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Apple to Launch Low-Cost iPhone with Larger Display

Apple's iPhone 5 | Apple Official Website

Apple’s iPhone 5 | Apple Official Website

A new rumor claims that Apple is planning to launch a low-cost iPhone with larger display during the second half of 2013. The rumor came from the hit-and-miss DigiTimes, which cited supply chain sources. As stated on the report:

Some sources claimed that they had seen the sample of low-cost iPhone, which will come with a larger display, meeting the prevailing trend for the adoption of 5-inch displays for high-end models. They added that the low-priced iPhone will also have a brand new exterior design.

Launching a New and Cheaper iPhone Model

It is believed that Apple’s success with the iPad Mini prompted them to work on a more affordable iPhone model. Moreover, there were speculations that the purported handset will rely on Qualcomm’s Snapdragon chipsets: Dual-core MSM8960 and Quad-core APQ8064.

Growth in the smartphone market is expected to come from countries like China, where customers prefer less expensive devices. Apple’s cheapest iPhone option, as of the moment, is the 8 GB iPhone 4 that is available for free under a two-year contract. It is also available without subscription for $450.

Although Apple has gradually expanded its iPhone lineup throughout the years by offering previous models at affordable price, investors believe that the company should do more. They suggest that the iPhone maker should the same with what they did for the iPad lineup by releasing an iPad Mini.

Finding Success in iPad Mini

It should be noted that the iPad Mini was met by strong demand in China. As a result, the 7-inch tablet has seen stock-outs and limited supplies in Hong Kong and Mainland China since its release late last year.

During Brian White of Topeka Capital Market’s checks in the said countries, he found out that there is an “insatiable demand” for the 7-inch tablet. According to him:

Prior to China launch, we indicated that the iPad Mini would be the “next big thing in China” and we believe this phenomenon is starting to develop. In our view, the smaller form factor and lower price point will allow Apple to sell the iPad Mini in more meaningful volumes versus the regular-sized iPad.

Other than that, White discovered that the iPad Mini has already become more popular with consumers than the iPad 4.

 

Rumors about Apple launching a cheaper iPhone are not new. However, the Cupertino-based company is yet to release such a device. Nevertheless, it hasn’t stopped analysts and industry watchers from predicting that the iPhone maker will eventually take that approach.

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