Why a cheaper iPhone model makes economic sense; next-gen iPhone, budget model may both sport 4-inch screens

“The iPhone 5 hasn’t even been out for a full four months and the iPhone rumors are already rolling in at full throttle,” Yoni Heisler writes for Network World. “But lately, the word from the rumor mill hasn’t been focused on the iPhone 5S or the like, but rather on reports that Apple may release a lower-priced iPhone to make inroads in emerging markets.”

“Initially, I was inclined to take these reports with a grain of salt. After all, rumors of a cheaper iPhone model have been permeating through the blogosphere for years now. But then I came across a tweet from Jeremy Horwitz of iLounge, a man with nearly unmatched credentials when it comes to Apple rumors and news. Indeed, I can say quite confidently that no site/person has been more accurate in such a regard than Horwitz has been over the past few years,” Heisler writes. “That said, Horwitz tweeted the following on Tuesday: ‘What we heard (still early) re: new budget iPhone model – not a ‘larger’ 5-inch screen, but rather unified 4-inch screens for 5S/5/new budget model.'”

Heisler writes, “And the more I thought about it, the more the economic calculus started to make sense.”

Read more in the full article here.

Related articles:
Low cost iPhone? Apple has no problem cannibalizing its own business, typically with good results – January 9, 2013
Cheaper iPhone could boost Apple’s market share but ding margins – January 9, 2013
Gene Munster: 60-70% chance Apple debuts $199 iPhone for emerging markets – January 9, 2013
Bloomberg: Apple developing cheaper, smaller iPhone for 2013 holiday release – January 9, 2013
WSJ: Apple prepping less-expensive iPhone – January 8, 2013
Apple to launch low-cost iPhone with 5-inch display for emerging markets in 2H13, sources say – January 8, 2013
Barclays: Cheaper iPhone for emerging markets ‘key’ for Apple – December 4, 2012

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