Apple May Release Low-Priced iPhone in 2014

By: Jeff Stewart  |   November 26th, 2012   |   Apple, Business, News, Smartphones

According to long time Apple analyst, Gene Munster, the Cupertino company will launch cheaper iteration of its iconic iPhone device in 2014. This device is believed to be a non-subsidized version of the current iPhone device priced at approximately $200.

 

The California based iPhone maker may be leaning towards the decision as the opportunity to take on rival mobile manufacturers in Asia, particularly those in China and India who manufacture lower priced devices. Network operators in these two countries do not offer iPhone to the customers at unsubsidized prices, offering pay-as-you-go-value policies instead. This leaves the full cost of the hardware on the user, making the device a significant upfront investment.

 

This model means that Chinese and Indian consumers get iPhones at an off-contract price even with a contract in place. Those who call North America home are much more familiar with $199 iPhones made available with 3 year contracts that are put in place for the carrier to recover the cost of the device.

 

Due to the high cost of the iPhone, it has failed to extend its number of customers in both India and China. Apart from the aforementioned, lower average incomes are another factor that has boosted the cheap mobile market in these two countries and kept the the iPhone market share to a minimum.

 

As an example, the current iPhone costs ¥50000 in China, which is not cheap by any means, whereas mobile manufacturers like Samsung have launched numerous cheap mobile handsets in the Chinese market not to mention Chinese hardware manufacturers. As a result of that, 90 percent of the mobile sets in China today are Android based. However, it is still quite uncertain that Apple will produce a cheap iPhone because late Steve Job’s company has never compromised on its cushy profit margins.

 

Source: Financial Post, Tapscape