What should the rumored budget iPhone cost and how low could Apple price it without sacrificing its industry-leading profits? Jean-Louis Gassée, a former executive at Apple, where he worked from 1981 to 1990, ran some numbers on his Monday Note blog to try and make sense of the idea. The crux: there’s no way Apple could make a compelling, inexpensive device sporting today’s hardware encased in a less exquisite (dare I say, plasticky?) body without sacrificing its powerful margins.
Should the Cupertino, California company in fact pursue the low-cost iPhone, the move will be remembered as the augur of a new era of lower Apple margins and as such likely signals a new brutal phase in the Smartphone Wars…(...) Read the rest of Budget iPhone: the augur of a new era of lower Apple margins