The cheaper iPhone would have half the price of iPhone 5

On March 22, 2013

The launch of a cheaper iPhone this summer seems more secure, but nobody has yet given the correct “definition” to the “cheap” word since we are talking about an iPhone, a product that is generally expensive. Those from Credit Suisse seeks to clarify things by saying that the cheaper iPhone from Apple would have half the price of iPhone 5, or about $329, if we consider that the iPhone 5 has a starting price of $650 in the U.S..

How much money could Apple make from a cheap iPhone? Credit Suisse believes that Apple can make a lot of money. Based upon a teardown analysis, lower priced phones could have margins lower than the current iPhone but in line with corporate gross margins at 38 percent.

At a lower price, many are wondering how it could bring profits to Apple, but those from Credit Suisse believes that Apple can achieve a gross margin of 38% on each cheap iPhone sales, which is just over $100. $329 is a small price to U.S., if you relate to Europe and convert it into euros, the principle remains the same.

The good thing is that many terminal operators would offer some free subscriptions, or they will sell at very low prices with others, so more people will have access to iPhones.