone 5s
  • Display 4.0" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A7, Dual-core, 1300 MHz
  • Storage 64 GB
  • Battery 1570 mAh(10h 3G talk time)



1. moronman66

Posts: 162; Member since: Jan 09, 2012

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

23. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

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

26. loyals

Posts: 129; Member since: Nov 10, 2012

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 unregistered

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

Posts: 5498; Member since: Aug 05, 2011

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

Posts: 4721; Member since: May 17, 2011

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

Posts: 5498; Member since: Aug 05, 2011

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

11. gallitoking

Posts: 4721; Member since: May 17, 2011

cool thanks

31. anywherehome

Posts: 971; Member since: Dec 13, 2011

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

Posts: 168; Member since: Mar 15, 2013

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

Posts: 2828; Member since: Aug 11, 2012

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

Posts: 660; Member since: Nov 03, 2011

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

Posts: 768; Member since: Nov 10, 2009

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_

Posts: 2155; Member since: Oct 29, 2012

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

Posts: 113; Member since: Jan 22, 2013

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

8. reyenrique

Posts: 99; Member since: Oct 07, 2012

wow there is a lot of suckers hehehe ^-^

10. 110410

Posts: 23; Member since: Feb 26, 2013

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

13. Dingy_cellar_dweller

Posts: 339; Member since: Mar 16, 2013

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.


Posts: 4851; Member since: Apr 13, 2012

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

17. kozza3

Posts: 778; Member since: Oct 17, 2012

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

22. uchihakurtz

Posts: 427; Member since: Nov 12, 2012

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 unregistered

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

Who cares!

34. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

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

35. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

The Nexus 4 is would be cheaper than that .

* Some comments have been hidden, because they don't meet the discussions rules.

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