Apple is already developing low cost iPhones to widen the products market.
American Technology Research analyst Shaw Wu believes Apple is reacting to the market pressure to make such a move. Historically, he cites the manner in which Apple introduced the iPod mini and iPod shuffle to widen the addressable market for its media player range.
“Apple needs to round out its iPhone product line at lower price points (similar to iPod) if it expects to replicate the success of its iPod with sales of 100 million units,” the analyst told clients.
The analyst also claims to be “picking up” news of: “lower cost iPhone prototypes for release at unspecified future dates”.
source: MacWorld
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