Apple Working on Less Expensive iPhone to Compete Against Affordable Android Smartphones [REPORT]

Since the launch of the first iPhone, Apple has always been claimed to be the manufacturer of high-end smartphones, but, there is a rumor going around that says that this case will not last for long.

According to recent reports, Apple might be releasing a cheaper version of the iPhone alongside its flagship model, similar to how the company launched the iPad Mini besides launched the full sized iPad 4.

As per a recent Wall Street Journal report, the Cupertino based company is working on a cheaper iPhone by using cheaper build materials. The report claims that the alternative to the existing iPhone, which could have a plastic body rather than aluminum. There is a possibility of Apple to use recycled parts from older models.

Following this, a Bloomberg report has agreed that Apple is in the process of releasing a low end and cheaper iPhone with a plastic or polycarbonate body. According to the report, the price of the cheaper iPhone could fall between $99 to $149. Moreover, lower cost not only means less expensive parts but also hints at a smaller handset than its existing model - iPhone 5, suggest the report.

Why this change in strategy?

So far, Apple has been following a strategy of launching high-end and premium priced iPhone every year since 2007 with annual upgrade. In an attmept to appeal to more budget conscious consumers, Apple has been selling the older models of iPhone at discounts before discontinuing them.

For instance, iPhone 5, the latest version of the smartphone is selling starting at Rs 45,500 and the price of the previous model - iPhone 4S has been slashed to Rs 38,500. Moreover, this price varies depending on the internal storage and the maximum price for the iPhone 5 goes up to Rs 59,500, which is too high and hence, prompting the consumers to snap to more affordable Android smartphones.

When it comes to Q3 2013 global smartphone shipments, 75% accounts to Android while only 15% accounted to iPhone. Further, Google has claimed that over 500 million Android smartphones have been activated since the release of the operating system in 2008, whereas, Apple has sold only 271 million iPhones since 2007.

Considering all these figures, it seems like Apple is under a high risk when it comes to markets outside US and Europe as consumers in countries including India, China and others as the iPhones are quite expensive.

Hence, a less expensive iPhone should be a welcome in those countries where price is one of the major deciding factors of buying a smartphone.