Plenty of rumors have popped up regarding a cheaper Apple iPhone, with the rumors getting more frequent and in greater quantities as of late. The latest rumor out of the mill is that Apple may ditch the A6 processor and go with a cheaper alternative, such as a low-end Snapdragon, in order to maintain profit margins.
Analysts at the Detwiler Fenton firm predict the following:
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.
Of course, this may not be the case. As with all rumors, take it with a grain of salt. After all, why would Apple want to ditch its current method of offering a budget smartphone? When the new model iPhone comes out, Apple drops the price on the older models, usually continuing to produce the two previous generations.
So far, this method of fleshing out the product line has worked and it saves Apple from having to spend to develop a new device. Of course, with Apple producing the iPad mini, this rumor does gain a bit more credence. In the end, we will only be able to know for sure that Apple is working on a budget device if parts start leaking or Apple announces the device.