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Speculation Runs Wild as Apple (AAPL) Considers Low-End Smartphone

January 8, 2013 6:08 PM EST Send to a Friend
This afternoon Apple (Nasdaq: AAPL) watchers were buzzing about a rumored low-end iPhone. While this rumor is not new, WSJ sources claim Apple is in fact working on the device, though no decision has been made to move forward. Among other features, the low-end iPhone might include a cheaper plastic shell.

If Apple moved forward with plans for the cheap iPhone it would be a significant departure from Apple's strategy to target the high end of the market. Considering Apple's significant manufacture strengths, many believe Apple can easily create a device that would be competitive on price while maintaining functionality. However, cannibalization of its existing higher-margin products would no doubt be of concern.

Since launching the iPhone in 2007, Apple has made only one main iPhone model at a time.

If Apple decided to move forward with a low-end smartphone it could launch the device later this year.




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