Apple Inc. (AAPL) Low Cost iPhone Production Speeds Up [REPORT]

iphone 8 apple stockElisaRiva / Pixabay

Apple Inc. (NASDAQ:AAPL) is estimated to roll over its new low cost iPhone very soon as the major suppliers have started shipping the components, which includes 28-nanometer processors from Taiwan Semiconductor manufacturing company (TSMC), says a report from Appleinsider.

Apple Inc. (AAPL) Low Cost iPhone Production Speeds Up [REPORT]

TSMC is not the only supplier to supply the parts to Apple Inc. (NASDAQ:AAPL). Largan Precision is expected to supply an 8-megapixel snapper for the phone. Foxconn,  another supplier to Apple Inc. (NASDAQ:AAPL), is expected to ship battery modules and the innermost frame. Tailflex Scientific is supposedly supplying Apple Inc. (NASDAQ:AAPL) with flexible circuits for phones, according to details in the Commercial Times.

Reports Fueling Expectations

The report said that the suppliers are shipping various parts of the phone, and “intensive delivery” is in the process at present. Other suppliers whose name was mentioned in the report were Kinsus, SPIL, Texas Instruments, Renesas Electronics, and Chipbond.

The iPhone maker is expected to launch a huge number of handsets in the second half of the year, which will counter-balance the fact that Apple Inc. (NASDAQ:AAPL) is not launching any major new product in the first half of 2013. The availability of the low priced iPhones could be possible in August.

According to another report, the low priced iPhone will have an almost similar color saturation as in the official “Bumper” cases of iPhone4. The color options available at the launch may be black, white, pink, blue and orange.

Expected Price of Apple Low Cost iPhone

As per the market experts, the price of the low cost iPhone will be kept at $399 minus the service contract, which will not affect its gross margins. The low cost iPhones can be a good option for those customers who do not want to get in a two year cellular service contract to subsidize the price of new handset.

Apple will most probably speed up its production soon if it has to launch the low priced iPhones in the second half of the 2013.

What to Expect from Apple

According to Topeka Capital analyst Brian White, the new low-cost iPhone will be available in multiple colors and will be launched before the iPhone 5S.

The new low priced iPhone will be mainly targeted towards emerging markets. There have been a lot of discussions over the price of these mini iPhones. According to some experts, the low priced iPhone will be a mid range priced device, which will present a battle to the low priced Android devices in the emerging markets.

According to White, Apple Inc. (NASDAQ:AAPL)’s iPhone 6 will not be available before next year, and the screen of the device can be larger than iPhone 5’s 4 inch screen.

 

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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