Last month, Apple CEO Tim Cook, affirmed that the Cupertino Company is working on rolling out new products this fall and throughout 2014, emphasizing the fact that the products could be included in “exciting new product categories.”
Even though, it is still unclear exactly what Apple will be releasing in a few months, a large number of analysts predicted that it will launch a cheaper iPhone instead of a larger-sized “phablet” that would compete with Samsung’s Galaxy Note.
Therefore, in accordance with the rumors, Apple is planning to launch a less expensive handset in order to compete in the high side mid-tier smartphone range, trying to push the iPhone into new market segments.
Many analysts believe that Pegatron (which makes many iOS devices for Apple), will be the lead manufacturing partner for a cheaper iPhone. As a confirmation for the analysts’ predications, Apple supplier Pegatron plans to increase its Chinese workforce by up to 40 percent in the second half of 2013, feeding the rumors that Apple is planning the launch of a low-cost iPhone.
There is another factor pointing to Pegatron’s work on the budget iPhone: the falling demand for the iPad Mini, an Apple device they manufacture. As production has slowed, with Apple turning their attention to the next wave of devices, it has led to a decrease in the second quarter revenue
According to the suppliers, Apple is planning to develop a budget iPhone in order to target ascending markets such as China and India.
Analyst Benedict Evans stated that the new Apple phone, which might double unit sales and blow a hole in the middle of the Android market, could only be able to add 5 percent to Apple’s gross profits. However, according to Morgan Stanley analyst Katy Huberty, a cheaper version could add another 20 percent to the 10 percent market share iPhone currently holds in China.
Therefore, as stated above, hiring sprees and income rushes are not unusual ahead of new Apple products, this news giving further credence to the suggestion that Apple will launch a new iPhone soon.
As a Japanese supplier stated, the cheaper handset’s display would begin small-scale production in May, ahead of a ramp up scheduled for June. This model is supposed to be sporting the same 4-inch panel used in the current iPhone 5.