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I Guess Apple’s Free iPhone 4 Isn’t Cheap Enough

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Piper Jaffray analyst Gene Munster has been speculating over what Apple could get up to next year in order to be able to increase competition in regards to cheaper phones.

The popular analyst who loves to talk about all things Apple had this to say:

We believe the delta between smartphone market growth and iPhone growth will push Apple to release a lower priced device despite comments to the contrary. Looking back historically, Apple always priced Macs as the higher end of the market and ultimately the iPad, and now the iPad mini, became the Mac for the masses.’

Munster believes that an entry level cheaper Apple iPhone is critical and for one very good reason. Android devices are hot and they aren’t going anywhere. Even if people are considering an Apple iPhone, it is the quality and affordability of all the Android handsets on the market that could steer them away from Apple.

Munster went on to say that Apple may reveal a very cheap iPhone, compared to the iPhone 5 as we know it now, which would come with some nice features, while lacking the non-essential ones, which would only be available on the higher priced iPhones. This would include such as the Retina display.

What about the iPhone 4 then?

I guess Gene Munster doesn’t think that the free on contract iPhone 4 is cheap enough. When you think about it, it boasts a Retina Display, runs the same iOS 6 software as the iPhone 5 and has an excellent design that doesn’t make it appear two years old. While the iPhone 5 and 4S price tags have dropped for the holidays by around $50 to $70, you can’t help but feel that the $0 iPhone 4 is that entry level Apple phone which is meant for the ‘masses,’ as Munster put it.

Come next year when the next iPhone launches, it would be the iPhone 4S that would take on the $0 contract price point. And it boasts a better 8MP camera and A5 chip. I personally think Apple is doing it right already and would need to no reason to launch a new cheaper iPhone. What do you think?

Always looking for something new to learn, Mario looks at the internet as one big startup. With him at the helm, Autoomobile.com continues to head in the right direction of providing high quality and unbiased information on the latest new car models and electronics.