Cheap iPhone 5 gets new Rumor Fuel

The rumor about Apple releasing a new cheap iPhone to battle Android on the low-end is not dying. There was quite some intensity to the budget iPhone rumor end of June when an analyst laid out the possibility of a $350 pre-paid iPhone. Now 9to5Mac reports that a reliable source told them that Apple is indeed releasing two iPhone models this Fall. One completely new high-end device with new design and a visually distinct bargain iPhone.

9to5Mac thinks that Apple will use the current iPod touch platform to build a low-cost iPhone. My colleague Robert already argued against Apple diluting the iPhone with a cheaper model here. I share his concerns, but Apple is already selling a cheap iPhone. It is the iPhone 3GS. For me it is not a technical issue for Apple to offer a low-cost iPhone. Apple could market the iPhone 3GS as a pre-paid device today at a reasonable price. To really make an impact on the low-end smartphone segment they would need to bring the price down to under $300 though.

More breaking iPhone 5 Rumors from around the web.

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