We’ve been talking a lot about the budget iPhone in recent months, mostly in relation to the emerging market (where the vast majority of the remaining smartphone growth is expected to happen in the next five years), but here’s a question: even if Apple, as they are rumored to do, release their first plastic iPhone since the iPhone 3GS, how are they going to price it low enough to actually penetrate third-world countries where the cost of the phone might be equal to someone’s salary for the month? Especially while maintaining Apple’s customary profit margins?
The truth is, it’s almost impossible to imagine Apple being able — or interested! — in doing any such thing. Current rumor pegs the “budget” iPhone as basically an iPhone 5 with a colorful plastic shell. If those rumors are true, that’s not really a budget phone: it’s a mid-range. It has to be if Apple wants to make money off of it.
Slowly but surely, that’s the realization dawning on some people on Wall Street. The “budget” iPhone isn’t going to be budget at all. And Apple’s going to make buttloads off of it.