Apple Suppliers Are Manufacturing A Cheap 8GB iPhone 4

Apple Suppliers Are Manufacturing A Cheap 8GB iPhone 4

According to a report by Reuters, Apple Inc. will release a cheaper 8GB version of iPhone 4 within several weeks. Currently, the iPhone 4 comes with only 16 and 32 giga-bytes of storage space.

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The report also indicates that Apple has given the nod to its Asian manufacturers to start making the 8GB model — will arrive at the same time as the next generation iPhone (iPhone 5).

Meanwhile, the 8GB flash-drive is being developed by some Korean company. Currently, Samsung and Toshiba manufacture flash-drives for the other iPhone 4 models.

The aim of launching a cheaper model is to win lower-end customers from rivals in China and other growing markets, by cutting the profit margin. Though, lesser storage will reduce the device’s price, but it will not be drastic price cut(not below $200).

A lower-priced version of iPhone 4 seems to be a necessary evil at this point in the iPhone adoption cycle, especially in emerging markets where the average income of individuals is much lower.

At the moment, the 16GB and 32GB iPhone 4 models(without contract) cost $649 and $749 respectively.