Low Cost iPhone: Will Apple Diversify Suppliers to Produce Low Cost iPhone?

Low Cost iPhone: The talk of Apple Inc. (NASDAQ:AAPL) selling a low cost iPhone is not going to die down anytime soon. In fact, this rumor will likely stay strong until the Cupertino-based company finally decides to move in this direction – whenever that may be.

Apple Inc. (NASDAQ:AAPL) is actually the smart money’s second favorite publicly traded company but hedge funds have started dumping Apple Inc. (NASDAQ:AAPL) in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).

AppleInsider.com has some more information on this, touching on a report from KGI analyst Ming-Chi Kuo. Here is what the article has to say:

“A fresh report from KGI analyst Ming-Chi Kuo on Tuesday predicts Apple will tap manufacturing partner Pegatron to build a majority of orders for the rumored low-cost FDD-based iPhone, as well as more than half of all legacy iPhone 4 and iPhone 4S orders, in a move to diversify suppliers.”

As you can imagine, it would make sense for Apple Inc. (NASDAQ:AAPL) to diversify suppliers if it decides to release a low cost iPhone in the near future.

Most people are aware that the company has long relied on Foxconn as its primary supplier. That being said, “Kuo believes that Pegatron could become a major contributor to the Cupertino company’s important iPhone business.”

With this in mind, you may be wondering how much business Apple would give Pegatron. Once again, there is no way of saying for sure, being that a final deal is not in place, but Kuo believes that the supplier would be responsible for “75 percent of low-cost iPhone orders and 55 percent of iPhone 4 and 4S production.”

This would be a huge change for the company, especially if it decides to give the supplier business across its entire iPhone lineup, not just a new model that would be sold at a cheaper price.

For now, this is another thing to think about as everybody wonders if Apple Inc. (NASDAQ:AAPL) will release a low cost iPhone in 2013.

Do you think this will become reality sooner rather than later? Share your opinion in the comment section below.

Check back here for more updates on Low Cost iPhone.

DISCLOSURE: I have no positions in any stock mentioned.

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