Another day, another low-priced iPhone rumor. Analysts at research firm Detwiler Fenton believe that Apple is working on a new iPhone, targeted towards the low-end market, that will make use of Qualcomm Snapdragon processors.
Detwiler Fenton believes that Apple will make this move because it wants to maintain gross profit margins, which dropped in the fourth quarter, while offering a lesser-featured, less-powerful iPhone.
“It is likely that the work with QCOM is being driven by AAPL’s concern regarding maintaining gross margins as well as the need to differentiate the product by performance,” the research firm said in a note to investors. “AAPL would not want a value priced iPhone to offer the same kind of graphics and video support, processing power etc. that its premium priced device would, therefore a less powerful lower-end Snapdragon integrated solution would help segment the product.”
Earlier this month, the credible Wall Street Journal also reported that Apple is working on a low-priced iPhone. Similarly, we heard that a cheaper “iPhone mini” could launch by next year. As with all rumors, however, we’ll remain cautiously optimistic about this one.