Low-Cost iPhone Expected to Be Launched This Summer

As stated by Amit Daryanani of RBC Capital Markets when addressing investors, Apple intends to release several new phones, the timeframe being June-July, this year. Besides the fact that Apple is expected to launch the iPhone 5s, it has been said that the company has been preparing for the delivery of a less expensive device.

Regarding the low-cost iPhone, Amit Daryanani asserted that it is anticipated to will the same 4-inch form factor as the iPhone5, the crucial difference being made by the fact that it will have a plastic casing. Another difference that Apple rumored low-cost iPhone is expected to appear with is a represented by the lower gross margins that the iPhone 5 does not have.


An intriguing statement Daryanani has made regarding the future Apple low-cost phone is that it appears to lack a Retina display.  This assertion is in conflict with reports from reliable KGI Securities analyst Ming-Chi Kuo, who has claimed more than once that the economical iPhone’s 4-inch display will be in possession of the same 326 pixels per inch seen on all Retina iPhone displays released to date. Ming-Chi Kuo’s assertions are strongly sustained by the fact that Retina displays are a long-established characteristic of Apple iPhone lineup.

If Daryanani’s predictions are accurate, the lack of a Retina display appears to be confusing due to the fact that Apple will require all applications submitted to the App Store to support that technology as of May 1. Therefore, it seems unusual that the company would then turn around and release a version of the device that lacks it.

In addition, the RBC Capital Markets analyst also declared that, with a lower price-point, AAPL will be able to target a growing and vital part of the Smartphone market (sub-$400 price-band).

Daryanani anticipates that this affordable device would provide another $22 billion in revenue and more than $5 in earnings per share in calendar year 2014, which he estimates would add $50 of value to Apple stock price.

Apple may not have yet confirmed the existence of a low cost iPhone as declared above, Daryanani’s is currently targeting a June or July release for both the iPhone 5S and the lower cost version of the popular handset. Furthermore, the RBC Capital Markets analyst also expects Apple to launch a new iPad mini and full-size iPad this year. Regarding the full-fledged Apple television and the rumored “iWatch”, he asserted that they might be created, but the timing of their first public appearance is not actually clear.

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