Analyst Predicts An Unsubsidized $200 iPhone Coming In 2014

By  at Saturday, November 24, 2012  

Apple, the world’s most expensive company, is raking in Billions of profits each quarter and a lot of credit for that goes to the iPhone. The latest iPhone 5 is no exception but despite being a successfully product, it is still considered a lot more expensive than the competition. Consider Google’s latest flagship, the Nexus 4, which packs similar specs and comes with an unbelievably small price tag of $300 for the 8 GB and $350 for the 16 GB version. This situation likely seems to change soon as an analyst is predicting that Apple will release an unsubsidized $200 iPhone in 2014.

Gene Munster analyst Piper Jaffray believes that Apple may change its pricing plans to release a cheap unsubsidized $200 iPhone. The main reason behind this new strategy being Apple’s low market shares in emerging markets like Russia, India, Brazil and China which have been dominated by the low priced Droids. Android conquers almost 90% of China which certainly means a lot so Apple needs to do something different to challenge Google’s OS. Those living in the U.S or Europe can easily get the basic 16 GB iPhone 5 for $200 with a two-year contract but other Asian countries haven’t yet adhered to this method so a cheap iPhone will go a long way in capturing market shares for Apple.

Apple has never been the pocket-friendly type but a lot is changing at the Cupertino-based tech giant since Tim Cooks took over so we won’t be surprised if a $200 iPhone really is released in a couple of years.

So what do you think, will you buy an iPhone if it costs just 200 bucks?


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