Analysts expects Apple to debut lower cost iPhone models in June

Blowout Specials ends 2/28“Apple’s next update to the blockbuster iPhone handset is expected by one prominent analyst to have a lower total cost of ownership, and to also include new gesture-based functionality,” Neil Hughes reports for AppleInsider.

“Katy Huberty with Morgan Stanley maintains that the biggest barrier to greater iPhone adoption is the cost of the hardware, followed by the service plan,” Hughes reports. “The investment in the device has been its biggest issue in both developed markets like the U.S. and emerging ones like China.”

Hughes reports, “But Huberty expects Apple to address that in June, by introducing a new model that will be economically friendly to even more consumers. ‘We expect Apple to launch new iPhones in June that offer both a lower total cost of ownership and new functionality, potentially including gesture-based technology,’ she wrote in a new note to investors Friday.”

Read more in the full article here.

20 Comments

  1. Huberty’s still out of it. She just doesn’t understand how Apple works.

    Apple will not introduce new, lower cost hardware. They will introduce new hardware at the current price points. Then, as they almost always do, they will offer the older hardware at reduced prices.

  2. @Big Als MBP

    Actually, it’s not a limerick. Limericks have 5 lines with an AABBA rhyming structure. The Riddler’s poem has has six lines with a rhyming structure AABCCB.

    Most importantly though, I agree with The Riddler about it being better without; although I’ll concede to you the unsafe part and that the poem is naughty.

  3. Shouldn’t the title say “Analysts are looking for another thing to complain about and tell everyone to sell their shares so they can short it to death and then make profit on its way up” ??

  4. @ Bill

    I just visited that particular link and now I feel very very sick, must be the time travel back to the world of 1995 that did it I suspect. Some people just have a need to endlessly fiddle with their technology to improve a genetically bad experience. Hey I have my BSA for that but then I don’t HAVE to work with that beast and it IS fun for when I do decide to give it my time.

  5. What an idiot. The TCO has very little to do with Apple and everything to do with the carrier’s service plans. Come this June, why should I still be paying the same monthly rate for a two year old 3G as I would for the newest 3GSX or whatever? Shouldn’t my monthly rate drop once the subsidy is paid off? Does it really matter if the upfront price is $0 or $99 if the TCOl is a minimum of $80 x 24? What about plans for my mother, who might use 5 MB in a big month; should she have to pay $40 a month for data?

    To the extent Apple can bludgeon the carriers in to offering decent plans, that’s fine. The iPad service plans are a good start. But this has very little to do with Apple at the end of the day.

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