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  5. Cheaper iPhone to cost $329, bring 38% margin

Cheaper iPhone to cost $329, bring 38% margin

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Cheaper iPhone to cost $329, bring 38% margin

Apple’s much-rumoured low-end iPhone could cost half as much as its premium stablemate, analyst intel suggests.

In a research note to investors scooped by ValueWalk, investment bank Credit Suisse estimates the average selling price of a cheaper iPhone will come in at a reasonably modest $329.

This will purportedly be a 3G-only version, featuring 8GB of storage and the same form factor as the iPhone 5, making it ideal for new and young smartphone buyers, especially in emerging markets such as China and India.

Rumours of a lower priced iPhone have put many Apple shareholders on edge, as margins for such a device would be considerably smaller.

However, Credit Suisse says that although the gross margin would be less than it earns for the current iPhone, Apple would still rake in around 38 per cent profit on each sale.

It added that a $329 iPhone could capture 40 per cent of the smartphone market share in the $300-400 price range, which will be massive boon for the iMaker as it bids to recover from a recent major slump in the stock market valuation.

Would you like Apple to launch a cheaper iPhone? How much do you think it should cost? Let us know below.

Via:

ValueWalk

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