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  • Gene Munster: Time Has Come for Cheaper iPhone

    It's the suggestion of many and now the prediction of one very prominent Apple watcher and market analyst. According to a research note published Monday for investors, Piper Jaffray's Apple news and research guru Gene Munster speculated about what Apple may be forced to do next year given the increased competition from cheaper smartphones in the mobile space.

    "We believe the delta between smartphone market growth and iPhone growth will push Apple to release a lower priced device despite comments to the contrary," Munster said this morning. "Looking back historically, Apple always priced Macs as the higher end of the market and ultimately the iPad, and now the iPad mini, became the 'Mac for the masses.'"

    According to Munster, a cheaper entry-level iPhone is critical for one very pressing reason - Android phones are getting hot and they aren't going anywhere. Even if some folks want an iPhone, the general quality and affordability of Android phones may be enough to keep consumers on the financial fence away from Apple territory.

    Munster says Apple may very well release a dirt cheap iPhone (at least when compared to the cost of a fully-equipped new model) that will be possible by plucking several nice but non-essential features from the high end models, like Retina display. And while Munster is aware of how low-price, contract-free iPhones have been rumored about since the first model arrived in 2007, the analyst thinks 2013 may the year when this longstanding rumor may finally become a reality.

    Source: Barron's
    This article was originally published in forum thread: Gene Munster: Time Has Come for Cheaper iPhone started by Michael Essany View original post
    Comments 43 Comments
    1. dsg's Avatar
      dsg -
      Off topic: It's padawan learner
    1. Donnutt's Avatar
      Donnutt -
      Quote Originally Posted by klouud View Post
      You guys advocating the GS3 and Note 2 are dead on. I have buddies that each have a note 2 or GS3 and they are pretty cool. The only problem with them is they are both running Android. So its a big no for me. I've used both OS's extensively and IMO iOS is the superior platform. I'll be waiting until next October to roll around and be upgrading my 4S to the new iPhone. Sheep? Nope. I made my own mind up through personal research.
      Exactly right. Great devices? Probably. I just can't stand android. It doesn't work like it should. It's clunky.
    1. kalpesh78's Avatar
      kalpesh78 -
      Quote Originally Posted by mustard05 View Post
      Actually it would devalue the brand.
      Apple is a premium product. I'd hate it if they start becoming a nokia or a samsung or an Htc who launch a segment of phone every 2 months. its like saying Lamborghini or Rolls Royce should come up with a cheaper car. you make more money with cheaper phones but it just devalues a brand significantly.

      Quote Originally Posted by VerizonIphone4_help View Post
      gene mustard has no idea >.> why in the world would apple release a cheaper iphone? They have nearly every darn thing in the market right now from ipod nano to iphone to ipad mini to ipad. Then they have everything covered in the traditional pc and laptop market as well.

      Unless apple makes up a new category, like they did with the iphone and ipod, they a have no need to introduce another product line.
      couldn't agree more on this one.