Apple plots lower-cost iPhone to boost market share

by Becky Wilkerson, marketingmagazine.co.uk 05-Jun-09, 09:45

LONDON - Apple is planning to introduce a less expensive version of its iPhone to increase demand and boost the firm's share of the web-surfing devices market.

/* Style Definitions */

table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:"";
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman";
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}

The initiative is expected to be announced at the company's developer conference on Monday and the anticipated new phones could go into production in July.

Analysts have said that the company was likely to unveil a $149 phone (£93) or a $99 (£62) one - down from the current lowest-priced version at $199 (£124).

Apple has an 11% share of the global smart phone market, behind Nokia with 41%. A survey of consumers has indicated that a $50 (£31) price cut could boost demand by 50% and $100 (£62) by 100%.