Low-Priced Apple iPhone Mini Coming This Year, Possibly In June: Analyst

By Binu Paul email: b.paul@mobilenapps.com | Feb 12, 2013 08:23 AM EST

Share This Story

  • Print
  • Email

The talks about a low-cost Apple iPhone are back again and this time, Topeka Capital analyst Brian Whit says the tech giant will release a low-priced iPhone this year which will be called 'iPhone mini' or 'iPhone Air.'

Follow us

"Now confident that a lower-priced iPhone will be launched by Apple in 2013, possibly as early as June." White wrote.

White speculated that the cheaper version of iPhone could have an unsubsidized price in the $250-$350 range, Forbes reported. As the price falls well below the $649 price for an unlocked 16 GB iPhone 5, the cheaper iPhone will definitely open up a better market for Apple in international markets such as Brazil, Russia, China, India and elsewhere. "We believe a $250-to-$300 price point will allow Apple to significantly expand its reach in the smartphone market and better address developing markets," he said.

He says an iPhone in the $250-$300 price range could pose a direct competition to China-based Xiaomi that offers high-end smartphones at a mid-range price of $320 in China. White predicted that such a phone would have a lower margin than the full-priced iPhone, however, would be above the corporate average when sold in volume.

Meanwhile, Pacific Crest analyst Andy Hargreaves opined that there would not be much profit from a low-cost model of the device, Barron's reported. "The concept of a cheap iPhone violates Apple's core operating principles because we cannot think of a single thing that a low-priced iPhone would do better than the current iPhones," he wrote. While accepting that a low-priced iPhone can improve Apple's overall smartphone sales volume, Hargreaves notes that margin on the device would be just $70 per unit, which is a petite profit margin compared to a gross margin of $295 per unit for the iPhone 5.

There has been a surge of rumors about the cheaper iPhone model following the recent citing of iPhone 5S in a Foxconn factory in China. The leaked images, giving the first glimpse into the design and dimensions of the most-awaited Apple smartphone, were posted on a blog on Chinese Web site Zol.com.cn. The images showed a product, very similar to iPhone 5, in various stages of production and it was rumored that this could be the assembly line of iPhone 5 knock-offs.

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

© 2014 Mobile & Apps All rights reserved. Do not reproduce without permission.

Featured Video : Intel Pocket Avatars

Join Our Conversation

Smartphones
Goophone i6 iPhone 6 clone up for pre-orderGoophone i6 iPhone 6 clone up for pre-order for $159.99, ships Aug. 1
NVIDIA SHIELD $299 tablet with Tegra K1 processor takes gaming to the next level (VIDEO)
Red HTC One M8 launching exclusively on O2 UK on Aug. 4
Verizon intros rewards program, the price is your privacy – What you need to know
Tablet / Laptop / PC
Dell Venue 7 and Venue 8Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon LogoAmazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC LogoHTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google DowntimeGoogle blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
PayPal iOS appPayPal for iOS update brings loyalty card support, other features and enhancements
Facebook Slingshot now official to challenge Snapchat – What makes it stand out?
Pinterest update brings Guided Search to desktop users (VIDEO)
SwiftKey goes free on Google Play, boasts great new features & improvements
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics