iPhone News Updated

Apple to Unveil Cut-Price iPhone

Apple could introduce a cheaper version of its popular iPhone as soon as Monday, sources tell The Financial Times. The price drop will either be $50 or $100 off the current low-end price of $199, with the lower price being subsidized by AT&T’s communication service contract.

“It’s either a $50 or a $100 cut,” Morgan Stanley analyst Kathryn Huberty said. A consumer survey conducted by Morgan Stanley reveals that a $50 price cut would increase demand by 50% and a $100 price cut by 100%. According to Gartner, a research group, Apple sells 11% of the world’s smartphones, compared to Nokia’s 41% and Research in Motion’s 20%.

Apple declined to comment on the rumors. As the FT story notes, Apple’s developer conference, which begins on Monday, is usually marked by one or two major announcements. According to sources, the new iPhone will likely begin production in July, and run on the Apple’s upgraded operating system software, which will have the ability to cut and paste text and search for information inside multiple applications at the same time.

The lower price will certainly have an impact on Apple’s market share. Last week, AT&T boss Randall Stephenson said that variable pricing for iPhone data plans would arrive eventually, with heavy data users being charged more.

[Thanks: http://www.mediapost.com]

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