Low Cost iPhone: For quite some time now, consumers have been wondering if Apple Inc. (NASDAQ:AAPL) will offer a more affordable version of its popular iPhone. While competing on price is not what Apple execs in Cupertino have been about in the past, it is safe to say that this is something the company may be looking to do in the near future.
But just how quickly will Apple Inc. (NASDAQ:AAPL) get this smartphone to the market? Along with this, the other question to answer is this: just how cheap will a cheaper iPhone be?
There are many reasons why this is so important, and ABI Research touches on a few of them in one of its most recent pieces.
In short, the research company is reporting that low cost smartphones will account for 46 percent of all smartphone shipments by 2018. If you don’t think that is a big number, consider this: only 28 percent of smartphones shipped in 2012 fit this bill.
Over the next six years, ABI sees the smartphone market changing quite a bit. If things work out as they are suggesting, almost one out of every two smartphones sold will be one that is considered “low cost.”
And guess what? Apple doesn’t even have a horse in the race at this time. With numbers like these, it only makes sense that Apple Inc. (NASDAQ:AAPL) is strongly considering the roll out of a cheaper device. If they don’t, for whatever reason, they are giving the rest of the industry more time to get a jump on them.
Senior analyst Michael Morgan added, “As the feature phone segment continues to lose its battle for relevance, the low-cost smartphone has become the tool for operators seeking to drive increased data revenues.”
Of course, these low cost smartphones are going to target emerging markets. And with the brand recognition that Apple Inc. (NASDAQ:AAPL) brings to the table, all the company needs is a smartphone, with the appropriate set of features, which can compete with what is currently being offered.
Senior practice director, Jeff Orr, added this tidbit of information:
“As smartphone penetration moves from early adopters to mass-market and laggard consumer segments, the smartphone as a product will be less dependent on technical superiority, and more dependent on reliability and value.”
Will Apple be able to take full advantage of this growing trend? With the market changing quickly, Apple needs to act fast.
Check back here for more updates on Low Cost iPhone.
DISCLOSURE: I have no positions in any stock mentioned.
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