Rumor: More affordable iPhone will launch alongside Apple's 'iPhone 5S' in July

Posted:
in iPhone edited January 2014
Suppliers in Apple's supply chain reportedly believe that the company plans to simultaneously announce both a low-cost iPhone along with a premium "iPhone 5S" this June, setting the stage for a July launch.

The details were relayed to analyst Brian White of Topeka Capital Markets, who attended an industry trade show in China this week. There he said he learned from suppliers and vendors working with Apple that a new, lower-priced iPhone is expected to be announced in June alongside a next-generation "iPhone 5S."


A pair of iPhone mini prototype concepts developed by Apple were revealed in its court battles with Samsung.


The claims made by White in a note to investors on Friday contrast with those from Ming-Chi Kuo of KGI Securities, a well-connected insider who reported to AppleInsider on Thursday that Apple is likely to face production problems with its so-called "iPhone 5S," leading to a launch later than June. Specifically, he believes that the device will include a fingerprint sensor embedded below the home button, which will pose a number of technical challenges for the company.Supply chain sources told analyst Brian White they believe Apple will launch a cheaper iPhone with a 4-inch display and plastic casing this summer, likely a June unveiling followed by July launch.

Trade show attendees who spoke with White gave no such indications, however. That led him to report on Friday that he expects the low-cost iPhone to have the same 4-inch display as the current iPhone 5, but to feature a slightly thicker design with a curved back made of plastic instead of metal and glass.

As for the anticipated "iPhone 5S," White said there was a "strong consensus" among suppliers that the device will have slight external modifications, though it is expected to look largely the same as the iPhone 5. Anticipated changes to the exterior include a larger camera and slightly rearranged buttons on the left side of the device.

Like Kuo, White also believes that fingerprint scanning technology will be included with an "iPhone 5S" this year. White believes this functionality will be "the major new feature used to market the iPhone 5S, similar to what Siri was to the iPhone 4S."

The suppliers that White spoke with gave no indication of alternative screen sizes outside of the 4-inch display Apple currently uses for the iPhone 5. That's in contrast with his own research note from earlier this week, which predicted Apple would launch a next-generation iPhone with at least two screen sizes this summer.

On Friday, he said the reason for this disparity is "unclear," but suggested there could be "extra secrecy" from Apple regarding a big-screen iPhone, the likes of which could compete with popular devices like Samsung's Galaxy Note series. Alternatively, he said it's also possible that Apple could be thinking ahead to 2014 and potential changes for a so-called "iPhone 6."

Regardless, White believes it is "inevitable" that Apple will launch an iPhone model with an even bigger display. In his trip to China, he has found that big-screen Android phones are among the most popular handsets, and he believes it would be a mistake for Apple to ignore this market trend.
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Comments

  • Reply 1 of 53
    tallest skiltallest skil Posts: 43,399member


    Like Kuo, White also believes that fingerprint scanning technology will be included with an "iPhone 5S" this year. White believes this functionality will be "the major new feature used to market the iPhone 5S, similar to what Siri was to the iPhone 4S."


     


    Instead of saying, "HOW THE FRICK COULD THIS USELESS GIMMICK POSSIBLY BE CONSIDERED A 'MAJOR NEW FEATURE'?!" let's try to think of ways it could be.


     



     


    I can't think of any.

  • Reply 2 of 53
    philboogiephilboogie Posts: 7,438member
    The claims made by White in a note to investors on Friday contrast with those from Ming-Chi Kuo of KGI Securities, a well-connected insider who reported to <em>AppleInsider</em> <a href="http://appleinsider.com/articles/13/04/11/development-issues-may-cause-later-than-expected-debuts-of-iphone-5s-low-cost-iphone-next-ipad-mini">on Thursday</a> that Apple is likely to face production problems with its so-called "iPhone 5S," leading to a launch later than June. Specifically, he believes that the device will include a fingerprint sensor embedded below the home button, which will pose a number of technical challenges for the company.

    Technical challenge? "Below the home button" will indeed be a challange, about the only thing that makes sense here.
  • Reply 3 of 53
    pedromartinspedromartins Posts: 1,333member


    One day Apple is doomed and production is delayed (delayed by what? Since when?)


