Munster: Apple to bring $199 unlocked Apple iPhone in Q3

Munster: Apple to bring $199 unlocked Apple iPhone in Q3
Piper Jaffray analyst Gene Munster told clients in a research note on Wednesday that an unlocked, $199 Apple iPhone will be launched in the third quarter of this year. Munster forecasts that Apple will sell 37 million of the low priced handsets in 2013, rising to 96 million next year with 170 million getting rung up in 2015. Despite the lower profit margin on the device, the analyst sees Apple increasing its gross profit as it enters a low-cost handset market believed to be as large as $135 billion this year.

But the analyst took a look at the price of handsets in Germany, the U.K., France, China, Brazil and India and discovered that the lowest priced Apple handset, the Apple iPhone 4, is priced 133% higher than the average low cost model in those six markets, which means that right now Apple is currently serving the top of the low-end market. The Apple iPhone 4S is priced at 48% more than the average mid-range phone and the Apple iPhone 5 has a 19% premium to the average high-end unit. That means that Apple currently does not really have a price competitive phone in the low-end, which is where the new model to launch in Q3 will lie.

In emerging markets like China and India, the average low-end handset runs $138 and $140 respectively, according to Munster. The Apple iPhone 4 is priced about 265% higher than the average low priced model in those countries, meaning that for Apple to compete in those markets, it needs to offer a cheaper phone.

source: AppleInsider

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35 Comments

1. menny07

Posts: 89; Member since: Dec 13, 2012

The quality must be terrible if the price is correct. iPhone 3G anyone?

4. MC1123

Posts: 1256; Member since: Nov 12, 2012

my friend has an iphone 3GS and its really a terrible one!! its not good for today's standard! so slow! i prefer N8 with symbian 3 on it than iPhone 3GS if using it today!! and beside N8's camera is still superior!! i heard that it just trash HTC one!

18. loyals

Posts: 129; Member since: Nov 10, 2012

if it is iphone 4 ,apple will change game...but it wouldnt be iphone 4 as the margin would be very lesser for apple !!

35. hepresearch unregistered

What if I didn't really care all that much about "today's standard"?

7. suyatisuyaminggat

Posts: 3; Member since: Feb 20, 2013

There were so many analyst lost their money in 700$$$ apple share and trying to raise the apple share price with fake news. Lol The real apple problem for the mid-low market were these people don't have credit card. And iTunes required credit card compared to android carrier billing. american can't never understand This real issue

22. Ameliahunter

Posts: 26; Member since: Jan 15, 2013

I also thought that the quality should be terrible... Will anyone really buy this phone? Those who don't have enough money to buy expensive devices usually buy cheap Android phones, right?

28. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

This is a public service announcement brought to you in part by Piper Jaffray. The views and events expressed here are totally *fudged and are not necessarily the views of anyone. However, the events and suggestions that appear on this article are not to be taken lightly. Children should not partake in the reading of this article with laces in their shoes. PA is not responsible for your actions. Upon signing in to this site you have agreed not to try this at home. [In the background] Any thing else? Yeah don't do Apples

2. gallitoking

Posts: 4721; Member since: May 17, 2011

i will take an iphone 3G but with the A7 chip.. use the parts for those phone and put in the new hardware... it could happen

3. menny07

Posts: 89; Member since: Dec 13, 2012

But what about display :'(

6. phil2n

Posts: 519; Member since: Apr 30, 2012

And try to imagine they will going to use A7 chip with the price of $199. Your dreaming the same with this analyst. Apple $199 3.2 resistive screen 800 mHz single core 400 x 600 resolution Bluetooth 2.0 wifi b.g.n 2.5g

23. Ameliahunter

Posts: 26; Member since: Jan 15, 2013

Heh, I think the resolution will be something like 400 x 320 :)

33. hepresearch unregistered

Almost everybody here will think I'm crazy for this... but, I have to go with gallito on this one, for once. If they could make an iPhone 3GS-ish device with: 480x320 screen res with capacitive touch (as always before) 3.2 Mpix camera with LED flash and VGA or better video compatible with the newer Lightning adapters and micro-SIMs compatible with the cloud-based services, like iCloud and Siri 8 or 16 GB of internal memory, 1 GB of RAM runs iOS 7 on an A6 chip... they don't even need an A7 to do this job First of all... it would be a smart move. All sorts of folks who couldn't afford an iPhone before will have a better chance of getting one. Apple could really begin to enter some emerging markets competitively, for once. Second, I could care less about super-star specs. I've never needed a camera over 3.2 Mpixels, and family videos above VGA quality just take up too much space on a hard drive to be useful to me. An A6 chip would do the job... yes, iOS 9 would kill the thing, but that would still give you two years (normal upgrade life cycle in the US) of normal behavior on the thing, and if it really works as well as any other iPhone, software-wise, for those two years, then I'd gladly throw down $200 just to try one. As long as they didn't afflict it with the GSM/HSPA iPhone 4 antenna, I'd probably be alright with it. I'm at a point in my life where I wouldn't mind the simplicity of iOS, and I might not even miss the functionality of other smartphones which do more stuff. For $200, when I can finally scrape that much together, I'd be interested. I finally got a job, thank goodness, so that could now actually happen at some point.

