If Apple Builds a Low Cost iPhone, How Many Will It Sell?

It's been rumored on more than one occasion that Apple is going to release a lower cost iPhone model made of polycarbonate plastic in place of metal and glass. The simple reason Apple might even consider breaking its own status quo (and for the record, Apple denies that it is) is because Android holds the lion's share of the mobile market. Releasing a lower cost iPhone device doesn't guarantee a wave of Android (or potential Android) users will flock to iOS, but if done right, it makes sense that Apple could carve out a following among a different demographic. But just how many could it sell?

Piper Jaffray analyst Gene Munster believes a low-cost iPhone device could see sales in the neighborhood of 75 million units in 2014, CNET reports. Munster made his forecast in a note to investors, adding that Apple is likely to sell a $300 non-subsidized iPhone in September.

iPhone 5

The downside to doing so is that such a device could and probably would cannibalize regular iPhone sales. According to Munster, a non-subsidized iPhone would eat into about a third of regular iPhone sales, ultimately leading Apple to concede 37 percent of the high-end smartphone market.

What do you think? Should Apple launch an non-subsidized iPhone, or stick with premium models only?
Via:  CNET

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