Apple Making Cheaper 8GB iPhone 4


A report indicates that Apple has ordered its Asian manufacturers to produce a cheaper 8GB iPhone 4. Currently, the iPhone 4 is Apple’s flagship smartphone and by releasing a cheap iPhone 4, Apple will break in to an entirely new market segment that it has previously kept itself out of.

According to a Reuters report, the 8GB flash memory of this cheap iPhone 4 is being developed by a Korean company whereas the current 18GB and 32GB iPhone 4 memory is manufactured by Toshiba and Samsung. By reducing the memory, Apple can cut down the cost on the whole unit because as per one estimate, the on board memory accounts for 15% of the whole manufacturing cost of one iPhone 4 unit. Right now, the iPhone 4 16GB and 32GB cost $649 and $749 respectively. We know that this is quite high for most people. So by releasing a cheap iPhone 4 that will probably be priced around $250-$300, Apple will try to capture a market that is currently dominated by most mid-range Android smartphones.

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, which usually cost $150-200

Advertisements
This entry was posted in iPhone and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s