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Why Apple’s cheaper iPhone might be mid-range, not bargain bin

BGR.com
Apple Cheaper iPhone Analysis

Apple Cheaper iPhone Analysis

We’ve been hearing rumors about Apple releasing a cheaper iPhone for a while, but J.P. Morgan analyst Mark Moskowitz this week has made a compelling case that a lower-cost iPhone will likely be a mid-range device that sells in the $350 range without subsidies and not in the $150 bargain-bin range with devices like the Nokia Lumia 521. Per Barron’s, Moskowitz writes that the success Apple has enjoyed with the iPad mini so far has shown the company that it can significantly expand its reach if it’s “willing to sacrifice near-term gross margins” in exchange for long-term dominance of the market. Although there aren’t too many well-known smartphones selling in the $350 range, Moskowitz notes that “Apple usually creates new demand when it steps into a price band” since “the $300-400 price range for tablets did not have much demand… before the launch of the iPad mini.”

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