Tim Cook, Apple's Chief Operating Officer, said in a recent interview that his company isn't making smartphones "just for the rich." This and other comments suggest that Apple is going to release a low-priced version of the iPhone soon.
Cook is currently running Apple while CEO Steve Jobs is on medical leave, so he's certainly in a position to know the company's strategy.
He was speaking with Toni Sacconaghi from Bernstein Research when he dropped his hints about plans for an entry-level iPhone.
Most of Apple's smartphone units are sold to post-paid customers, who by the product at a discount in exchange for signing a multi-year service contract. However, Apple wants to get into the pre-paid market, a group that typically buys less expensive devices because there's no subsidy on the hardware.
As it stands now, this company's current model, the iPhone 4, sells for $200 with a service contract. Last's year's iPhone 3GS is still availablke from AT&T for $50 with contract.
What the Rumors Say
There were unconfirmd reports earlier this month indicating that Apple plans to release a smaller iPhone in June at a lower than usual cost. However, rival reports, also unconfirmed, said that the earlier ones were mistaken.
According to one source, a discount version of Apple's smartphone might have less storage capacity or a lower-resolution camera, but not a smaller screen.
Part of this initiative will supposedly be making the MobileMe online service free, and including the ability to store music and images in the cloud. This would enable Apple to release an entry-level smartphone with little on-board storage, as users would instead access all their files over the Internet.
Source: brighthand
