It seems every year someone pipes up with some research done in to why and how Apple should and will release a “cheaper iPhone”. We heard it last year before the 4S launched. We didn’t get one. Instead, Apple kept to its pattern of dropping the storage and cost of the previous generation device as it always has done.
In the States the need for cheaper handset may not seem to make sense, since most people get 2-year plans. With those plans there are iPhones at every pricing level from free to $399, rising in $100 increments. However, across the globe where buying phones outright or on pay-as-you go plans is very popular. In the UK for instance, an iPhone 4 will still cost £319 ($510). Many people will not be able to afford to cough that money up. So, in some instances, releasing a sub £200 phone might make sense. But as we all know, Apple doesn’t design its products with the chief aim of making the right move in the market.
This time around it’s the familiar name of Piper Jaffray analyst, Gene Munster, who states “We believe the delta between smartphone market growth and iPhone growth will push Apple to release a lower priced device despite comments to the contrary.” Yet again, an analyst seeing the thriving low-cost market which Android is completely dominating and assuming Apple is interested.
So, take this rumor with a pinch of salt. In fact, I’m filing it in my drawer hash-tagged “FacePalm”. Analysts frequently get it wrong when it comes to speculation. This is probably no different. I’m happy to be proven wrong.