The iPhone 3GS silently slipped into the history books amid the iPhone 5 hoopla created by Apple. With the entry of the California based technology giants latest device, the older version of the iPhone will stop production and will be replaced by the iPhone 4 as the oldest supported device and the entry level phone for the manufacturer. Charlie Wolf of the investment banking and asset management firm, Needham & Company, has stated that Apple may launch an inexpensive version of the iPhone to sell in developing markets. According to Apple Insider, Wolf does not think Apple will take this step in the near future but should consider it.
Wolf has given the reasoning behind his statement by stating that prepaid markets around the world are now growing faster than postpaid markets. He claims that such markets represent a force within the smartphone market that cannot be ignored. Considering that developing nations have competitors offering unlocked phones at $150 a pop, Apple would have to release something that could realistically compete on price. Wolf goes on to say that Apple could have hedged its bets by keeping the iPhone 3GS available at competitive prices, perhaps the best case scenario for both Apple and consumers.
Wolf further backs up his claims by pointing at recent data that showed that China had leapfrogged the U.S. and become the world’s largest smartphone market. He goes on to explain that a majority of Chinese mobile users are prepaid and Apple has “little choice but to target prepaid markets in emerging regions.”
Before the iPhone 3GS was taken off shelves it was free with a two year contract. It is now replaced by the much higher priced iPhone 4 which comes at $450 without a contract. Wolf believes that this is not a good price for an entry level smartphone and Apple will need to add more carriers if it wishes to make inroads into more markets around the world.
Source: iPhone In Canada
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