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According to a report that’s appeared in the Wall Street Journal, Apple is working on a more affordable model of the iPhone. People familiar with the matter claimed that a cheaper version of the iPhone would be out by the end of the year. This alleged iPhone will look like any standard iPhone but will be made with less expensive materials such as using a shell made of polycarbonate plastic as opposed to the aluminium housing that the iPhone 5 has.
If the news is indeed true, then it will be a first for Apple to be releasing more than one iPhone model a year (Yes, there are different capacities of iPhones, but only one model per year). After the iPad mini launch, the alleged cheaper iPhone news again looks like a reactionary move from Apple to tackle the onslaught of affordable handsets from the Android camp led by its rival Samsung.
Apple saw a drop in its worldwide smartphone shipments in the third quarter of 2012. From a peak of 23 per cent in the fourth quarter of 2011 and first quarter of 2012, Apple managed only 14.6 per cent in the third quarter of 2012. On the other hand, Samsung’s share has risen from a mere 8.8 per cent in the third quarter of 2010 to 31.3 per cent in the third quarter of 2012.