Low-Cost iPhone Could be Powered by Snapdragon CPU

By Zak Islam
published

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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Zak Islam
21 Comments Comment from the forums
  • tipoo
    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.
    Reply
  • ericburnby
    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.
    Reply
  • tipoo
    The A5 is already frequently used in their lower cost products like the iPad Mini.
    Reply
  • stevessvt
    Why dont the drop the full retail of the 4S to $399 and the 4 to $299 and be done with it already.
    Reply
  • tipoo
    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?
    Reply
  • jaber2
    How much could they save by switching to other processors on the 4 and 4s?
    Reply
  • whiteodian
    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.
    Reply
  • Vladislaus
    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.
    Reply
  • bustapr
    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.
    Reply
  • the1kingbob
    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.
    Reply