Apple is expected to launch a low-cost iPhone later this year, probably in order to compete with cheaper Android-based smartphones that retail without a contract subsidy. This move will allow Apple to compete in a new market segment it currently does not address.
The rumors regarding Apple’s new cheaper iPhone came also with a great number of worries in the marketplace. There have been many statements emphasizing that a low-end iPhone would hurt Apple’s famously high gross margins.
However, not only that many analysts believe Apple will sell this product sooner rather than later, but as Morgan Stanley analyst Katy Huberty affirms, a low-cost iPhone, might actually help, not hurt, Apple’s margins, being able to drive even more people into the Apple ecosystem.
Although Apple has announced no official plans for a cheaper iPhone, the company has been rumored to be creating a low-cost iPhone to integrate into emerging markets. After a great number of reports and analyst predictions, a photo, which appears to be a new Apple device, appeared online.
The pictures, which were posted to Chinese microblogging site Sina Weibo and were highlighted by Apple. Pro, show a rear panel that appears to be thicker than that of the iPhone 5, having a curved back, almost identical with the one of the iPhone 3G and iPhone 3GS.
The device seems to be made of plastic, and there is one photo that shows a Lightning connector inserted into the bottom of the case. The color of the device is black, although there have been other rumors suggesting that Apple will not create a black low-cost device, preferring to offer only its high-end iPhone models in this color.
As there are so many rumors regarding Apple’s plans, it is extremely difficult to know what to believe as far as a cheaper iPhone is concerned. Therefore, at this point, nobody can say for sure whether the new pictures are real or not and what a cheaper iPhone would have to offer.
However, considering the great number of rumors regarding this budget iPhone from all kinds of sources, there is a big possibility for Apple to be working on it, and maybe the company will offer more information next week during Apple’s WWDC conference.