Pegatron Chairman Says Lower-Cost iPhone Will Not Be Cheap

Last month, J.P. Morgan analysts made their case for why Apple will position its rumored lower-cost iPhone as a "mid-end" device priced in the range of $350-$400 without subsidies, addressing a relatively sparse segment of the market while still maintaining the ability to offer a quality user experience.

Mac Otakara now points to a pair of reports from the China Times including claims from Pegatron chairman T.H. Tung supporting that notion. Pegatron has been said to be the primary assembler for the lower-cost iPhone, with Foxconn focused on the iPhone 5S.

lower_cost_iphone_colors

Rendering of lower-cost iPhone in colors from iPhone 4 bumpers (Source: Mac Otakara)

According to the first report [Google translation] from the China Times, Tung addressed the iPhone at a meeting of the company's shareholders, expressing his displeasure with reports referring to the lower-cost iPhone as "cheap" and noting that the "price is still high". Tung apparently believes that attaching the "cheap" description to the lower-cost iPhone gives the impression of a low-value feature phone rather than the full-featured smartphone it will actually be.

A second report [Google translation] quotes Tung as saying that Pegatron's factories remain busy with nonstop production. The company has been reported to be undertaking a significant expansion of its workforce for the second half of this year, presumably to support production of the lower-cost iPhone. China Times indicates that Pegatron is ramping up for shipments of 13-15 million units of the device during the third quarter.

Apple's lower-cost iPhone is expected to launch around the same time as the iPhone 5S, with September being the most commonly cited timeframe. The lower-cost iPhone is said to be very similar to the iPhone 5/5S but with a slightly thicker plastic shell that will be available in a number of colors.

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Top Rated Comments

Chuck-Norris Avatar
143 months ago
When does apple price anything cheap?
Score: 15 Votes (Like | Disagree)
mattopotamus Avatar
143 months ago
Simply because Apple need to compete in the low to mid cost Android market for iOS to remain competitive.
selling a phone for $500 is not competing with low cost android phones no matter how you spin it.

Another $150 gets me the real thing, and if someone can afford $500 they can likely afford $650
Score: 8 Votes (Like | Disagree)
Walter White Avatar
143 months ago
Simply because Apple need to compete in the low to mid cost Android market for iOS to remain competitive.

Logic fail.
Score: 7 Votes (Like | Disagree)
NotAdvisable Avatar
143 months ago
I still think it'll be in the $200 - $300 rage if Apple want to actually be competitive; they'd be able to go places where the current iPhone pricing scheme can't.
Score: 7 Votes (Like | Disagree)
Moonjumper Avatar
143 months ago
Lower cost was never going to be cheap. But good value doesn't have to mean cheap.
Score: 6 Votes (Like | Disagree)
mdelvecchio Avatar
143 months ago

Yeah baby. Plastic for everyone. Pigs are flying and the new Cheap. Sorry, Plastic iPhone will be an innovative magical marvel for the industry.

Tim Cook is brilliant.

you do realize youre responding to a RUMOR, right? they dont all come true.

and Cook is an amazing CEO of the most biggest, most profitable tech company. i dont think he's sweating the analysis of Some Dude on the interwebs.
Score: 5 Votes (Like | Disagree)