An analyst talks about his recent checks at Apple's manufacturing partners. He finds clues suggesting that Apple is ramping up production of the iPhone 5S and a low-cost iPhone for the middle market.
The next-generation iPhone rumors are on full throttle. The latest one is from Jefferies analyst, Peter Misek, whose recent checks in the Apple industry suggest that manufacturing partners are ramping up the iPhone 5S production this month.
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Misek adds that the production will indeed include a low-cost iPhone that is estimated to cost around $300 or $400, subsidy not included. As to the number of units Apple may be aiming, the analyst estimates 25 million to 30 million units of the iPhone 5S and the low-cost iPhone all in all.
However, Misek adds that the low-cost iPhone will not be that competitive with other low-end devices in the market today. Given the case, the said low-cost iPhone could do very well in the middle market, where there is more room for growth.
Misek believes that Apple is following the same pattern it applied when it launched the iPad mini and the iPod nano, devices that are not that cheap, yet are still very popular, hence, falling perfectly into the middle-end category.
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