iPhone Releases Cheaper Version

The rumors about the new cheaper iPhone are out the price will range from $99-$199 with a plastic cover. Stung by its declining market share, Apple reportedly may offer a less expensive iPhone, a reversal of the strategy of its late CEO Steve Jobs, who believed in quality over quantity. If rumors are true Apple could release the cheaper iPhone in China and other developing markets. Eventually, however, the new iPhone could surface the U.S. in some form, given the surging popularity of Android.

According to the website DigiTimes.com and the The Wall Street Journal, which broke the story, says, “a less expensive version of its flagship device could launch later this year.” The new iPhone with plastic housing and parts from previous models would be released in the second half of this year.

The company co-founded by Steve Jobs has been working on a more affordable smartphone from at least February 2011. However, negotiations have not yet been made public, and Natalie Kerris, a spokeswoman for Apple, declined to testify on the matter, although the company would have discussed your plans with at least one of the leading wireless operators in the United States.

Shares of Apple, which have slumped more than 13% in the past six months, were off by less than 1% in Wednesday morning trading, indicating that investors may be skeptical about whether a cheaper iPhone is the answer the company’s perceived woes. It’s easy to understand why.

New iPhones without a contract for Internet start at $649. However, Apple continues to sell older models at discount prices. Apple, for its part, has been fighting to regain share by offering new products such as the iPad mini. The company, though, can’t seem to catch a break from Wall Street lately.

Investors are probably concerned that Apple might sacrifice profit margins as it chases lower-end consumers. A cheaper iPhone, however, might help the company boost sales in emerging markets, where smartphone use is continuing to rise at a faster rate than in the developed world. It’s unclear if these sales will offset stagnant demand in mature markets. Jobs was known for an almost maniacal focus on the quality of his products.
I personally think the company needs to retain that tradition of quality and let other products find their way to make their products more affordable.

In my opinion the plastic iPhone not only will lower the quality standards, it will take the away from Steve Jobs vision. Over all the company needs to retain a tradition while at the same time finding ways to make its product more affordable.

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