Everyone would love to have an iPhone and not have to pay the price for it. Let's face it iPhones are expensive. When you buy a two year contract from a carrier, the price of the iPhone is factored into your monthly voice and data plans which start at $100 a month for a major carrier such as Verizon Wireless.
Cost of iPhone vs Cost of Monthly Plan
When you calculate what an iPhone costs you on Verizon or AT&T, you have to figure your early costs. For example 2GB of data and unlimited voice and text on Verizon Wireless will run you $100 a month, plus $200 for the iPhone bringing the total cost of the iPhone for two years to $2,600. For AT&T to buy an iPhone 5 with 4GB of data per month at $110 a month the iPhone 5 will cost a total of $2,840 for two years. That's a lot of money for many people.
The reason why the Nexus 4 continually sells out at $299 or $349, is you get a high-end smartphone which whatever carrier you have does not have to subsidize. You can even use a prepaid lower cost option such as Straight Talk for $45 a month.
Unlocked iPhones Cost Too Much?
The unlocked price of a 16GB iPhone 5 is $649 and 16GB iPhone 4S is $549 which seems like a lot of money sending customers to the a free iPhone 4 or $199 iPhone 5 with a hundred a month or more plan.
So here comes the Franken-iPhone theory propagated by many news sources. Apple supposedly is planing on making a cheaper iPhone for some markets, using old parts from old models, using iPod touch styling and lowering the price by using plastic. iLounge has photo which some believe could or could not be true.
Is a Picture Worth a Thousand Media Mentions?
There were new reports today that the budget iPhone will be like the iPhone 5 with 4" screen(not Retina) and only changes on the bottom and left side. Photos show that the reported budget iPhone is barely larger than the iPhone 5 with screen like the iPod Touch and a curve like the iPod classic. The report with photos say the cheap iPhone will be emerging markets. Other features include a camera, volume buttons, headphone port and lightning connector.
Analysis Leads to Paralysis?
One analyst looked at the cheaper iPhone theory, yesterday, and noted it would blow up the iPhone market and there is no way Apple would kill its present profits for a cheaper iPhone. Sometimes you can buy a two-year-old iPhone 4 used for around $210 or even a refurbished one for $299 from retailers like CowBoom If Apple releases a cheaper unlocked iPhone, used iPhones will go for less and carriers will put the pressure on Apple for a lower price.
Profit More Important to Apple?
Okay, so lets look at all the details of the cheap iPhone 5s theory, there is possibility that Apple may create a new model, which will not be as expensive as the iPhone 5 for carriers, but we doubt it will be in the realm of the Nexus 4 price range.
As noted by one report just the materials alone for an iPhone 4 or iPhone 5 cost close to $200, Apple probably will not give up its huge profit margin for as long as it can possibly hold out in the market.
Will the cheap iPhone come to the United States?
If the cheap iPhone 5 comes to the United States most likely it will be in plane with a customer or through the mail. Carriers in the United States decide what smartphone will be sold on their networks. If Apple and the carriers can sell an iPhone 5S and both profit from it will become reality.
This as in all rumors we have to take with a wait and see attitude. A week before the release of the iPhone 4S there were reports of an iPhone 5 which were not true until September 2012.
The only we know for sure about iPhones is that when they come out they sell like iPhone..In fact the latest figures from AT&T snow 84% of smartphone sales as iPhones and 62.34% of smartphone sales as iPhones for Verizon Wireless.
Although the size of the iPhone 3G, 3GS and 4 stayed the same through it's four-year history, its insides have changed, read comparison.
If Apple is sticking with 5" for its new models, there is a precedent for processor changes but it formerly was faster and better specifications.
As with all iPhone rumors only time will tell.