Bloomberg is saying this today:
"Apple, which had been working on a more affordable smartphone since at least February 2011, is weighing retail prices of $99 to $149 for a device that would debut in late 2013, at the earliest, according to the person, who asked not to be named because the negotiations are private. Apple has spoken to at least one of the top U.S. wireless carriers about its plans, the person said yesterday. "
$99 would be insanely low for Apple.
$149 at least allows for more than a few dollars' profit.
""The device would use cheaper parts and may be smaller than current models, people familiar with the plans said. Apple was also considering a more versatile version that would work on multiple wireless networks, according to people who were briefed on the plans."
I would assume that $99-$149 are the subsidized prices which are to high IMO.
Unless these phones DO NOT require data plans and are subsidized for voice only plans which would make that price VERY nice.