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  • Analyst Believes Apple is Likely to Debut $199 iPhone Later This Year
    by
    Akshay Masand
    Published on 02-20-2013 02:28 AM
    15 Comments Comments


    A recent Piper Jaffray analysis of global unlocked smartphone prices solidifies the firm’s expectation that Apple will be launching a low-cost iPhone later this year. The new handsets purpose will be to compete in the untapped market that is currently estimated to be worth $135 billion in 2013. Gene Munster recently reiterated his stance that Apple is likely to release a more affordable iPhone targeting developing regions like China and India.

    According to Gene Munster:

    …a lower priced iPhone will be a positive for AAPL shares for two reasons. First despite its lower margin, it should accelerate gross profit growth given the size of the low-end market (we estimate $135B in 2013); second, investors have historically bought into AAPL ahead of major new product releases.
    If Apple was to take available pricing in six international markets – Germany, UK, France, China, Brazil and India – Munster came up with a snapshot of the low-cost segment. He continued to note that the lowest priced iPhone, the iPhone 4, is still 133% more expensive than the global average for a low-end smartphone, suggesting Apple is only skimming the top of the market. As for Apple’s other handset models, the iPhone 5 is 19% more expensive than comparable flagship handsets from rival manufacturers, while the iPhone 4S is 48% more than mid-range devices. This goes to show that the company’s biggest gap in pricing is seen in the low-end segment. Munster wrote that the “low-end segment is important given we estimate it is a $135B market in 2013 that Apple is currently not participating in.”

    He expects Apple to debut an affordable $199 iPhone in the September quarter and believes the company could sell around 37 million units over the remainder of 2013. This number would jump to around 96 million units for 2014 and 170 million units in 2015.

    Source: AppleInsider
    This article was originally published in forum thread: Analyst Believes Apple is Likely to Debut $199 iPhone Later This Year started by Akshay Masand View original post
    Categories:
    1. iPhone,
    2. Apple
    Comments 15 Comments
    1. boostin4hp's Avatar
      boostin4hp - 02-20-2013, 03:54 AM
      Blah Blah Blah
    1. djaquapimp's Avatar
      djaquapimp - 02-20-2013, 04:00 AM
      Quote Originally Posted by boostin4hp View Post
      Ya think? Oh wait there is a $199 iPhone already.... DUH!
      Pretty sure they're talking about $199 without a contract...
    1. peacedog's Avatar
      peacedog - 02-20-2013, 05:13 AM
      Quote Originally Posted by boostin4hp View Post
      Blah Blah Blah
      I second the "blah blah blah". I think that even if there was the slightest chance that they release a budget iPhone, it won't be available in the U.S. The current iPhone models sell very well here in the states. There is no incentive for Apple to sell a product with a lower profit margin.
    1. HovikGas's Avatar
      HovikGas - 02-20-2013, 05:50 AM
      Quote Originally Posted by peacedog View Post
      I second the "blah blah blah". I think that even if there was the slightest chance that they release a budget iPhone, it won't be available in the U.S. The current iPhone models sell very well here in the states. There is no incentive for Apple to sell a product with a lower profit margin.
      Even if the U.S. isn't the target market for such an iPhone, I hope it is still compatible... I wouldn't mind buying a $200 iPhone that is unlocked and has no 2-year contract attached... If all the rumors of increased product cycles turn out to be true, I don't want to be locked into a carrier and not be able to sell my iPhone in order to purchase the latest iPhone at the subsidized price. Yes, I know you can buy an unlocked iPhone without a contract currently for $650-$850, but that's a LOT when compared to $200...

      I just wonder what the specs will be, since Apple isn't in the business of "making cheap products," as Phil would say...
    1. The6uest's Avatar
      The6uest - 02-20-2013, 06:17 AM
      Duh... they release a $199 iPhone every year!

