Apple's low cost iPhone, dubbed as iPhone 5S, may have a friendly tag price starting around $199.
It is still unknown whether the aforementioned price will be the price of an unlocked iPhone or under a contract with carriers. However, the incredibly cheap price will definitely attract a lot of consumers in many parts of the world, especially in big Asian markets such as India and China.
Previous reports claimed that the cheaper iPhone handset will cost around $300. Nevertheless, the price is significantly lower than that of the major iPhone.
According to reports, since the market is expected to increase steadily, the growth and profit of the company will not be hindered by the low pricing as the huge volumes will make up for the margins. Apple also receives renewed interest from investors before the launch of any big ticket release.
There are whispers that Apple is bound to release a cheaper version of iPhone that is thought to be made entirely of fantastic plastic to save on costs. The phone is expected to carry some of the features from the current Apple family, which includes Retina Display and Lightning connector.
This may well help Apple to extend its range of products into the lower income bracket consumers as up until now, Apple has been sitting pretty at the top of the price scale when it comes to smartphones.
However, Apple CEO Tim Cook himself has to some extent broken his trademark silence to tell a Goldman Sachs conference that the company has no interest in developing and releasing a "crappy product". This is an obvious response to the iPhone 5S rumours and a way to encourage customers to not hesitate in buying the latest iPhone 5.
Jefferies analyst Peter Misek, who maintains a high level of confidence regarding his hardware predictions, believes that Apple will release a low-cost iPhone in June.