- About MacNews
- Category Reviews
- Tech Support
- Connect Tools
In a note to clients, the analyst predicts that we'll see an US$99 iPhone this summer. According to Silicon Valley Insider, Abramsky said:
Â° The main cost reductions would come from fewer features. Abramsky thinks it might have a lower-resolution camera, no 3G Internet access or GPS, and a cheaper data plan (~$15/month) with a usage cap.
Â° Meanwhile, the iPhone 3G will get feature upgrades, such as a better camera, video capabilities.
Â° Abramsky thinks Apple could sell 20-30 million of these cheaper iPhones in fiscal 2010, boosting Apple's smartphone market share to almost 20 percent.
Â° However, a cheaper iPhone will eat into iPhone 3G and iPod sales. And a lower subsidy and lower margins means Apple will have to sell three times as many to make the same gross profit from one iPhone 3G. Abramsky expects fiscal 2010 iPhone gross margins to shrink to 35 to 37 percent from 50-plus percent.
Be sure to check out the Macsimum Valetine's Day Coupon book below. It has discounts available only to Macsimum readers.