iPhone 5 and 4S likely for next gen, says analyst
updated 10:55 am EDT, Mon June 27, 2011
4S model would be cheaper, compete with Nokia, RIM
Apple will introduce not one but two new iPhone models come September, suggests Deutsche Bank's Chris Whitmore. The analyst argues that while there may be a normal flagship iPhone, "with Nokia and RIMM struggling, the time is right" to attack the mid-range smartphone market with a cheaper device, nicknamed the iPhone 4S. He classifies the mid-range as between $300 and $500, but proposes the 4S as shipping unlocked at $349, and having the option of a prepaid voice plan.
Combining those two options would "drive significantly greater penetration" into a market of 1.5 billion people in 98 countries, two thirds of whom are said to prefer prepaid cellular service. Only the US, Canada and the Middle East prefer subscriptions, according to Whitmore. In Africa, some 96 percent of phone users are said to gravitate toward prepaid plans.
Analysts have claimed for some time that Apple will or should build cheaper and/or prepaid iPhones. The company has so far only adopted the strategy of continuing to sell last-generation phones for under $100 on contract. These may not be especially appealing however, since Apple hardware evolves quickly and a device can be made inadequate or obsolete by the end of a two-year term.
Fresh-Faced Recruit
Joined: Jun 2011
That does not make sense
Apple usually keeps last years model around another year at a reduced price. That seems like a better strategy.
An iPhone nano would probably just end up cannibalizing on the iPhone market, and Apple rarely deals with low profit products anyway.
I see no reason Apple would change this strategy.