Apple ‘unlikely’ to introduce new, inexpensive iPhone model

“Charlie Wolf with Needham & Company said in a note to investors on Monday that he believes Apple should introduce an inexpensive iPhone model to address developing markets. But he doesn’t think that will happen anytime soon,” Neil Hughes reports for AppleInsider.

“Wolf believes Apple could have addressed prepaid markets by keeping the iPhone 3GS available at a lower price,” Hughes reports. “Previously, the smartphone first released in 2009 was available for free with a two-year contract, but the iPhone 3GS was replaced by the iPhone 4 last month.”

Hughes reports, “In the predominantly prepaid markets of developing countries, unlocked phones can start at prices as low as $150. Because prepaid markets are now growing faster than traditional postpaid markets like the U.S., Wolf said it’s an “open question” whether the iPhone can continue to gain market share.”

Read more in the full article here.


    1. Who says that making the iPhone 3GS is that much cheaper? Just because the parts are older does not mean they are cheaper or easier to assemble. Production process has also evolved. If it is cheaper but not by much, it is a useless exercise.

    1. That’s what this analyst doesn’t get. Apple doesn’t have unlimited production capacity. It’s much easier to make the 4 and 4S as the lower models due to the same case design and much of the same components. The 5 obviously is very different than the 3GS, 4 or 4S.

      I’m sure Apple will address the prepaid markets in due time, but when it can sell all the iPhones it can make at higher prices (and thus profits), why be that eager to get into lower profit markets?

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