• Pegatron CEO Claims Apple's "Low-Cost iPhone" Will Not be a Budget Offering

    While speaking at his company’s shareholders meeting recently, Pegatron CEO T.H. Tung said Apple’s rumored low cost iPhone won’t be a budget offering, seemingly confirming speculation that the handset will be sold as a higher-end middle tier device. The executive mentioned that products currently on the market can carry a number of names, but “cheap” is not one that should be associated with Apple’s less expensive iPhone. He went on to say that compared to feature phones, smartphones are increasingly offering more value for the price.

    The statements seem to confirm previous reports that Pegatron is handling at least a portion of the as-yet announced iPhone’s manufacturing. A report previously claimed that Pegatron is preparing to hire roughly 400,000 workers sometime in the second half of 2013, adding fuel to the low-cost iPhone fire.

    As of right now, analysts and media sources are divided as to which of Apple’s partners will be responsible for the majority of production, with some claiming Foxconn is likely to pull most of the burden. KGI analyst, Ming-Chi Kuo said that the two companies will nearly split manufacturing duties for the low-cost version, while Pegatron would be taking on a bigger share of continued iPhone 4 and 4S production.

    Ultimately, we’ll have to wait and see but if the “low-cost iPhone” isn’t a budget offering, than it might cannibalize into the sales of older iPhone models.

    Source: China Times via Macotakara
    This article was originally published in forum thread: Pegatron CEO Claims Apple's "Low-Cost iPhone" Will Not be a Budget Offering started by Akshay Masand View original post
    Comments 8 Comments
    1. yohomie's Avatar
      yohomie -
      Yeah, I still don't believe this. Just purchase an older iPhone that's "cheaper".
    1. Donnutt's Avatar
      Donnutt -
      I agree. Not gonna happen. Apple has no reason to make a cheap product. If the cost of an iPhone is too great for you, you probably shouldn't even be considering it.
    1. klouud's Avatar
      klouud -
      I feel the same way - in the USA, things are pretty straight across the board: High monthly bills and $0-$399 cell phone price with a 2 year contract. It doesnt get any cheaper than "free" --- but we, here in the US, fail to see the global perspective. Most countries have very very very low month bills and pay full price for phones -- which is why a "low cost" iPhone is in high demand. If one does show up, we probably won't be seeing it in the US - and I could care less. Why would I not purchase a flagship product? Why would I get a MacBook Pro when I could get a MacBook Pro Retina? Price? Really? No -- Once you venture into Apple's price range, what's a few more hundred dollars?
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      The more I think about it, I feel like apple could release a new lost cost phone. If they do, they should make it as basic as possible. A4 with no camera's and a non retina display with 4gb or 8gb would make sense. Make it look nice and it would be a great gophone. Make it so it wouldn't be worth buying if you actually wanted a decent phone (iphone 4 is now a decent phone not a good phone), but target on-the-go customers. Make the phone so it could only be used if it has minutes associated with it so it wouldn't cannibalize iPod Touch sales. It could sell, but probably not as well as the featured iphones. Just an idea. I'm still with everyone else. It probably won't and shouldn't happen though.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      iPhone 4 is currently $450. When 5S comes out, drop it to $350 and boom you got a low cost iPhone that runs latest iOS 7. Remove retina and sell for $300 is another option.
    1. bigboyz's Avatar
      bigboyz -
      I don't know anyone that would want a lesser experience with an iPhone. You buy if for ease of use and that feeling of "I got what i paid for" I don't think you will have that experience with something that is made to be well....cheap.
    1. DevouredDreams's Avatar
      DevouredDreams -
      never happen, apple is about profit. lower end would be so low end specs that it would be pointless to buy. ios has the ability to control the market if they would just allow open source. it has nothing to do with viruses thats just an excuse apple is just a controlling company, if anything is released that is a changer they try to sue over every lil nit bit thing. apple needs to take these things that are being brought out and make them better, i like my android phone but everyday use i really enjoy my iphone 5 its more a professional phone for me and my android is my toy. go open source apple and grab the market by its balls.
    1. Jahooba's Avatar
      Jahooba -
      "Never happen" is what they said about the iPad Mini...
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