Budget iPhone predicted to outsell iPhone 5S

The heavily rumoured budget iPhone is predicted to outsell the high-end flagship iPhone 5S when they launch.

According to a research note from UBS analyst Steve Milunovich, the budget iPhone will be extremely successful from the off, bettering the iPhone 5S.

Due to slowing growth in the high-end smartphone sector, many industry watchers suggest the budget iPhone will not only be a raging success but is a necessity for the market.

Milunovich predicts that the budget iPhone, which he calls the iPhone M (which may stand for iPhone mini), will sell 92 million units by the end of the 2014 fiscal year. This equates to 53 per cent of Apple’s total iPhone sales for the year, completely outranking the iPhone 5S.

“In our model, the iPhone M is dilutive not only to gross margin but to gross profit dollars,” said Milunovich. “The impact of the M depends on assumptions. We estimate the 4/4S, which the M would replace, currently have a gross margin of 55 per cent because of the low cost of older components. We also assume the gross margin of the M will be near 32 per cent. And we estimate shipment of 92 million iPhone M units in F14.”

Budget iPhone Features
The budget iPhone 5C is expected to launch on September 18 alongside the iPhone 5S, with both handsets running iOS 7.

Tipped to launch in six to eight colours, the budget iPhone will be made from polycarbonate plastic and have similar specs to the current iPhone 5 if latest rumours are true.

Supposedly featuring the same 4-inch 1136 x 640p resolution screen with a 326ppi image density, the mid-range Apple smartphone will have an Apple A6 processor.

In the rear there will be an 8-megpixel iSight camera coupled with a 1.2-megapixel FaceTime snapper.

Next, read our iPad 5 release date, news, rumours and price piece.

Via: Barrons

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