Budget iPhone Could Generate $6.5 Billion For Apple

An analyst believes the rumored budget iPhone could generate upwards of $6.5 billion in revenue for Apple.

In a research note, Piper Jaffray analyst Gene Munster said he believes there's a 60 to 70 percent chance Apple will launch a lower-priced iPhone this year. He expects the the cheaper smartphone will feature a lower-quality screen and casing, as well as a potentially downgraded processor.

Munster predicts that Apple will charge nearly $200 for the off-contract phone "given Apple's history of commanding a premium to the market." The price would represent "a significant discount" when compared to the premium-priced current iPhones.

He added that if Apple launched the low-cost iPhone in September, it's likely to account for 30 percent of iPhone sales during 2013's fourth quarter. Munster believes if the proposed launch does occur, it would see the selling price of an iPhone decrease from $640 to around $520.

 

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  • Anonymous
    Folks on welfare need a Iphone too. Here ya go.
    10
  • Other Comments
  • Anonymous
    Folks on welfare need a Iphone too. Here ya go.
    10
  • digiex
    Apple Going the China way? Cheap devices to save its declining ass.
    4
  • Achoo22
    The difference between a $200 iPhone and a $700 iPhone is pretty small when one considers that a three-year service plan for either will run several thousands of dollars. Relative to the cost of ongoing service, spending $700 on a cellular phone is akin to spending $60 on a cordless/corded telephone.

    If you want to get my attention, offer a nice phone with cheap service.
    2