Rumors about low cost iPhones re-emerge

[RaduTyrsina]

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A new rumor regarding the iPhone 5 has emerged once more. Apparently, countries that don’t provide subsidies for the fifth generation iPhone, particularly emerging markets – might get a lower cost version of the iconic smartphone. This theory makes a lot of sense since low cost Android devices in such countries exist already and their price tags are no match for the iPhone.

Now, Barclays analyst Ben A.Reitzes tried to fundament the theory in a note he wrote to investors this week: "We recognize that a key test of Apple's long-term model will be whether the company can capture the growth associated with a new wave of emerging market consumers who could enter the smartphone market through low priced Android devices.”

The device described by Reitzes would be made of materials that would cost up to $150 and would be sold with no carrier plan attached to it, or featuring a much lower subsidy. Reitzes believes Apple is beginning to think long and hard about the issue related to untapped markets. He explains this might be one of the reasons Cupertino decided to design and build the iPad mini in the first place.

In time, we will find out whether or not the analyst was right but it is known that Apple doesn’t approach the design process by starting off with a question like “which market has been left untapped?”. Instead, the development evolution revolves around ways to improve the product. The price and the markets where they supposed to be launched are considered at a much later time, when the devices are in a prototype state. So it might be a mistake to consider that Apple abides by marketing logic.

Source: AppleInsider

 

[thewitt]

Highly unlikely. Apple doesn't target the low end.