If you want a shortened version of this report, it goes pretty much the same way as all the other times a cheaper iPhone has been mentioned. “Analyst says Apple needs to release a cheap iPhone to compete with low-end Android phones, particularly in China.” It’s pretty much all you need to know, but, just in case you need more info, read on.

One of Barclays’ analysts has stated why Apple must develop a low cost device for the budget end of the market, possibly being offered subsidy-free/contract-free.

Report from AppleInsider:

“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,” analyst Ben A. Reitzes wrote in a note to investors on Wednesday.

“In our opinion, Apple can benefit from those upgrading to higher end smart phones later on but the company also needs to make sure it can ‘hook’ customers into the Apple ecosystem early enough in the upgrade cycle to prevent more customers from developing loyalty to Android.”

The biggest, and most frightening problem with the analyst’s predictions is that they’re always made based on marketing logic. When Apple’s design team dreams up a new product, they don’t start with “where can we dominate the market?” They start with “how can we make a better product.” It’s always been Apple’s line, and it’s why the products – generally speaking – are generally always great. Pricing and marketing generally doesn’t make it in to design room discussion until after the device has been engineered and prototyped.

Apple has done it before. Yes. But, the Shuffle and Nano weren’t born from an attitude of wanting to dominate the MP3 player market. They were “wouldn’t this be cool?” ideas. That resulted in the domination of the MP3 player market. The iPad mini was designed based on the fact that Apple could create as great an experience on a smaller form factor as you’d get on the big iPad. So, note to “analysts”, just because something makes financial sense doesn’t mean Apple will do it.

As you can probably tell, I’m not going along with this rumor. Not until I see leaked parts that is.

Via: AppleInsider