5. urtard

Posts: 82; Member since: Jan 30, 2013

The newest iPod touch costs from $299, so I doubt this.

9. BadAssAbe

Posts: 507; Member since: Apr 22, 2011

The iPhone 5 is only worth $200! LOL Slaps random iFan Trololololll JK But seriously the iPhone5 specs are on par with low end Android phones, only thing saving them is their simple OS. Very Small nonHD Screen Dual core processor 8mp Camera Almost as good as the SGS2

10. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Please show me a low end android phone that beats the iPhone5's benchmarks and battery life.

24. Ameliahunter

Posts: 26; Member since: Jan 15, 2013

Low-end Android phones can't beat the iPhone 5, but they'll definitely beat this low-end iPhone.

11. nikenturd unregistered

Expect a crippled Mediatek- caliber cpu and a 512 mb RAM with 4 gigs storage space....theyd also slap a wvga low res screen and a non corning surface...since when Apple created a bang for the buck gadget? EVERYTHING will be skimped , making the $200 price tag rather ludicrous... typical Apple

13. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Ever heard of the Samsung Galaxy SIII mini? How do you feel about its specs and price?

17. rusticguy

Posts: 2828; Member since: Aug 11, 2012

or Micromax A116 :)

12. InspectorGadget80 unregistered

haha yeah right a 200$ iphone please. Just buy a android phones ranges from 200-600$

14. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

Specs would be something like this; 3.5" 320x480 display Single core A4 processor, 800 MHz 512 MB of RAM 3 MP camera, no FFC So basically, a 3GS with a slight bump in processor and RAM. And only the 8 GB version would be $200, you would add $100 every time you doubled the memory and it would go up to 32 GB. Meanwhile, for $300, you could grab an unlocked 8 GB Nexus 4, or drop another $50 and get the 16 GB model.

15. darkkjedii

Posts: 30960; Member since: Feb 05, 2011

I guess you work for apple huh, or maybe you're just the typical loud mouth android fan... Well not maybe.

20. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

It's really just common sense. Even the iPhone 4, which is almost 3 years old, still goes for over $400 unlocked. Let's be honest, Apple would never make a low-end device. Their low-end device is the iPhone they release 2 years beforehand. But, if they did make a low-end device, it would NEVER be $200 off contract and unlocked, and if it was it would need to have VERY low end specs like I listed. The lowest they would go is $300, for specs somewhere in between the iPhone 4 and 4S. Apple would never give up their premium pricing, even the iPad mini, which is considered cheap for Apple, had nearly double profit margins ($330 to buy, $188 to make). In order for Apple to release a $200 phone off contract, it would have to take less than $130 for them to make it, which would end up in a low spec count. I respect iOS products for what they are; simple and fluid ways to do every day tasks, I don't blindly hate. Just because I like to have more control over my devices doesn't mean I'm a loud mouth. Though I might not agree with all of Apple's legal actions, and I think their latest software patches did more harm than good, they make solid products. I'm a realist, and in reality, Apple would never release a cheap device with a moderate spec sheet.

29. darkkjedii

Posts: 30960; Member since: Feb 05, 2011

Now that post makes sense. I'm just shocked to hear u speak non anti apple

32. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

I have never really been "anti-Apple". I don't like all the legal actions Apple takes, and I think the fact that their software updates brought more issues than it fixes is ridiculous, but I've always thought Apple products were alright overall. I still think other OSes (more specifically Android and BB10) have more to offer than iOS, and I wouldn't use an iOS device as my own personal device, but I wouldn't say iOS products are bad. Overpriced; unlocked yes, on contract no. Overrated, kind of. Bad, no.

16. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

Does not make sense. Apple would rather release a $200 crap phone than a $650 5" phone that people would gobble up?

19. Mr..J

Posts: 17; Member since: Feb 01, 2013

evryone says Indians are poor but sells products way higher compared to other countries iphone4-8GB-500$ iphone4S-16-600$ iphone5-32Gb-above 1000$ Htc DNA-16gb-885$. Lol the basic model of apple ipad mini costs 450$. Ipod touch5 32GB-$380 And the nexus7 16GB costs 330$ nexus10 16GB-630$

21. nikenturd unregistered

No....Indians are generally cheapskates...i dont mean to offend but this is the truth

25. rusticguy

Posts: 2828; Member since: Aug 11, 2012

From your living room yes it does seem the way you think.

26. omarr

Posts: 149; Member since: Sep 15, 2012

Sorry apple , for 199$ I can get a nexus 7

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