New details and images of the rumoured sub-$400 iPhone have emerged, as Apple prepares for its annual developer conference this month.
The images of what is believed to be the plastic back panel of Apple's purposed budget iPhone made their way onto the Web this week. Apple Insider reported the images were posted on the Chinese micro-blogging site Sina Weibo, and punted and dissected by Apple.pro.
According to Apple.pro, the plastic rear panel seems thicker than that of the iPhone 5 and is shaped more like the iPhone 3GS. Although the authenticity of the images can't be confirmed, the design points to expectations of the budget iPhone.
Last week, DigiTimes reported Apple plans to launch two new iPhones in the third quarter of the year. The report cites industry sources in Taiwan stating the US computing giant has requested manufacturers in the supply channel to prepare for monthly production of 20 million devices.
The sources indicated the new iPhones will be unveiled in June, with one of them expected to be a revised version of the iPhone 5. The device's hardware is said to be comparable to that of the iPhone 4S, with lower display and processing specifications - again indicating Apple's rumoured move to a cheaper smartphone.
The sources said shipment of the new iPhones could be expected as soon as the end of the month.
Lips sealed
Apple has been tight-lipped about the rumours of the budget iPhone as well as the iPhone 6, which is expected to make its appearance next year.
Apple and tech commentator John Gruber believes Apple's developer conference, which will be held next week, will not reveal any more details on new devices either.
Gruber writes on his Daring Fireball blog: "But Apple did announce new iPhone hardware for a few years at WWDC: the 3G, 3GS, and 4. It's just that the schedule for the iPhone changed. So I think it's not so much that they wouldn't announce a new iPhone or iPad during the WWDC keynote, but simply that they don't yet have new iPhones or iPads to announce."
Expectations
Fuseware CEO Mike Wronski says the introduction of the low-cost iPhone was inevitable, as Apple is looking to diversify its customer base and grab revenue from the lower end of the market. "A sub-$400 iPhone is a must, but to really compete in emerging markets, Apple needs to slash its profit margins and find hardware suppliers that can offer similar phone features for a much lower cost."
He adds that one can expect the same app market and similar hardware and software design, with trade-offs being made on processing power, storage space and camera quality.
On Monday, Apple Insider reported that Morgan Stanley's Katy Huberty estimates the price of a low-end iPhone would come in at just under $350.
Entering the market
Wronski says the budget market has grown substantially as consumers become more price-conscious and emerging markets become more connected. "I think if Apple can successfully deploy a budget phone that does not compromise on its principles of quality and design - it has a winner on its hands."
The budget iPhone will have a limited release at first, says Wronski, with the focus on emerging markets. "This puts Apple into direct competition with Samsung and Nokia's mid-range phone products. However, this is great news for the consumer, since this will result in faster innovation and further drops in technology prices in the future."
He says when one combines the burgeoning middle class with the aspirational value of owning an iPhone in SA, there is a definite market waiting to be tapped into.
"The smartphone market has grown to about 12 million devices from 10 million one year ago, with BlackBerry holding 42% of that share. The lower end smartphone market is just waiting to be disrupted, and Apple may just be the ideal company to do this," says Wronski.
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