      And if they're talking about non-contract price, then that would mean it'd be free in contract and probably a pretty cheap feeling phone. They should just keep selling the previous gen iPhone for less when the new one comes out.
    1. REMED1AL's Avatar
      REMED1AL - 02-20-2013, 06:34 AM
      The only option to make this work is making the iPod Touch into a phone. You'd have to find savings in the build to cover the increased costs for cellular hardware but it the end it would be a pretty decent option. Build it for people on pre-paid, those who want a cheap non-contract phone and markets in emerging areas.

      It would need to distant itself enough to only cater to those markets and not eat at the core iPhone buyer. Which, honestly I'd never buy the low end phone so it wouldn’t be that difficult.

      It may rough up the resell value of these phones buy a Porsche 911 isn’t worth less after they made the Boxster.
    1. drummer10630's Avatar
      drummer10630 - 02-20-2013, 07:25 AM
      iPod Touch and Skyroam Gmate = phone
    1. Jamesandthegiantkeg's Avatar
      Jamesandthegiantkeg - 02-20-2013, 07:38 AM
      Quote Originally Posted by The6uest View Post
      Duh... they release a $199 iPhone every year!

      And if they're talking about non-contract price, then that would mean it'd be free in contract and probably a pretty cheap feeling phone. They should just keep selling the previous gen iPhone for less when the new one comes out.
      Ya, I was going to say that they might just sell the iPhone 4 at $199 without contract after they release the 5s. Maybe it would just not be available with a contract, & the 4s would be the free phone on contract.
    1. King_O_Hill's Avatar
      King_O_Hill - 02-20-2013, 08:06 AM
      This phone would be more comparable to a 3g, as it would probably not have a retina display and also have little ram and storage.
    1. Nerd's Avatar
      Nerd - 02-20-2013, 08:36 AM
      Hahaha iphone soon will be start looking cheap like android phone.
    1. ensigma's Avatar
      ensigma - 02-20-2013, 12:22 PM
      Hmm... I just checked the MSRP for the 8GB iPhone 4 and they're going for $450. That's higher than I thought they would be. This shouldn't be a surprised though as apple products are always on the more expensive end.
    1. peacedog's Avatar
      peacedog - 02-20-2013, 01:30 PM
      Quote Originally Posted by ensigma View Post
      Hmm... I just checked the MSRP for the 8GB iPhone 4 and they're going for $450. That's higher than I thought they would be. This shouldn't be a surprised though as apple products are always on the more expensive end.
      Apple has to be careful with pissing off the big 3 carriers (AT&T, Verizon, Sprint) who sell most of their phones. If they dropped the unsubsidized price of the iPhone 4 to $300 or less, many people may choose to buy it unsubsidized and take it to T-mobile, Straight Talk, or some other compatible carrier.
    1. DrDweeb's Avatar
      DrDweeb - 02-20-2013, 02:58 PM
      blah blah blah

      Another anal-ist who wouldn't know if his a*hole was bored, screwed, punched or eat out by white ants!
    1. ttthomas's Avatar
      ttthomas - 02-20-2013, 05:13 PM
      Quote Originally Posted by REMED1AL View Post
      The only option to make this work is making the iPod Touch into a phone. You'd have to find savings in the build to cover the increased costs for cellular hardware but it the end it would be a pretty decent option. Build it for people on pre-paid, those who want a cheap non-contract phone and markets in emerging areas.

      It would need to distant itself enough to only cater to those markets and not eat at the core iPhone buyer. Which, honestly I'd never buy the low end phone so it wouldn’t be that difficult.

      It may rough up the resell value of these phones buy a Porsche 911 isn’t worth less after they made the Boxster.
      Spot on for t-mobile and the metroPCS merger.

      I have an employee that walks around with both, and her iPod is in a iPhone case for appearances.
    1. Donnutt's Avatar
      Donnutt - 02-20-2013, 09:44 PM
      Quote Originally Posted by boostin4hp View Post
      Blah Blah Blah
      Seconded. There ARE ALREADY cheaper iPhones. The 4, and the 4S. If you are on a budget, buy one of those.

      If Apple made a cheap iPhone, they would get bashed for making a cheap, inferior product. They have never intentionally done this, and I don't believe they'll start now.