Apple's Lower-Cost iPhone As a 'Mid-End' Device

AllThingsD shares details on a new report from J.P. Morgan analysts Gokul Hariharan and Mark Moskowitz, who unsurprisingly argue that Apple's rumored lower-cost iPhone will still be a "mid-end" device rather than competing against the true low end of the smartphone market. The analysts point to Apple's previous introductions of the iPod nano and iPad mini as cheaper versions of their parent products that were still significantly more expensive than low-end competitors due to Apple's refusal to sacrifice quality for the sake of price.

Echoing some previous rumors, Hariharan and Moskowitz suggest that Apple's lower-cost iPhone is likely to cost $350-$400 without subsidies, significantly cheaper than the iPhone 5 that starts at $650. The analysts point out that such a device would come in at a relatively sparsely-populated midrange of a pyramid that sees strong unit sales at the top and bottom but weakness in the middle.

Currently Samsung dominates this segment ($200-500 price range) with 35+ percent market share. [...] We believe Apple could take 20-25 percent of this market in the next 12 months (from almost no market share currently), if it prices a lower-priced product at $350-400 levels.

jpmorgan_smartphone_price_pyramid
On a separate note, Digitimes is reporting today that Apple's lower-cost iPhone will be specifically targeted at emerging markets and will initially launch in limited volumes in order to test interest in the device. The report claims that Apple is expected to deliver only 2.5-3 million units during the device's first quarter of availability.

While Apple almost certainly has interest in bringing such a device to emerging markets, it seems more likely that Apple will offer the device on a broader basis in order to appeal to consumers in the numerous markets where subsidies are not common. Even the United States is seeing pushback against subsidies to some degree, with prepaid carriers gaining customers while also beginning to offer the iPhone, and even major carriers like T-Mobile shifting their strategies to end packaged subsidies and instead break out phone costs on separate payment plans.

Related Forum: iPhone

Top Rated Comments

Greg. Avatar
107 months ago
is there a sexual hint in this or is it just me?

Just you.
Score: 19 Votes (Like | Disagree)
M-O Avatar
107 months ago
'Mid-End' makes no sense.
Score: 16 Votes (Like | Disagree)
needfx Avatar
107 months ago
is there a sexual hint in this or is it just me?
Score: 13 Votes (Like | Disagree)
ArchAndroid Avatar
107 months ago


This is presumably what will happen :eek:
Score: 8 Votes (Like | Disagree)
needfx Avatar
107 months ago
Just you.
I need to stop posting on MR & get out more
Score: 7 Votes (Like | Disagree)
ka-spot Avatar
107 months ago
nice.. Europe will enjoy the new cheap iPhone :)
Score: 7 Votes (Like | Disagree)

Top Stories

Pro Display XDR Yella

Apple Working on External Display With Built-In A13 Chip

Friday July 23, 2021 9:37 am PDT by
Apple is developing an external display that includes an A13 chip with Neural Engine, according to a new rumor from 9to5Mac. The A13 chip with Neural Engine would presumably serve as an eGPU, though details are light at this time. Having a CPU/GPU built into the external display could help Macs deliver high-resolution graphics without using all the resources of the computer's internal chip....
maxresdefault

Apple Music to Livestream Premiere of Kanye West's New Album 'Donda' on Thursday

Wednesday July 21, 2021 1:49 am PDT by
Apple Music on Thursday will host a global livestream for the premiere of Kanye West's tenth studio album, titled "Donda." The sold-out event will take place at the Mercedes-Benz Stadium in Atlanta, Georgia, and Apple Music's livestream will start at 8:00 p.m. Eastern Time. The livestream was revealed in a Beats Studio Buds ad that aired during the NBA Finals. The ad features U.S. track...
airpods 3 gizmochina Feature

