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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  • darth pravus
    I think most people who want apple products scraped out their livers to buy one so price isn't an issue.

    Since it's a status symbol I can see huge amount of people going for the "Cheap" Iphone.
  • mactronix
    If its cheaper its going to have its specification hacked down accordingly. I find even cheaper Android phones walk all over the full fat i phone for speed/ease of usage. This does not exactly bode well for the probable performance/ competitiveness of a cut down unit.
    But then as said for most its just the logo they want. But then a Dino isn't a real Ferrari to a lot of fans is it.
  • darth pravus