APPLE are set to release a cheaper version of the iPhone at around the same time as the iPhone 5, rumours state.
Sources described as being ‘familiar with the matter’ told Reuters that suppliers in Asia had begun working on an iPhone 4 with a smaller 8GB flash drive.
The cheaper version looks like it will be in fierce competition with the likes of Nokia in China, where people have lower amounts of disposable income.
Pat Becker, portfolio manager at Becker Capital Management, said currently the Finnish manufacturer captures the lower end of the smartphone market – a segment which Apple hopes to access.
Yuanta Securities analyst Bonnie Chang added: ‘Apple may want to push into the emerging market segment, where customers want to switch to low- to mid-end smartphones from high-end feature phones. But I think for an 8-GB iPhone 4, the price is hard to go below $200 (£121), so Apple will still need a completely new phone with low specifications for the emerging markets.”
Speculation about when the iPhone 5 will be released is still up in the air. A number of reports have suggested Apple is primed for a September launch date.