AirPods 3 Rumored to Launch Alongside iPhone 13 at Expected September Event

Friday July 23, 2021 12:54 am PDT by
The third-generation AirPods will likely launch at the same event revealing Apple's upcoming iPhone 13 lineup, according to a report from DigiTimes, which makes the claim citing sources familiar with the matter. The report as a whole echoes previous reporting that production of the third-generation AirPods will kickstart in August, meaning a launch shortly after can be easily expected. DigiTi...
idos 2 app ios

Apple to Pull 'iDOS 2' DOS Emulator From App Store

Thursday July 22, 2021 3:22 pm PDT by
iDOS 2, an app designed to allow users to play classic DOS games, will soon be pulled from the App Store, the app's creator said today. According to iDOS developer Chaoji Li, he tried to submit an iDOS update with bug fixes to the App Store, but was told that the update was rejected because it violated the 2.5.2 App Store guideline that says apps cannot install or launch executable code.Durin...
iPad mini pro feature

Next iPad Mini Won't Feature Mini-LED Display, Claims Display Analyst

Friday July 23, 2021 8:07 am PDT by
Yesterday, DigiTimes claimed that the upcoming iPad mini will feature a mini-LED display, but now, display analyst Ross Young is going at odds with that report, claiming that while the updated iPad mini continues to be on track for a release this year, it won't feature a mini-LED display. Young says he "confirmed" with Radiant Opto-Electronics, who DigiTimes claims would provide Apple with...
AirPods Pro Beta Firmware

AirPods Pro Beta Firmware Now Available

Wednesday July 21, 2021 6:50 am PDT by
Upcoming AirPods Pro firmware updates are now available to Apple Developer Program members as beta versions. AirPods Pro firmware beta one features FaceTime Spatial Audio and Ambient Noise Reduction. Custom Transparency mode, including Conversation Boost, was initially expected to be included in the beta but appears to have been delayed for a later version. Apple made the announcement...
iPad mini pro feature

Next-Generation iPad Mini Will Reportedly Feature a Mini-LED Display

Thursday July 22, 2021 9:03 am PDT by
Apple is widely rumored to be planning a new iPad mini with a significant redesign, including a larger 8.5-inch to 9-inch display with slimmer bezels, a Touch ID power button instead of a home button, a USB-C port instead of a Lightning connector, and more. According to a paywalled preview of a DigiTimes report today, the sixth-generation iPad mini will also feature a mini-LED display:BLU...
discount m1 macbook yellow

Deals: Shop Record Low Prices Across Apple's Full MacBook Pro and MacBook Air Lineup (Up to $499 Off)

Friday July 23, 2021 8:23 am PDT by
Apple's MacBook Pro and MacBook Air lineup is seeing all-time low discounts across the board today, including the 2019 16-inch MacBook Pro, 2020 13-inch MacBook Air, and 2020 13-inch MacBook Pro. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. 13-Inch M1...
ios wifi settings

Apple Confirms iOS 14.7 Fixes WiFi Bug and Many Other Vulnerabilities

Wednesday July 21, 2021 11:38 am PDT by
Following the release of iPadOS 14.7 this morning, Apple has shared details on the security updates that are included in iOS 14.7, iPadOS 14.7, macOS Big Sur 11.5, watchOS 7.6, and tvOS 14.7, all of which came out this week. Notably, Apple's documentation confirms that the iOS 14.7 and iPadOS 14.7 updates address a WiFi-related vulnerability that could impact iOS devices when joining a...
macOS Big Sur Feature Orange

Apple Releases macOS Big Sur 11.5 With Podcast App Updates and Bug Fixes

Wednesday July 21, 2021 10:15 am PDT by
Apple today released macOS Big Sur 11.5, the fifth major update to the macOS Big Sur operating system that launched in November 2020. macOS Big Sur 11.5 comes two months after the release of macOS Big Sur 11.4. The new ‌‌‌‌‌macOS Big Sur‌‌‌‌ 11.5 update can be downloaded for free on all eligible Macs using the Software Update section of System Preferences. macOS Big Sur...