Review: Does Apple Need A Cheaper Iphone

Review: Does Apple Need A Cheaper Iphone

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Review: Does Apple Need A Cheaper iPhone

Apple iPhone is still the high-end models in the smart phone, is Apple's most profitable products. The external world widely thinks that Apple is regulating a low-end version for the symbolic iPhone. Apple investors and customers are patiently waiting for the next update of iPhone. Yet another point of view has got a strong consensus, the development of high-end product has been over in the company, but should introduce cheaper products in order to have a broader cell phone market.

Apple did not announce the new iPhone model in the end of its annual Worldwide Developers Conference, which is different from the practice of previous years. So the past month, the expectations for low-end iPhone are more common in the outside world. The low-end version of the iPhone is not equivalent to the next version of the standard model which plans to be listed on the market this fall. Wednesday's "The Wall Street Journal" quoted unnamed sources as saying, the next version of iPhone will be thinner than the standard iPhone4, and has a higher pixel camera.

It also has chip technology that can run a variety of wireless network, to become the real world-class iPhone dubbed by analysts. Currently, Apple creates different versions of the device for is for the CDMA network and GSM standard operators. However, many analysts believe that in this smart phone industry that is still in rapid development, Apple needs to expand from the current position to create a high ground. The report that Toni Sacconaghi of Bernstein Research give to the clients last week wrote; that we see two interesting opportunities for the iPhone; it is that to expand the operators and the low-end or pre-paid equipment, the introduction of two things will happen in the next year. Sacconaghi added: the contrary, in view of the development of high-end smart phone market slow than whole continued forward market, not to seize any opportunity could lead to Apple behind the market growth rate.

Low-end market of smart phone has more opportunity. NPD Group estimates that in the United States, the year's first quarter 20% of smart phones sold price close to the phone with the price of $ 200, nearly 43% retail price will lower than $ 200, of which 13% of the smart phone is free to use with signing a two-year contract. The low-end iPhone can help Apple to break the prepaid cell phone market in North America, but also has greater appeal for emerging countries, and the consumers in those countries are more sensitive with the price.

The analyst Katie - Huberty of Morgan Stanley researches the Apple's supply chain, because she believes that the low-end product is Apple's plans for next year. The report that Hubert gave to the clients last week wrote: based on the new products and possible low price point, Apple forecasts that the iPhone sales will grow significantly; Currently, iPhone is widely regarded as the largest profit on the market of smart phones, so some suspicion, where Apple has made changes can both the low-cost sales, while maintaining relatively high profit margins. Wayne - Lamb is the IHS iSuppli's senior analyst, said Apple in many ways can save costs, including high-resolution display and camera, as well as memory and processor.

Lamb said: far as we know, the cost estimates on materials that Apple, HTC and Samsung produce the high-end mobile phones is between $ 170 and $ 190. ; Lamb said the most expensive part of the current iPhone is its screen with the resolution of the retina, the average price is $ 28; to reduce material costs less than $ 100 is completely conceivable. If you can do it, Apple can develop our countries to produce iPhone, and also can obtain high profits.

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