Budget iPhone 5 'to launch soon' Budget iPhone 5 'to launch soon' The budget version of Apple's latest iPhone will cost
roughly $330 (£220), priced in order to appeal to
young, middle class consumers in countries like China
and India.
The claims about the price and the imminent release
were made on the Japanese website Macotakara,
following on from earlier reports about Apple plans
for a cheaper phone.
In January it was reported that the planned new phone
will resemble the iPhone 5 from the front but Apple
will replace that handset's aluminium body with a
cheaper plastic casing.
Jeremy Horwitz, of iLounge, claimed that "reliable
sources" told him in detail what the new device will
look like. He said the new device will have a
"retina" display and feature Apple's new Lightning
connector for charging and syncing.
He wrote: "One of our sources claims that Apple's
iPhone prices remain too high for most mainland
Chinese customers - the iPhone 5 hardware alone
starts at $849 there, versus the iPhone 4 at $500, in
a country where the average annual salary is around
$3,000 per person).
"The source has said that mainland Chinese iPhone 5
sales are already tapering off as a result of the
pricing, which is higher than in Hong Kong. A budget
iPhone model would help sales in populous but
underdeveloped countries to grow."
Horwitz also says that Apple will release an upgraded
iPhone 5S, with an improved rear camera, perhaps in
July. He says his sources claim a fifth generation
iPad and a new iPad mini - with 'retina' display -
will be released in October.
Reports elsewhere suggested that Apple is preparing
to add a new iPad model, with 128GB of storage, some
time this year.
In January, Apple announced its record profits in its
quarterly results but saw share prices fall amid
analysts' disappointment over iPhone sales. Tim Cook,
Apple's chief executive, said iPhone 5 supply had
been "very constrained for much of the quarter".
The company announced a record 47.8 million iPhones
sold but Wall Street expected more. A cheaper version
of the device is seen as essential by some analysts,
particularly if Apple is to make inroads into the
growing Chinese market.
In response to the results, Trip Chowdhry, an analyst
with Global Equities Research, said: "Apple will need
to innovate. For Apple to renew growth they need to
come up with new devices."
It appears that Apple is already thinking along the
same lines. The earnings report reveals a 32 per cent
increase in Apple's research and development budget
in the final quarter of last year. Apple increased
its spending on R&D to $1 billion, an increase of
$252 million, compared with the same quarter in the
previous year.
Apple's filing said: "The Company continues to
believe that focused investments in R&D are critical
to its future growth and competitive position in the
marketplace and are directly related to timely
development of new and enhanced products that are
central to the Company's core business strategy.
"As such, the Company expects to make further
investments in R&D to remain competitive."
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