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Budget iPhone Could Generate $6.5 Billion For Apple

By - Source: Mobile Marketing Watch | B 19 comments

Apple expected to charge nearly $200.

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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Top Comments
  • 10 Hide
    Anonymous , January 11, 2013 2:09 AM
    Folks on welfare need a Iphone too. Here ya go.
Other Comments
  • 10 Hide
    Anonymous , January 11, 2013 2:09 AM
    Folks on welfare need a Iphone too. Here ya go.
  • 4 Hide
    digiex , January 11, 2013 2:28 AM
    Apple Going the China way? Cheap devices to save its declining ass.
  • 2 Hide
    Achoo22 , January 11, 2013 2:55 AM
    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 Hide
    InvalidError , January 11, 2013 2:57 AM
    With the Nexus 4 raising the bar on what to expect at the $400 price point, I certainly would certainly hope Apple is starting to feel the clue stick beating down on their products and fans thereof.
  • -1 Hide
    joytech22 , January 11, 2013 3:22 AM
    You know, Phil Schiller already shot down the idea of a cheap iPhone.. It's a bit late to report on this news Tom's. lol
  • 8 Hide
    Haserath , January 11, 2013 3:31 AM
    Re-release an old iPhone.

    Make billions from it a second time.

    Genius. :p 
  • 4 Hide
    tanjo , January 11, 2013 4:05 AM
    Lower quality screen? Downgraded processor? You mean a rehash of iPhone 4?
    Now they can sell old unused slow chips. Brilliant. They should call it iPhony.
  • 6 Hide
    sixdegree , January 11, 2013 4:21 AM
    I'm afraid thing like this will dilute iPhone's exclusivity. Steve Jobs must be rolling in his grave the day that budget iPhone launched.
  • 6 Hide
    prathameshdotinfo , January 11, 2013 5:40 AM
    sixdegreeI'm afraid thing like this will dilute iPhone's exclusivity. Steve Jobs must be rolling in his grave the day that budget iPhone launched.


    100% agree with sixdegree. Any Budget phone may benefit Apple in short term, but in long term its a sure disaster. It will loose its Premium Brand Positioning. People buy iPhone in India not because its a good product, but because its a status symbol. If my driver is going to carry the same phone as I am carrying then I loose interest in that Brand. And its a fact that we cannot deny...We live in a Branded World and are completely integrated into it.
  • 1 Hide
    greghome , January 11, 2013 6:34 AM
    sixdegreeI'm afraid thing like this will dilute iPhone's exclusivity. Steve Jobs must be rolling in his grave the day that budget iPhone launched.


    Like the iPad mini >?
  • 1 Hide
    cats_Paw , January 11, 2013 7:26 AM
    Zak Islam "could" write other articles.

    This is very strange. "Could" is "news" nowdays...
  • 2 Hide
    Murissokah , January 11, 2013 7:39 AM
    If they release a budget phone, iPhone will have to face heavier competition on the high-end front. In my country, an iPhone 5 64gb runs for 1700USD (5,2 x minimum wage). People who buy iPhones here do so because it is a symbol of social status. They probably wouldn't buy it if everyone could have one.
  • 0 Hide
    weierstrass , January 11, 2013 9:38 AM
    Apple has already made clear that they are not working on a budget iPhone, toms is as always late.
    Ref: http://www.spiegel.de/netzwelt/web/apple-marketingchef-schiller-kein-billiges-iphone-a-876951.html
  • 0 Hide
    weierstrass , January 11, 2013 9:39 AM
    Apple has already made clear that they are not working on a budget iPhone, toms is as always late.
    Ref: http://www.spiegel.de/netzwelt/web/apple-marketingchef-schiller-kein-billiges-iphone-a-876951.html
  • 0 Hide
    weierstrass , January 11, 2013 9:39 AM
    Apple has already made clear that they are not working on a budget iPhone, toms is as always late.
    Ref: http://www.spiegel.de/netzwelt/web/apple-marketingchef-schiller-kein-billiges-iphone-a-876951.html
  • 0 Hide
    weierstrass , January 11, 2013 9:39 AM
    Apple has already made clear that they are not working on a budget iPhone, toms is as always late.
    Ref: http://www.spiegel.de/netzwelt/web/apple-marketingchef-schiller-kein-billiges-iphone-a-876951.html
  • 1 Hide
    Non-Euclidean , January 11, 2013 11:29 AM
    I'm sorry, what was that?
  • 0 Hide
    Non-Euclidean , January 11, 2013 11:36 AM
    These aren't the budget iPhones you are looking for. You can move along now.
  • 0 Hide
    wemakeourfuture , January 11, 2013 1:34 PM
    Achoo22The 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.


    ummm... it's not even targeted for people who want a 2-3 year contract. They're targeted towards people who want to buy the phone outright, you know the 2.5 billion people in China and India.
    Lets not forget the 1 billion or so in Brazil, Russia, Indonesia, Malaysia, Pakistan and Middle East.