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Low-End iPhone is Actually the iPhone 4 with 8GB Storage, To Launch with iPhone 5

Over the past few months, there have been several talks of Apple planning to release a cheaper version of the iPhone that is meant to be marketed for consumers with lower budgets and developing markets. Past rumors indicate that the new cheaper iPhone will be pretty similar to the iPhone 4, only with modest enhancements and perhaps a slightly different form factor. But now a new report just came in which relates that the rumored low-end iPhone is in fact the iPhone 4 but with lowered internal storage.

Cheaper iPhone 4
The exclusive report came straight from Reuters which claims that Apple have been talking with carriers China Mobile Ltd and China Telecom Corp Ltd with regards to carrying the cheaper version of the iPhone 4. As we all know, Apple products with its expensive price tag, have been known to cater towards the high-end market. But now it seems that Apple is looking to expand its market even more in order to accommodate the impressive growth of the Cupertino company.

Currently, owning an iPhone 4 in the U.S. means that you will need to dish out $199 for the 16GB model and $299 for the 32GB model which comes with a carrier contract. Buy a factory unlocked iPhone 4 will cost you $649 for the 16GB model and $749 for the 32GB one. As you can see, the internal storage of the device is pretty much the main factor that determines its price. According to the report, Apple will be downgrading the iPhone 4's storage into 8GB to be offered towards emerging markets. Decreasing the storage space of the iPhone 4 could easily cut down its price by more or less $100, which should be a viable pricing point for accommodating the low-end market.
iPhone 4
As of now, customers who wants to partake in the iOS experience but aren't willing to adopt a high-end iPhone will have to settle with the two-year old iPhone 3GS. If you have been closely following our blog, previous reports indicate that Apple will be offering a new model of the iPhone in order to accommodate developing markets. But with this report, it seems that the Cupertino outfit would rather retire the 3GS and replace it with the 8GB iPhone 4. Which makes sense since the 3GS is already on its twilight years and most likely won't be supported anymore beyond the iOS 5.

This seems to be quite a sound strategy of Apple which makes the most out of the investment in research and development. According to analysts, a cheaper iPhone could potentially cannibalize the sales of the premium models. But if Apple is hoping to tap into the potential of the emerging markets, especially China, then a cheaper phone is a must.

According to the report, the cheaper iPhone 4 will be launched alongside the iPhone 5. Nothing concrete is known regarding the specifications of the next generation iPhone but majority of the report indicates that it will feature a faster A5 chip, an 8 megapixel camera, thinner form factor and a larger screen. The iPhone 5 is expected to be announced by Apple next month during the company's media event. [via Reuters]

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