The Wall Street Journal is reporting that a filing made by Leap Wireless with the Securities and Exchange Commission, provides “some concrete evidence” that Apple is indeed developing a cheaper iPhone. The company has stated that it is looking to sell half as many iPhones as it committed to sell during the first year of its contract with Apple, which ends in June.
Those who don’t know, Leap doesn’t require customers to sign contracts and charges more for the iPhone upfront than major U.S wireless carriers like AT&T and Verizon which subsidize the cost in exchange for two-year contracts. Leap charges $500 for the latest model. At carriers that offer two-year contracts, the same phone sells for about $200, or $650 without a contract. The source believes that Leap is now “looking for ways to make the iPhone even cheaper” than it already is.
Here’s what Leap is trying to do about the iPhone situation:
The company said it was working to improve iPhone sales with more marketing and offering more financing for buyers of the device, and noted that its contract with Apple allowed it to lower the price at which it sells the iPhone to consumers.