iPhone News Updated

Apple Sure to Release Just One iPhone 5 Version: 10 Reasons Why

News Analysis: Reports suggest that Apple will release two versions of the iPhone 5. But that seems unlikely, given the company’s recent history to sticking to the high end of the market.

On June 27, Deutsche Bank analyst Chris Whitmore sent a note to investors, claiming Apple will be launching not one, but two iPhone 5 models in September. One version, he said, will be the logical follow-up to the iPhone 4, delivering a high-end experience to consumers and enterprise users.

The other option, however, will be a less-capable version Apple will call the iPhone 4S. Whitmore believes that version will be ideal for the prepaid market that Apple thus far hasn’t capitalized on.

Though there is a possibility that Whitmore is correct in his prediction—after all, with Apple, anything can happen—the chances of that happening seem slim. For years, Apple has followed the same basic strategy in the smartphone market by releasing one major device each year, and that won’t change this time around.

As important as the prepaid market is, Apple has a strategy that doesn’t necessarily encompass that. Looking at the company’s track record, the Cupertino, Calif.-based firm will be far more likely to release one blockbuster smartphone—not two.

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Report: Contract-Free Budget iPhone Will Land in September

New phone would land beside next generation model

A new report to investors by Deutsche Bank AG’s (ETR:DBK) Chris Whitmore claims that Apple Inc.(AAPL) will offer a budget iPhone which retail for between $300 and $500 USD without a contract.  Buyers will purchase prepaid calling cards for the device.

According to Mr. Whitmore, the budget iPhone is what will be likely called the “iPhone 4S”, not the fifth generation model.  Many previously claimed to have inside knowledge that the fifth generation model would be named the “iPhone 4 GS” or “iPhone 4S”.  The budget model would reportedly launch in September besides a fifth generation model (presumably named the iPhone 5).

Mr. Whitmore envisions the phone priced at around $350 USD — a mark he said would not hurt profitability.  He writes, “Apple shipped (about 87 million) units over the past 2 years which suggests it has reached only 6% penetration of its current addressable subscribers. Looking forward, we believe Apple has room to run both in terms of greater market penetration as well as incremental carrier additions going forward.”

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