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Low-Cost iPhone Could be Powered by Snapdragon CPU

By - Source: Forbes | B 21 comments

Apple is seemingly working on new product for the low end market.

The existence of a low-cost iPhone has seemingly been confirmed with the device apparently sporting a Qualcomm Snapdragon processor.

Analysts from investment firm Detwiler Fenton have been carrying out checks with suppliers and subsequently found that Apple is working on a new product for the low end of the market that utilizes a Qualcomm Snapdragon processor.

Detwiler Fenton said in a note to clients that if the product is a low-cost version of the iPhone, utilizing a Qualcomm processor could decrease costs and keep profit margins at an adequate level.

An integrated chip for a low-cost iPhone could result in $15 per unit being paid to Qualcomm, the investment group added. The chip maker already receives substantial income through the majority of Android and Windows Phone models utilizing said processor.

Apple, which was lately overthrown as the world's most valuable company, has stressed that a cheap iPhone will never come to fruition. However, amid former CEO John Sculley stressing that the firm should target developing markets, such a product may generate upwards of $6.5 billion in revenue.

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  • 13 Hide
    tipoo , January 28, 2013 3:28 PM
    They have the A5, A5X, A6, A6X to choose from. Why would they go with something else other than their own designs? They could shrink down one of their old ones and use that.
Other Comments
  • 13 Hide
    tipoo , January 28, 2013 3:28 PM
    They have the A5, A5X, A6, A6X to choose from. Why would they go with something else other than their own designs? They could shrink down one of their old ones and use that.
  • 9 Hide
    ericburnby , January 28, 2013 3:28 PM
    Terrible runor. Apple could just switch their A5 processor to a newer process and make it even cheaper than they do now. And its 100% compatible with iOS already. A Snapdragon CPU would require Apple to make changes to their SDK to support it. I just don't see it happening considering Apple's expertise in chip design. They don't need anyone else's processor.
  • 8 Hide
    tipoo , January 28, 2013 3:30 PM
    The A5 is already frequently used in their lower cost products like the iPad Mini.
  • 7 Hide
    stevessvt , January 28, 2013 3:40 PM
    Why dont the drop the full retail of the 4S to $399 and the 4 to $299 and be done with it already.
  • 6 Hide
    tipoo , January 28, 2013 3:45 PM
    I also don't get the concept of a cheaper iPhone as a whole, in addition to not understanding why they would go Snapdragon. They have the iPhone 4, iPhone 4S, and iPhone 5 on sale currently, and the old ones always get cheaper every time a new one is out, so wouldn't the 4 and 4S just be even cheaper next time? Where would a "cheap" iphone even fit in?
  • 0 Hide
    jaber2 , January 28, 2013 3:55 PM
    How much could they save by switching to other processors on the 4 and 4s?
  • 3 Hide
    whiteodian , January 28, 2013 4:01 PM
    tipooThe A5 is already frequently used in their lower cost products like the iPad Mini.
    I disagree that the mini is low-cost. At least compared to it's competition such as the Nexus 7 and the Kindle Fire HD. Those devices beat it by over 33% or the cost of $129.
  • 4 Hide
    Vladislaus , January 28, 2013 4:09 PM
    tipooThey have the A5, A5X, A6, A6X to choose from. Why would they go with something else other than their own designs? They could shrink down one of their old ones and use that.

    Agreed, It's highly unlikely Apple will use someone elses SoC. I also have my doubts on the cheap iPhone. This position is occupied by the iPhone 4.
  • 2 Hide
    bustapr , January 28, 2013 4:15 PM
    whiteodianI disagree that the mini is low-cost. At least compared to it's competition such as the Nexus 7 and the Kindle Fire HD. Those devices beat it by over 33% or the cost of $129.

    it may not be low cost by your standards, but by apples products it is. i still dont see why the hell theyd make a cheaper iphone since theres still the iphone 4 and 4S competing in the different price points. probably would knock out the iphone 4 from the market in favor of a bigger iphone 4S option, but I wouldnt see that as a smart move at all. also I cannot see how including a snapdragon cpu would be a smart move for them at all. Im fairly sure apple pays manufacturers cheaper than $15 per phone to make their own chips. paying over the cheapest option doesnt seem very applelike to me.

    anyway thats just the business side of me talking. i dont quite believe these rumors. If theyre true, then Im left scratching my head at apples direction and intentions.
  • 3 Hide
    the1kingbob , January 28, 2013 4:26 PM
    The only reason I can see this being true is because Apple is learning from last quarter. Record revenue, flat profits, and fat decrease in apple stock. They maybe looking to lower the overall cost to increase profit margins. So granted it makes all kinds of logic for them to just lower the price on the past phone, but in apple logic that doesn't make enough profit. So they may start cutting past phones and replace them with lower hardware with equal profit margins of the high end phone. I personally think it is a terrible idea.

    As for the ipad mini. It is a lower cost product, when compared to apple offerings. It is overpriced when compared to nexus/fire. It also has terrible profit margins when compared to other apple products, but has great profit margins when compared to nexus/fire.
  • 1 Hide
    Murissokah , January 28, 2013 5:46 PM
    I don't see how this cheap iPhone could be beneficial. It would risk Apple's captive market by dilluting the status associated with the brand, while aiming for an extremely aggressive and cost-sensitive market. Looks like a very risky move.
  • 0 Hide
    szbxa , January 28, 2013 7:13 PM
    it's just a strategic move, apple is incorporating the processor that other high end android phones use into its low end iphone, probably trying to show that they've been superior all along.
  • 0 Hide
    tonkotsu , January 28, 2013 7:22 PM
    I wonder if apple understands that flooding the market with cheap iphones will destroy their reputation as a "luxury" gadget company. I wonder how all the normal iphone buyers will feel when every guy and his mom has an idevice.

    Also.. android already owns a most of the "developing markets". Been to china recently? everyone has android phones and tablets.
  • 0 Hide
    Vorador2 , January 28, 2013 7:43 PM
    Doubtful. My guess is a move like the iPad mini: launching a redesigned iPhone 4
  • 0 Hide
    Anonymous , January 28, 2013 8:09 PM
    The poor and welfare folks need a Iphone too..
  • 1 Hide
    TheBigTroll , January 28, 2013 9:24 PM
    the word apple and low cost dont go together
  • 0 Hide
    Vladislaus , January 28, 2013 10:00 PM
    szbxait's just a strategic move, apple is incorporating the processor that other high end android phones use into its low end iphone, probably trying to show that they've been superior all along.

    WTH! Qualcomm has Snapdragon's on low end to high-end Android phones. They don't just make one SoC.
  • 0 Hide
    tobalaz , January 29, 2013 12:57 AM
    Wouldn't the Allwinner SoC be a better choice if they wanted to go cheap?
    At $7 a pop sporting a 1.2 ghz A8 cpu and Mali 400 cpu (like the galaxy S2) it should run decent enough, can be purchased in quantity easily and has already found its way into a plethora of the 7" Android tablets running ICS.
  • 0 Hide
    cats_Paw , January 29, 2013 6:21 AM
    TheBigTrollthe word apple and low cost dont go together


    Yeah, Apple rided on the "Your Status will improve by owning this phone" for all the time to get sales.
    Low cost... now everyone who bought it expensive wont have the Status anymore. Way to angry your consumers :D .
  • 0 Hide
    geronimo8 , January 29, 2013 4:11 PM
    Wait for the newest iPhone to come out and watch the current iPhones to drop prices. Viola, that's the cheap iPhone you were looking for.
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