Apple working on less expensive iPhones

February 14th, 2011 - 7:46 pm ICT by Aishwarya Bhatt  

New York, Feb 14 (THAINDIAN NEWS) The Wall Street Journal has reported that Apple Inc is working on a smaller iPhone 4 that would sell about half the price of iPhone 4.

Apple’s iPhone is currently facing stiff competition from other smartphone makers. Price is playing a huge role in the competition. Currently Android based phones are selling more than the iPhone and that is what Apple is working to overcome more especially as Microsoft and Samsung have announced that they would be collaborating in the smartphone market.

Apple currently sells the iPhone 4 to carriers for $625 a piece. The carriers then subsidize the cost and sell it under contract to users. According to the report, Apple intends to sell the new smaller iPhone alongside the current iPhone 4.

It is vital that Apple stay strongly in the smartphone market. During the last quarter, Apple generated almost 40 percent of its revenue from the sale of the iPhone. Apple’s revenue last quarter was $26.7 billion.

The report indicated that Steve Jobs is behind the new move and he is closely following the development of the new product. Jobs is currently on a medical leave from his post as the CEO of Apple.

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