We've heard numerous rumors
planning to launch a low cost version
of its iPhone
, perhaps one that's constructed of polycarbonate plastic rather than aluminum and glass. While some have dismissed such chatter as nonsense (including Apple
), at least one analyst believes the Cupertino company is still on track to release a more affordable iPhone device.
Kulbinder Garcha, an analyst with Credit Suisse, believes Apple has come to the decision to abandon its premium-only policy so that it can capture more market share among smartphone owners and boost profits as well, The Street
reports. Garcha also argues that a low end iPhone wouldn't hurt the brand, not with Apple's attention to detail, and that its profit margins on such a device could be higher than people think.
By Garcha's calculations, a lower end iPhone device could generate as much as $21 billion in revenue and $5 per share in earnings in 2015. If Apple's math is even remotely close to Garcha's, then it seems a foregone conclusion that such a device is headed to market.
Interestingly enough, a forum user on a Chinese website recently posted a picture of a bunch of iPhone 5C retail cases in a bin. He notes that these are for the cheaper iPhones Apple is working on, Alternately, it could be just another Photoshop job, but if it is, it's a very good one, as it captured the familiar font, logo, and curved design that Apple's into. Why call it the iPhone 5C? Some have speculated that the "C" could stand for "cheaper," though it could also mean "color" if Apple decides to offer the lower cost device in a range of color options.