It's been a persistent rumor for months. Apple is reportedly planning to release a modest, scaled-back, lower-cost version of its iPhone this year as a means to entice emerging markets and smartphone newbies. After all, once a product buyers is caught up in Apple's gravitation pull, it's an ecosystem they're very likely never going to escape from.
Gene Munster of Piper Jaffray predicted this week that Apple will unleash a new unsubsidized phone with a $200 price tag this year. Munster says that a less expensive iPhone "won’t necessarily hurt Apple’s overall profit margin if it attracts buyers who haven’t bought iPhones before and not those who would have been willing to purchase the higher-end device."
Despite the anticipated average selling price of the iPhone tumbling from $640 to $520, Munster sees Apple adding $6.5 billion in revenue to its bottom line if this "inexpensive iPhone" manifests and takes off.
According to DigiTimes, the new iPhone model will be primarily aimed at China and other emerging markets, where Cupertino’s flashy kit hasn’t fared nearly as well as it has in the US and Europe.