Contract-Free Budget iPhone Will Land in September

Apple iPhone 4A new report to investors by Deutsche Bank AG's (ETR:DBK) Chris Whitmore claims that Apple Inc.(AAPL) will offer a budget iPhone which retail for between $300 and $500 USD without a contract. Buyers will purchase prepaid calling cards for the device.

According to Mr. Whitmore, the budget iPhone is what will be likely called the "iPhone 4S", not the fifth generation model. Many previously claimed to have inside knowledge that the fifth generation model would be named the "iPhone 4 GS" or "iPhone 4S". The budget model would reportedly launch in September besides a fifth generation model (presumably named the iPhone 5).

Mr. Whitmore envisions the phone priced at around $350 USD -- a mark he said would not hurt profitability. He writes, "Apple shipped (about 87 million) units over the past 2 years which suggests it has reached only 6% penetration of its current addressable subscribers. Looking forward, we believe Apple has room to run both in terms of greater market penetration as well as incremental carrier additions going forward."

He compares the iPhone 4S to the current $230 USD iPod Touch, which features a 38 percent profit margin, versus the 70 percent profit margin on the current $650 USD unlocked iPhone. He estimates that with an RF module the iPhone 4S would deliver a profit margin of approximately 53 percent at $350 USD.

A cheap, unlocked handset would be essential in the greater Asian and African markets, where less than 20 percent of phones are under contract.

Everyone seems to be in agreement that a cheap, unlocked iPhone is incoming. What they can't seem to agree on is the form factor. Mr. Whitmore and The New York Times suggest a full form factor, similar to the current iPod Touch. By contrast Bloomberg and The Wall Street Journal claim the iPhone may be a mini version of the current form factor.

Source: DailyTech

Tags: Apple, iPhone

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Galaxy Note10 really is built around a 6.7-inch display
 
You may still be able to download your content
 
Facebook, Messenger and Instagram are all going away
 
Minimize apps to a floating, always-on-top bubble
 
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
 
The 2001 operating system has reached its lowest share level
 
The entire TSMC 5nm design infrastructure is available now from TSMC
 
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
    123
45678910
11121314151617
18192021222324
25262728293031




Poll

Do you use microSD card with your phone?
or leave your own version in comments (16)