     


    The next day we have 3 iPhone models before july...


     


    and here we are, clicking..

  • Reply 4 of 53
    jungmarkjungmark Posts: 6,705member
    Apple must deliver a low cost iPhone.
    Apple must maintain its high margins.

    Which is it, analysts? The alleged low cost iPhone will drive margins down.
  • Reply 5 of 53

    Quote:






     



    AI is posting this photo... whenever they mention about Cheap iPhone.  It is giving wrong signals.  Even though there is a footer sentence that mentions that they are prototypes... it is not good to post these photos whenever cheap iPhone is mentioned.  


     


    People are thinking that these are the leaked Cheap iPhone photos.  One of my colleague right here in my office is commenting that cheaper iPhone looks very ugly and he is giving big lectures why the design sucks.  Being, he is American, he should understand the secrecy maintained by Apple and must have understood that they are prototypes. But it is not the case.  I dont know how many people would have mistakenly thought that this is how Cheaper iPhone going to be and look like.  

  • Reply 6 of 53
    rogifanrogifan Posts: 10,669member
    Ok, so I'm supposed to believe that suppliers working with Apple on a new iPhone would leak development plans to a Wall Street analyst? That makes no sense to me, as if Apple found out about it these suppliers most likely would no longer have Apple as a client. How do we know these suppliers aren't feeding him a bunch of BS?
  • Reply 7 of 53
    anonymouseanonymouse Posts: 6,580member

    Quote:

    Originally Posted by PhilBoogie View Post





    Technical challenge? "Below the home button" will indeed be a challange, about the only thing that makes sense here.


     


    I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.

  • Reply 8 of 53
    A lower cost, entry level iPhone makes sense for emerging markets like China, India and Brazil. This opens up a pool of hundreds of millions of potential new customers. There is no reason to believe they will offer it in the US, UK, EU or other established markets.
  • Reply 9 of 53
    Just put a cellular radio in the iPod Touch and the iPod mini and make everyone happy.
  • Reply 10 of 53
    philboogiephilboogie Posts: 7,438member
    anonymouse wrote: »
    philboogie wrote: »
    Technical challenge? "Below the home button" will indeed be a challange, about the only thing that makes sense here.

    I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.

    Thanks. Not my native language, and I expected it to be written 'behind' instead of 'below'. Maybe I'm a bit of a 'Mr. hospital corners'
  • Reply 11 of 53

    Quote:

    Originally Posted by anonymouse View Post


     


    I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.



    If a fingerprint scanner is at all associated with the home button (dumb idea), a problem may be to disallow unwanted presses of the button when attempting a scan. Maintaining a mechanical home button would perhaps mitigate against an errant press, as some force is needed. If they're going this route, it would be interesting to see how a scanner could be embedded into the current physical key. They are not going with redesigned mechanical home button to solve this problem.


     


    But what about an optical home button? If they go with an optical button, it would be confusing to users if there is no clear prompt in the relevant app to scan a finger? But if that's the case, wouldn't developers already have been made aware of new APIs and other app updates to make use of this feature at launch of iOS 7 and the new iOS devices?


     


    The idea is cool and useful from a security standpoint, I just don't see it happening yet, perhaps 2014. When/if it does happen, I see the sensor being embedded under a portion of the screen, not the home button.

  • Reply 12 of 53
    See absolutely no reason for Apple to come up with cheap iPhones. They never did and yet still they're outselling every iClone out there. Really hope they don't do that, seems like lowering their standards. And if that's what they're gonna look like, those hideous things in the picture, yep, they're desperate and doomed. They don't need the low end market.
  • Reply 13 of 53

    Quote:

    Originally Posted by Jordon Eagan View Post



    A lower cost, entry level iPhone makes sense for emerging markets like China, India and Brazil. This opens up a pool of hundreds of millions of potential new customers. There is no reason to believe they will offer it in the US, UK, EU or other established markets.


    What you are suggesting is a whole other level of fragmentation-not UI fragmentation, mind you, but market fragmentation. I just don't see that at all. I'm not aware of any time in Apple's history when an entire hardware product was excluded from the US market. That would be a PR nightmare. Can you imagine all of the US and European customers that would be livid with Apple not allowing them to purchase a low-cost iPhone? (Not to mention there are plenty of price-sensitive Apple fans here, too.)


