Apple’s Tim Cook hints at cheaper iPhone

Apple is currently experiencing an onslaught of Android devices thanks to manufacturers ramping up production, manufacturers such as Samsung, LG, HTC and Sony. Even so, Apple has still remained at the top of the trend and even though they are no longer the leader in terms of sales, they are the main company directing the winds of change in the industry.

The Cupertino based company has been working behind closed doors on the next version of the iPhone which is set to be released sometime this summer. So far the company has remained quiet about it’s plans but many news organizations such as WSJ and All Things D have reported that Apple is working on three prototypes even though they do not suspect all will make it from the R&D department.

According to the reports, there is the regular iPhone 5, a QWERTY slider and finally a cheaper model. Thanks to Apple’s Tim Cook, the cheaper version has all but been confirmed, not for launch, but at least in consideration.

Here are the words of Tim Cook paraphrased by Bernstein Research analyst Toni Sacconaghi who had the pleasure of sitting down with the CFO concerning the rumors of a cheaper iPhone:

While Tim stopped short of explicitly stating that Apple would pursue a lower price iPhone, he did state that Apple was working hard to “figure out” the prepaid market and that Apple didn’t want its products to be “just for the rich,” but “for everyone”; he also stated that Apple “understood price is big factor in the prepaid market” and that the company was “not ceding any market.” Cook noted that Apple executives – including himself – had spent “huge energy” in China, noting that it is “a classic prepaid market.” He further noted that the handset distribution model was poorly constructed and that Apple would look to “innovate” and do “clever” things in addressing that market.

What does this mean? Well it is clear that Apple is clear on their intentions of challenging Android, Nokia and Blackberry on all levels, and not just the high-end line.

Source: Engadget

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