Apple to Launch Lower-End iPhone Only If It Had ‘Category-Killer’ Experience

According to a new report by RBC Capital Markets analyst Mike Abramsky, Apple would only consider launching a lower-cost iPhone if it had an “innovative, category-killer experience”. This was after Abramsky met with Apple Executives COO Tim Cook and CFO Peter Oppenheimer on Wednesday, according to AppleInsider.

Abramsky revealed the information through a set of “key takeaways” from his meeting with Apple COO Tim Cook and CFO Peter Oppenheimer on Wednesday, though he did not provide any direct quotes from the two executives. “Apple’s primary criterion for launching a lower-end iPhone is an innovative, category-killer experience,” he wrote.

We’ve heard of previous reports about Apple launching a lower-cost iPhone to compete with cheaper Android phones, most notably from the WSJ. COO Tim Cook indicated in late February Apple is doing ‘clever things’ to target the prepaid market, as he wants the company to be “for everyone” and not “just for the rich”. Cook also stated “price is a big factor in the prepaid market”. Previous rumours have claimed Apple could even introduce the iPhone 3GS as their ‘cheaper iPhone’.

I can’t envision Apple selling a watered-down iOS smartphone, but using older parts to keep prices low in a new design would surely generate interest.