Is Apple Planning a Cheaper iPhone?

Very little, if anything, in the tech world generates more rumor and speculation than buzz about new products from Apple. So it’s fitting that several months ahead of what has become an annual summer tradition of new iPhone products that the rumors would start. The latest comes from an analyst with Morgan Stanley, who looks for the secretive company to undercut the price point of its low-end iPhone 3G with a new model priced under $99.

Enterprise Mobile Today takes a look at the report, which looks for multiple new iPhone models coming out of Apple this summer.

Apple is widely expected to deliver its fourth-generation iPhone this summer, continuing the process of annual updates that it has for the last three summers. But in addition to unveiling a new high-end phone, there may be a low-end iPhone on the way that is even cheaper than Apple’s current $99 offering.

Morgan Stanley analyst Katy Huberty issued a research note on Friday covering a variety of Apple (NASDAQ: AAPL) issues, but the big takeaway is Huberty believes that Apple will introduce a new model that’s even more affordable than the current $99 iPhone 3G now on the market.

“The cost of device and service plan is currently the biggest barrier to incremental demand in both mature markets like the U.S. and emerging markets like China,” she wrote.

She expects Apple to address that in June by introducing multiple new iPhone products. “We expect Apple to launch new iPhones in June that offer both a lower total cost of ownership and new functionality, potentially including gesture-based technology,” she wrote.

Read the full story at Enterprise Mobile Today:

Could a Cheaper iPhone Be On the Way?

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