iPhone low-cost model is more likely a “mid-end” device, analysts say

Image: Martin Hajek

Apple doesn’t want to sacrifice quality for price, but on the other hand, they want to offer the most affordable device.

AllThingsD cites a survey carried out by JP Morgan analysts Mark Moskowitz and Gokul Hariharan.

According to the analysts, the cheaper iPhone will in fact be a mid-range device that will be positioned exactly halfway between economic smartphones as well as high-end ones such as the iPhone 5.

The two analysts point out that Apple did the same at the launch of the iPod nano and iPod mini, which were less expensive than the standard versions, but proved significantly more expensive than the entry-level competition.

This low-cost model would have a starting price of $ 350 – $ 400 without subsidies, making it much cheaper than the high-end model which comes at $650.

They write: “Currently Samsung dominates this segment ($200-500 price range) with 35+ percent market share. […] We believe Apple could take 20-25 percent of this market in the next 12 months (from almost no market share currently), if it prices a lower-priced product at $350-400 levels.”

In addition, a Digitimes report states that Apple will launch only 2.5 to 3 million cheap iPhones in the first quarter to test the market.