Apple is certainly working on new iPhone. It would be shocking if they weren’t. But that does not reflect just a new iPhone from the previous generation. It means some other kind of iPhone to address the low end of the market, which will cater the consumers who cannot afford the current flagship of IPhone 5.

These rumors were circulating over the last few months that Apple may ditch the A6 processor, used in the iPhone 5, for a third-party chip such as the Qualcomm Snapdragon, used on other lower-end phones.

According to the analyst,namely the Snapdragon:

“AAPL would not want a value priced iPhone to offer the same kind of graphics and video support, processing power etc. that its premium priced device would, therefore a less powerful lower-end Snapdragon integrated solution would help segment the product.”

Analysts have added that by using a Snapdragon with integrated Bluetooth and WiFi, Apple can consolidate three discrete chips used in the current iPhone 5 (a Qualcomm modem, the application processor and the Broadcom WiFi/Bluetooth combo chip) into a single chip at sharply lower cost to preserve margin.

Currently, Apple serves the lower-end segment of the phone market by simply selling its lower-generation devices at a heavily discounted price which are iPhone 4S and the iPhone 4. These naturally have lower specifications, therefore the new low-end product; will likely just be a recycled version of a previous-generation model, perhaps with a revised design and weaker materials.

It already has been estimated that an IPhone using a chip of that description would provide an incremental $10-$15 per phone sold to Qualcomm. Meanwhile, the research firm contends there is no risk that Qualcomm is at risk of losing the model business in the next refresh of the iPhone.

MsoNormal