By: iPadfanzz staff on January 9, 2013
Signaling a big shift in its corporate strategy, Apple is believed to be working on a budget iPhone and could launch the new handset as early as this year.
As per the report published in WSJ, the less costly version of the iPhone will look the same as the standard iPhone, but have a less expensive body. At the moment, the iPhone 5 currently sports an aluminium body whereas the reports suggest that the new handset will come in a shell made of polycarbonate plastic.
The company believes the time is opportune as it is the right time to introduce the people to the brand.
The current shift in corporate strategy will be a big one as under the former chief executive Steve Jobs, Apple looked at profits over scale and always offered a relatively small number of products catering to the needs of the high-end market.
Although the idea of making a cheaper version of the iPhone was conveieved earlier, the idea was shelved due to the concerns regarding the complication in the manufacturing process.
But Apple now faces greater pressure to make the iPhone more affordable. The iPhone 5 without a wireless contact at the moment retails at $649 in the US, which is out of reach in many countries where carriers don't help cover the cost of the phone.
Christopher Caso of Susquehanna Financial Group had earlier said that Apple has cut its iPhone orders for the March quarter to between 35 million and 40 million. The orders were earlier expected to be between 40 million and 45 million.
On the other hand, a flurry of rival products powered by Google Inc.'s Android operating system are gaining market share.
The iPhone is still the best seller in the US market, but the pressure is continuously increasing due to the growing presence of Android powered smartphones.
The iPhone is Apple's chief revenue driver, with sales of iPhones and related products and services amounting to 48 per cent of overall revenues in the quarter ended in September.
