While the premium model will carry on from where iPhone 5 has left off, this cheap model will be slotted a little behind it. For example the premium model may have a 12 MP camera, the rumoured cheap iPhone will come fitted with a 5MP or 8MP camera. It may not even have Retina display--the screen Apple introduced with iPhone 4. It will sell for a reduced price of over Rs 20,000 ($330-$400) as opposed to Rs 45,000 for the top model.
Those who say that the phone may not exist believe that there is no reason for Apple to launch a trimmed down version. By launching a cheaper model Apple will be bringing down its profit. Volume of sales doesn't really matter if there is no great margin for the company. We know Nokia will confirm that!
They point out that the recently leaked images, which are, supposedly, of the outer shell of the rumoured device, lack physical control buttons or even slots. That is not in tune with the iPhone or iPad hardware we are familiar with until now. Unless Apple is going to introduce a totally new way of communicating with the hardware, those pictures may not be genuine.
But those who say that such a device exists argue that Apple has sensed the premium smartphone market has become saturated and that the high end users are not all that enthusiastic in upgrading their devices each year. They also say that the company has realised that the future may be in developing countries like India. So Apple will bring out a compromised solution like this.
Yes, Apple needs cheaper devices if it wants better penetration in price sensitive markets like India.
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