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iPhone 5S and budget iPhone to launch this summer?

Sam Loveridge

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iPhone 5
iPhone 5

Apple could release both the iPhone 5S and budget iPhone handset this summer, breaking its usual annual launch pattern.

According to a note acquired by BGR, a RBC Capital Markets analyst suggest that information from supply-chains suggest we could be seeing both handsets as soon as June.

“Our supply-chain checks indicate that AAPL is working to launch multiple new phones in the June/July time-frame this year,” wrote RBC Capital Markets analyst Amit Daryanani in a research note. “Specifically, [Apple] will launch the iPhone 5S and a more affordable but lower-end iPhone at the same time, in either late CYQ2 or early Q3.”

Recent rumours have suggested that the iPhone 5S would only offer small improvements on the iPhone 5, but the upgrade would pack a higher-end processor and an improved camera with more megapixels than the iPhone 5’s 8-megapixel offering.

The heavily-rumoured budget iPhone has been tipped to cost around $200 or £125, with the classic metal case design of the Apple smartphone scrapped for a plastic backed handset and the specs sheet lowered to reflect its lower price entry-point. However, Daryanani’s checks have unearthed some new features of the cheap iPhone, including its screen size.

“The low-end iPhone will have the same 4-inch form factor as the iPhone 5 but will have plastic casing and no retina display. With a lower price-point, [Apple] will be able to target a growing and important part of the Smartphone market (sub-$400 [£250] price-band).”

Rumours of a cheaper iPhone are still strong, despite Apple’s Senior Vice President Phil Schiller rejecting any ideas that Apple would be producing a budget handset.

“Despite the popularity of cheap smartphones, this will never be the future of Apple’s products,” he said in an interview in January. “Every product that Apple creates, we consider using only the best technology available.”

Do you think a cheaper iPhone would be a good investment for Apple? Do you find that smartphone prices are getting out of hand? Give us your thoughts via the TrustedReviews Facebook and Twitter feeds or the comments below.

Nate Ebner

March 23, 2013, 12:42 pm

There are no margins for cheap devices. It is what has been killing Nokia, and Motorola before them. Despite having massive market share, if you look to compete on price, it's a never ending battle, and ultimately not worth your time.
The costs for higher end components, aren't significantly more than their cheaper counterparts. Certainly not cheap enough to warrant a big drop in price, and so it is all the profit that gets eaten up.

Apple's position in the computer, smartphone and tablet world, is all based in its brand appeal and premium products.

They are all overpriced, but all desirable, and so they sell well. Lowering the bar to entry, destroys some of their appeal, and would damage sales of the much more expensive models, as some customers went with the cheaper alternatives, and some leave the 'damaged' brand altogether.

It would be a ludicrous move for them, and goes against their entire business strategy, and so I'd be shocked if they shot themselves in the foot like this.

Martin Hansen

March 24, 2013, 4:34 pm

I would say it depends on price and hardware for the Iphone to be an success

if we are talking marked shares they could sell a lot more if they took 25% of the total selling price. and still maintain their brand image.

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