Apple Will Release a Low Cost iPhone At The End of This Year

It’s been only a few months since the latest iPhone 5 was launched and released for the public and of course it is about time when we start hearing rumors and speculations about the next iPhone. It has become a tradition now, that short after an iPhone is release, everyone starts talking about the next one which usually comes after a whole year. This time we are bringing you an old rumor which we have been hearing before the release of the last few iPhone models, this rumor suggests that Apple might bring a low cost iPhone for all those budget conscious consumers all around the world who cannot afford to pay big dollars to enjoy the features of iPhone.

Apple losing market share to Android

Well, according to the new report, this time Apple is getting really serious about bringing such device. Basically, in the last year Apple has really lost so much of market share to the low end Android devices and that is why they want to gain that market share by releasing their own low cost smartphone. In early 2012, Apple had a market share of 23% in the smartphone industry but by the end of 2012, it fell down to 14.6%.

Currently, we don’t know how this low cost iPhone will look like, but the same rumor is suggesting that it will be made of polycarbonate plastic. Of course they cannot use aluminum made body because it is pretty expensive and other internal components will also be downgraded. There is a possibility that different components from older iPhone models will be used in this low cost iPhone. Now, in addition to that, If Apple wants to keep the prices down for this new device they will also have to sacrifice their high profit margins and keep them low in order to survive in this Android ruling market.

Basically, CEO Tim Cook is planning on using this new strategy to increase the reach of their products to more regions of the world and they also want to target the mid and low end user base. In addition to that, with the release of this new iPhone, Apple will definitely stop making older versions of the iPhone including iPhone 4 and 4S.