Jul 17

AllThingsD, reports that  production ramp up of the next generation iPhone should begin around the end of this month, ahead of an expected fall introduction that could include a second, lower-cost version of the device. Jefferies analyst Peter Misek said “that iPhone production ramp-up will follow one that’s already under way for Apple’s long-rumored lower-cost iPhone, a device he figures the company will price somewhere between $300 and $400 — without a subsidy“.

He estimates production plans at 25 million to 30 million units, split pretty much evenly across the 5s and its new lower-cost sibling. And he said the new entry probably won’t be competitive with the truly low-end handsets popular in emerging markets.

Which is an interesting theory. There isn’t as much room as there used to be in the upper and lower reaches of the smartphone market. But there’s plenty of room for growth in the middle.

Apple has targeted with mid-tier products to great effect in the past, such as the iPad Mini, people said it will be to expensive to attract the budget-conscious consumers, but they both proved wildly popular, establishing a new “mid-end” price band between the market’s high end and low end.

Source [AllThingsD via MacRumors]

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