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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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  • Folks on welfare need a Iphone too. Here ya go.
    Reply
  • digiex
    Apple Going the China way? Cheap devices to save its declining ass.
    Reply
  • 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.
    Reply
  • InvalidError
    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.
    Reply
  • joytech22
    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
    Reply
  • Haserath
    Re-release an old iPhone.

    Make billions from it a second time.

    Genius. :p
    Reply
  • tanjo
    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.
    Reply
  • sixdegree
    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.
    Reply
  • prathameshdotinfo
    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.
    Reply
  • greghome
    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 >?
    Reply