At this point, it is already well-established that when it comes to the smartphone industry as a whole, Apple is regarded as one of the top dogs with a reputation for higher pricing strategies, so why would they potentially release a cheaper iPhone version? When it comes to reports regarding rumors and speculations, you can expect that Apple will always be the target of such news. With each Apple product launch, you can trust that it will be pre-empted with a whole slew of rumors and speculations. One of the most popular subjects of such reports is the iPhone, arguably the most popular Apple gadget of them all. A new report indicates that Apple will release a cheaper iPhone in 2014.
According to a report by Business Insider, Apple analyst Gene Munster of Piper Jaffray & Co. has made a note predicting that Apple will introduce a check, unsubsidized iPhone to be released in 2014. If there is something Apple is not known for, it is for selling "cheap" anything. Apple is well-loved for its premium products with the corresponding price and quality to show for it. As you know, if you buy an iPhone 5 in the United States, it will cost you $200. The price is not too steep because the carrier partners are covering for most of the device's cost. So why is Apple going to launch an unsubsidized cheaper iPhone?
What seems attractive in the U.S. doesn't necessarily apply to countries like India and China where subsidized phone contracts leave much to be desired. For this reason alone, Apple's market share in these countries continue to struggle. If Apple wants to tap into the potential goldmine of consumers of India and China, then Apple will need to come up with a solution to this problem. Munster believes that if Apple wants to have a fighting chance in said countries' market which is dominated by entry-level Android handsets, the company needs to release a cheaper version of the iPhone. No further details have been provided regarding this cheaper iPhone.
While it is has been widely speculated that Apple will eventually release a cheaper iPhone in the past, the usual approach of the company is to downgrade the price of previous generation handsets in order to fill the entry-level market. Buying a two or three year old device is still pretty much viable, but there is just something unsatisfying about it on a psychological level. Of course, Apple has previously released cheaper versions of its hardware before like the iPod Shuffle and the downsized tablet, iPad mini. If Apple is going to sell a true cheaper version of the iPhone, it could be a major game changer in emerging markets like China and India.
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