5 Reasons Why Apple Should Release iPhone 6, iPhone 5S This Year

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By Kristin Dian Mariano | February 25, 2013 11:58 AM EST

Apple may release two handsets this year - the major iPhone 6 and the low cost smartphone dubbed as iPhone 5S.

Analysts already revealed their thoughts on the roadmap of Apple devices this year. Consumers are still mulling over the rumours of a low cost iPhone that may hit the market causing a severe blow on the sales of the latest iPhone 5.

Apple may not be able to release an iPhone with ground breaking specs and features this year, according to Jefferies analyst Peter Misek. He said that the original plan is to release an iPhone with a bigger screen display; however, Apple's screen suppliers are struggling with the manufacturing process in increasing the size of the 4-inch iPhone to 4.8-inches.

Misek concluded that Apple will release a low-cost iPhone in June, as well as an iPhone 5S, which a handset without major upgrades.

This is seconded by Morgan Stanley analyst Katy Huberty issued a note to clients about it after a meeting with Apple Chief Financial Officer Peter Oppenheimer.

"We ... see several signs that a lower-priced iPhone makes sense," Huberty said. "1) iPad mini is expanding Apple's customer base with 50% of purchases in China/Brazil representing new customers to the ecosystem. 2) Chinese consumers show a desire to purchase the latest version of iPhone (instead of discounted older generations.) 3) iPhone 4 demand surprised to the upside in the December quarter. Even at a low 40% gross margin and 1/3 cannibalization rate, we see an 'iPhone Mini' as incremental to revenue and gross profit dollars."

Below are the five reasons why Apple should release the iPhone 6 and iPhone 5S this year.

1.       Affordable Price Attracts Consumers - A new rumour emerged that Apple's low cost iPhone, dubbed as iPhone 5S, will have a friendly tag price starting around somewhere $199. It is still unknown whether the aforementioned price will be the price of an unlocked iPhone or under a contract with carriers.

2.       Apple Will Expand Markets - The incredibly cheap price will definitely attract a lot of consumers in many parts of the world, especially in big markets such as India and China and other third world countries. The major iPhone 6 is expected to have the same price tag as the previous iPhone.

3.       Give Consumers More Options - Releasing two iPhones will give more options to consumers when buying devices like what iPad Mini did. Some analysts view it as Apple widening its target market. Consumers will most likely choose Apple devices in the market but the expensive price tag encourage most consumers to look for cheaper alternatives.

4.       iPhone 5S Will Yield to More iPhone Variants/Products - Releasing a low cost iPhone may pave the way to other smartphones from the company. It may widen the horizon of Apple in terms of manufacturing devices and be the like of other mobile phone manufacturers such as Samsung, which releases a wide array of smartphones.

5.       iPhone 5S Could Save Apple - Many analysts claimed that the cheaper iPhone 5S could save the company from the latest slump it is experiencing. It may bring in lots of profits to Apple that will allow the company to once again gain dominance in the market.

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