Budget iPhone to be sold to increase Apple marketshare

Apple are working on their first line of budget oriented iPhones and a total overhaul of the software services for the devices, according to the latest insider information circulating in the Far East.

One of the people, according to The Wall Street Journal saw a prototype of the phone last year and said that Apple were releasing it alongside their current range. The new phone would be half the size of the iPhone 4.

The codename for this phone is N97 and it will be made available to carriers at around half the price of the current iPhone 4. This obviously means that carriers can cut the pricing and will ensure that Apple can enter the budget market, were a lot of sales are made. Sources indicate that Apple sell their iPhone to carriers for $625 each on average. Consumers, with subsidies pay as little as $199 with a two year contract. The device is expected to first hit retail in the US before reaching European markets.

Apple are also suggesting that MobileMe might be released for free in the future, which would allow people using the budget iPhone models to have access to online storage capabilities, to counter the reduced internal flash storage.

Steve Jobs, although taking time off to deal with health problems, is still involved in the product range and is holding meeting from home. Latest reports indicate that this new budget iPhone could hit retail as soon as summer this year. Apple as always, have declined to comment on any of these rumours.

KitGuru says: Since 2007, Apple have sold 84.2 million units and with a budget version on the market, their sales figures are set to soar.

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