14 DAY TRIAL // An analyst note authored Brian White of Ticonderoga Securities resurrects rumors of a budget iPhone alongside a brand-new iPhone 5, with Apple allegedly keeping a close eye on the Chinese market.
The analyst has reportedly learned that China Telecom may have reached a "preliminary agreement" to carry not only the iPhone 5, but also a "simplified iPhone 4" this fall (October, to be precise).
According to White’s note, the launch of a budget iPhone would occur through China Telecom, the country’s largest operator who would offer both the unannounced iPhone 5 and a "more economical version" of the iPhone 4, he said, according to AppleInsider.
There have been multiple rumors of an iPhone 4S launch scheduled for this autumn but, so far, the scenarios still seem shaky.
Still, White sees the introduction of a cheaper iPhone 4 as a $30 billion opportunity for Apple.
Lending some credence to the analyst, photos of an alleged low-budged iPhone 4 have recently surfaced.
According to those who've obtained them, Apple would replace the glass plates that cover the front and the back of the iPhone 4 with plastic parts, in order to reduce costs.
Not only does such a move not resemble Apple, it’s not the glass that needs replacing to bring the BOM (bill of materials) down, but rather the display, the NAND Flash memory and, of course, the A4 processor.
As such, if Apple really does want to start selling a cheaper iPhone under contract in China, it has the iPhone 3GS to do so (as previously speculated).
However, it is very likely that Apple will discontinue the iPhone 3GS, leaving the iPhone 4 to take its place as the fifth-generation handset makes an appearance this fall.
AppleInsider also recalls a report published in July that had China Telecom selling a low-end iPhone by the end of the year.
One source quoted in that report had proposed November as the timeframe for the launch.
Softpedia note
For what it’s worth, I’d like to point out that Apple has said on numerous occasions that its business is not in the low end sector, but in the high-end.
The Cupertino, California-based technology giant has often cited cheapness as a factor that affects the user experience greatly, getting both the customer and the company nowhere in the long run.