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  • What’s With All The Cheap iPhone Rumors?
Technology Articles > Cell Phones > iPhone > What’s With All The Cheap iPhone Rumors?

For the past week or two, rumors about a new and cheap iPhone have been circulating. The assumption is that Apple is working on a cheaper version of the iPhone that is easily accessible to all types of consumers. Is there any truth behind these rumors? Will Apple actually release a new phone and cut back iPhone pricing drastically?

What’s Apple been up to and why is Shanghai News misquoting Apple’s marketing director? Further, why are the Wall Street Journal and Bloomberg arguing over details? If you’re curious and confused, here’s some of what’s been going on.

Sources Can’t Get It Right

The rumor that Apple is working on a cheaper iPhone was largely debunked yesterday when the Shanghai News reported that Apple was not working on a phone of this type. The news team claimed that Apple’s marketing chief, Phil Schiller, told press that the rumors weren’t true. But, then Schiller turned around and told the press at large that he was misquoted. Today, Shanghai News has removed the story along with any quotes. So, now what? Are the rumors actually true?

Well, that’s still up for debate. Schiller has told press that Apple never goes after market share over quality, but that doesn’t mean that Apple can’t create a quality phone that’s less expensive than its current iPhone lineup. Were Apple to create a less expensive phone, the cost of that phone might run somewhere from $90 to $140. Why would Apple bother with a cheaper phone? The company already has a majority of the smartphone market. There are a few reasons why Apple might launch a cheaper iPhone.

Why A Cheaper iPhone Makes Sense

First, RIM is about to announce six new BlackBerry phones. Even though RIM has misfired in the past when releasing new phones, the company just may be able to pull back some of the market this time around. Is Apple running scared? Not at all; but Apple still wants to hang onto the portion of the market that may go after a less expensive BlackBerry. The other reason why a cheaper iPhone makes sense is that many consumers (especially in this economy) don’t want to pay more than $100 for a phone. Why wouldn’t Apple want a part of the market that is readily available and just waiting for a cheaper smartphone option?

As with any product that Apple is about to launch (or rumored to be working on), neither the press nor consumers will know any real details about the fabled cheaper iPhone until the company is ready to announce a new device in style. Apple never talks about its upcoming devices, which is part of the reason why rumors like this one are so popular.

It’s tough to say whether or not Apple is really working on a new iPhone, but, if you’re looking for a new phone, I’d hold off for upcoming releases from RIM and, potentially, Apple. It’s not likely that Apple will cut back on quality or features in order to create a new phone, so you don’t have to worry about that either – after all Apple does have a reputation to uphold!