RUMOR: Apple Working on Cheaper iPhone

Posted on January 8, 2013 by

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Rumors are going around again that Apple is working on a less expensive iPhone and will release it at the end of this year. The cheaper iPhone could potentially have a cheaper polycarbonate body and recycled or refurbished iPhone parts, according to a Wall Street Journal report.

The cheaper phone could resemble the standard iPhone, with a different, less-expensive body, one of the people said. One possibility Apple has considered is lowering the cost of the device by using a different shell made of polycarbonate plastic; in contrast, the iPhone 5 currently has an aluminum housing. Many other parts could remain the same or be recycled from older iPhone models.

Gene Munster, an analyst with Piper Jaffray, said that a less expensive iPhone won’t necessarily hurt Apple’s overall profit margin if it attracts buyers who haven’t bought iPhones before and not those who would have been willing to purchase the higher-end device.

What many “analysts” and “technology experts” always seem to ignore is that Apple already has a “cheaper iPhone” called the iPhone 4S. The iPhone 4S is still being sold by Apple and only costs $99. And if that’s still not cheap enough, they also give the iPhone 4 away for free when signing up for a two year contract. My guess is, and I’m sure I’m right, is that by the end of this year the iPhone 5 will become the “cheaper iPhone” and the iPhone 4S will become free when Apple releases the 7th-generation iPhone.

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