Wednesday, February 11, 2009

A cheaper $99 iPhone by summer?

RBC Capital Markets analyst Mike Abramsky reports today that consumers can expect a $99 iPhone this summer.

The current iPhones cost $199 for an 8-gigabyte model or $299 for a 16GB model with a two-year agreement with AT&T. Abramsky thinks a cheaper iPhone might increase Apple's global market share for smartphones from 12 percent (currently) to as much as 19 percent.

Abramsky said the new iPhone will not run on AT&T's faster 3G wireless network, instead using the older 2.5G version. But the $99 phone is expected to have Wi-Fi and Bluetooth compatibility, as well as the same size screen. He predicts the new phone will have a lower resolution, but also a cheaper data plan -- one for $15 per month, half the current rate.

Apple doesn't comment on products in development.

The report says the current iPhone will keep its pricing while possibly adding new features like a better-looking screen, a video camera and more memory.

2 comments:

Clayj said...

Dream on, Langston. Apple have already said that their goal is not to have the #1 marketshare, but to make the best cellphone in the world. A cut-rate $99 iPhone would go counter against that goal.

They will undoubtedly add new features, but I wouldn't expect the price point to drop any lower than it already is.

Anonymous said...

If you want video camera, just jailbreak and get Cycorder off of Cydia.