Apple working on lower cost plastic iPhone

The latest industry rumors claim that Apple are working on a big change in corporate strategy. According to the Wall Street Journal some people briefed on the change have ‘slipped‘ out the information.

This isn't the first time we have heard this news although the latest news would suggest that the ‘plan is progressing' well for Apple and a less expensive version of their flagship phone could launch later this year.

The cheaper iPhone would look very like the expensive model with a lower cost body design involved. A move to polycarbonate plastic body would reduce costs over the aluminum materials currently incorporated.

Many other parts could remain the same and be recycled from other iPhone models.

Obviously this is all speculation and ‘leaked insider information'. Apple have declined to comment to any media source, to confirm or deny the news.

The move to make a cheaper iPhone would make sense, especially in the developing markets which are so lucrative. Apple face a growing challenge from Android rivals who are gaining market share all the time.

Tim Cook may also take a slightly different direction in coming years. The release of the iPad Mini was the brainchild of Cook – after Jobs spoke out publicly against the model years before it was released.

Q3 information from IDC indicates that Apple hold 14.6% of worldwide smartphone shipments, down from a peak 23% which was held in Q4 2011. Samsung's share has grown from 8.8% to 31.3% from the third quarter of 2010 to the third quarter of 2012. Their relationship with Apple is very strained as the two giants have battled in court in various countries.

Samsung have reported an operating profit of $8.1 billion to $8.5 billion for Q4 2012.

Kitguru says: The release of a low cost iPhone would make sense for Apple, although it goes against their ethos of only being a premium brand maker.

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