Apple may be able to build a cut-rate iPhone for $144, which would let it price the device between $299 and $349, hundreds less than the unsubsidized price tag of its flagship smartphone, an analyst said today. A lower-cost iPhone would be a major strategic shift by Apple, which has rigorously held the price line, and may signal that it believes real growth will be found only in emerging markets, said Sameer Singh, who covers the mobile industry at his Tech-Thoughts blog. “I think the primary driver would be their position in emerging markets,” said Singh in a Thursday email reply to questions. In a Jan. 14 post, Singh assembled a rough estimate of what it might cost Apple to assemble a lower-priced iPhone. His total, including manufacturing costs, came to $144.03.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.