Apple Working on a Cheaper iPhone

As the expected date of the iPhone 5 launch nears, the frequency of new rumors about the next iPhone has also increased. Every day, there is a new rumor which either speculates about either the specifications of the iPhone 5, or its launch date. However, this is new – Reuters posted that Apple is working on an inexpensive variant of the iPhone 4, which will ship alongside the iPhone 5.

Apple will be using the same strategy it adopted with the iPhone 4 and iPhone 3GS. The cheaper version of the iPhone 4 will come with 8 GB of internal storage. According to their sources, the flash drive will be manufactured by a Korean company. not Samsung, which did it for the iPhone 4.

The Apple iPhone 4 may be the most popular smartphone in the U.S., but the high price has deterred most smartphone users in the emerging markets and developing nations from buying the iPhone. With a cheaper version of the iPhone, Apple may have to take a slight hit on its huge margins, but it could make up on profits with increased sales. A cheaper iPhone could also help Apple beat Android, which is dominant at the budget end of the smartphone market.

Apple is increasingly looking to Asia for further growth in the smartphone market. It was recently in talks with China Mobile, which has close to 600 million subscribers in China.

While the cheap iPhone 4 will likely have specifications similar to the iPhone 4, the iPhone 5 is expected to ship with a larger display, a processor upgrade and 1 GB RAM. It will also sport an 8 MP camera, according to rumors.

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