By Vamien McKalin | Apr 10, 2013 08:56 AM EDT
Apple has always been the one dictating which direction the smartphone market should go, but all this has changed with the release of the iPhone 5 in 2012. With the competition moving itself away from Apple's shadow, rumors are popping up of the next iPhone having two versions, one with a small display, and the other with a larger.
Brian White of Topeka Capital Markets believes Apple will definitely go the route of launching the next iPhone with up to three screen sizes later in the year, possibly this summer.
"We believe Apple is coming around to the fact that one size per iPhone release does not work for everyone and offering consumers an option has the potential to expand the company's market share," White wrote in a note to investors on Tuesday.
White also believes Apple will release a low cost iPhone before the end of 2013; however, he thinks it will not be cheaper than $300 and that those expecting an iPhone costing $150 to $200 will end up being disappointed.
"We have previously discussed an ASP of $250 to $300 for a lower priced iPhone; however, a price tag of $300 to $350 now makes more sense," he wrote. "We believe this price point is reassuring for investors that Apple wants to expand its market reach with consumers in developing countries such as China; however, the company will also manage its margin profile and brand appropriately."
If Apple does move to releasing multiple iPhone devices this year, it would be a huge change from its well known strategy. Still, multiple devices alone won't cut it, and neither will launching iPhones with up to three screen sizes. The company will be forced to innovate with new and exciting features if it wants the iPhone to stay relevant in an ever-hostile smartphone market.
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