People often point at Samsung and their crazy sales numbers and wonder why Apple doesn’t have the same sort of figures. The answer is simple, Samsung’s product portfolio is much more broad, covering quite a few price points. Many of their products might not even make the company any money, while others have high double digit margins.
Folks at GSMInsider have discovered two sketchy photos on Chinese microblogging site Sina Weibo, which they claim are photos of Apple’s rumored low-cost iPhone.
Americans have it easy. They think high end smartphones cost $199 because they’re oblivious to the fact that they’re signing two year contracts. The same can not be said in many other parts of the world, where you buy a SIM card from one store and your device from another. For those type of people, forking over $700 for a high end device is seen as commonplace.
Apple sure designs a lot of beautiful hardware and software, but when it comes time to do the dirty work of putting things together, they call on Foxconn to do their bidding. That’s slowly starting to change though. According to The Wall Street Journal, Apple started working with a new firm called Pegatron back in 2011 on small scale iPhone and iPad mini production. Now it looks like Pegatron may become the “primary assembler of a low-cost iPhone” slated to launch later this year.
Our favorite Taiwanese supply chain and rumor website that sometimes gets thing right, sometimes gets things wrong, is saying that Apple will release two iPhones this year. One will be a “revised version of the iPhone 5”, which is a fancy way of saying iPhone 5S, and the other will be a “low-cost iPhone model”. Said cheap iPhone will have similar specs to the iPhone 4S, but it’ll have a downgraded screen and processor.
Pegatron, Apple’s manufacturing partner in China, has said that it will be increasing its workforce by a whopping 40% in the second quarter, according to Reuters.
This has sparked off speculations that Pegatron is probably gearing up to assemble Apple’s cheaper iPhone.
If you’re a wireless operator, you want to sell Apple’s iPhone. It just makes sense. People want it, so you give it to them. You’d think it’d be that easy, but unfortunately it’s not. According to Bloomberg, there are roughly 2.8 billion people who could potentially be iPhone customers, but the way Apple does business right now prevents that from happening.
Although Apple dominates the high-end smartphone market, its absence at lower price points has given a huge opportunity for Android OEMs to grow. At the same time, there’s a lot of worry about Apple’s profit margins declining year-over-year, and with the rumored entry into the low-end market, investor’s fears would multiply further.