     


    If they decide to sell a low cost iPhone, and I'm almost certain they will at some point, it will be capable of running iOS 6 smoothly, be LTE capable, will be at or under $400 unsubsidized, and will be marketed globally. 

  • Reply 14 of 53
    slurpyslurpy Posts: 5,154member

    Quote:

    Originally Posted by En Sabah Nur View Post



    See absolutely no reason for Apple to come up with cheap iPhones. They never did and yet still they're outselling every iClone out there. Really hope they don't do that, seems like lowering their standards. And if that's what they're gonna look like, those hideous things in the picture, yep, they're desperate and doomed. They don't need the low end market.


     


    1. A cheaper phone would not be "lowering their standards". The iPad mini is significantly cheaper than the iPad, yet build quality is still superb. There's room to make a phone below the insane build quality of the iPhone 5, yet still maintaining good quality, by using different materials. They would never compromise the brand by building a piece of shit.  It can be "cheaper" without being "cheap". This concern was articulated for months before the iPad mini, and guess what? It was all unfounded.  Apple did this with the iPod, the iPad, the Mac, and they can do it with the phone. Perhaps it will be instead of selling older models of their phones as they currently do now. 


     


    2. The phone will look nothing like whats in that over-used photo, and anyone who believes it might has a few screws loose. 

  • Reply 15 of 53


    A range of iPhones is both inevitable and desirable. Apple don't make one iPod, they make a range of them, they don't sell one Mac, they sell a range of Macs. They have been slow off the mark expanding the iPhone offering and it's cost them market share so it makes perfect sense to put it right and build a range around the flagship device.

  • Reply 16 of 53
    isaidsoisaidso Posts: 750member

    Quote:

    Originally Posted by TzTerri View Post



    Just put a cellular radio in the iPod Touch and the iPod mini and make everyone happy.


    I think you meant iPod Touch and the "iPad" Mini. And specifically, you were referring to "voice service";  But yeah... That would do it.

  • Reply 17 of 53
    gwmacgwmac Posts: 1,797member


    An adult fingerprint scan required before making in-app purchases of these freemium apps would at least solve the problem of kids not being able to spend huge wads of accidentally on these apps. 


     


    Another advantage would be multiple user accounts. Two different people sharing an iPhone or iPad for example could scan their finger and have completely different accounts. 

  • Reply 18 of 53
    sddavesddave Posts: 24member

    Quote:

    Originally Posted by anonymouse View Post


     


    I believe they are saying they believe it will be integrated into the home button, as in, you put your thumb on the home button to scan it. "Below" in this case being in reference to the surface of the home button.



    Perhaps they should have written "beneath" rather than "below".

  • Reply 19 of 53
    tkell31tkell31 Posts: 216member


    Will the new phone have enough new features to get people to upgrade, switch, or make their first iPhone purchase?  That's really the only issue that matters and right now it looks like another great product that doesnt offer a compelling reason that people NEED the phone.  Sure it will sell well because a certain percentage of people will be due for an upgrade, others will need their first smart phone, and still others will switch, but this isnt the cavalry riding to the rescue of the share price.  One thing is clear is it takes too long to make minor upgrades.  Clearly you dont want to hurt margins, but offering a 5" or so screen iPhone should have happened a year ago.

  • Reply 20 of 53
    No, it's "affordable iPhone along with iPhone 5 purple monkey dishwasher." Get the rumor straight.
    This gets heavily filtered and embellished each time it is retold. Details are lost, assumptions and conclusions are inserted, and the whole thing is obfuscated by being retold. Of course AppleInsider isn't a journalism site, or else they would be in direct contact with the source of these rumors. But then we can't judge whatever the evidence is for ourselves: we are given only somebody's conclusions, and it's not clear how much is known vs how much is somebody's speculation. Let's say that Apple is buying molded plastic casings roughly the size of an iPhone. Then I would rather hear that rumor than the distilled conclusions that somebody has drawn from that. Who drew the conclusion? Isn't that speculation mixed in? How do we know that Apple isn't making some other device like a plastic cased iPod Touch?
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