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Most readers would rub their eyes after reading the headline. Apple is notorious for pricing their products highly when compared to the other companies... Apple Launching Cheaper iPhone to Compete with Android

Most readers would rub their eyes after reading the headline. Apple is notorious for pricing their products highly when compared to the other companies in the industry. However, the Cupertino giant has revealed plans to launch a cheaper iPhone in developing markets. The company has been facing increased competition from devices which run on Android, as they are priced lower and affordable for a larger segment of the audience.

Apple Launching Cheaper iPhone to Compete with Android

Going Against Steve Jobs’ Ideology

Steve Jobs, the founder of Apple, had been strict with the policy of pricing products at a certain level. He was a staunch believer in quality over quantity and had followed the principle up till his death. Now it seems the people in charge have decided to break away from Jobs’ principle and adopt a new policy. Of course, circumstances change over time but it has been just over a year since Jobs passed away. Since then, Apple has faced a number of setbacks.

Sales in China Encouraging

Apple recently revealed that it was selling a record number of iPhones in China. Previously, the market had been dominated by Asia-based companies like Samsung and Nokia. Yet, the launch of the iPhone 5 saw two million units of the smartphone being sold within a week. That is at par with some of the leading markets for Apple’s products, particularly in the developed countries. Hence, it shouldn’t come as a surprise that Apple wants to tap into the growing demand in developing markets.

Growing Competition a Constant Worry

While the sales in China have been surprising and more than Apple itself expected, it is true that the growing competition in the market has been a constant source of worry for the company. Till now, Apple has been steadfast with its pricing policy, refusing to budge even when the market called for it. Their focus remained on providing users with the best possible experience rather than making the devices affordable.

Price Expected to be $99 to $149

Since the news broke out that Apple is planning a cheaper iPhone, people were wondering how far they are going to lower the price. After all, what Apple considers cheap is quite expensive for most consumers and companies in the market. Thus, it was surprising when a report revealed that the price of the cheaper iPhone is expected to be from $99 to $149. In that price range, one could expect Apple to run away with the market share the world over.

According to the reports which have surfaced, Apple is considering changing the material they use for making the newer iPhones. The iPhone 5 is made from aluminum while the previous one was made of glass. For the cheaper version, they might elect to go along with plastic polycarbonate. That would reduce the cost of making the iPhones considerably, enabling Apple to lower the price.

There may be some before anything materializes while there is the chance nothing does. The newer iPhone would be in the league of the iPad Mini, a smaller and cheaper version. A release by the end of 2013 is being rumored but only Apple knows when it will happen.


[Images via tapscape & afr]