Apple to introduce $99 or $149 iPhone on Monday, analysts say

Apple to introduce $99 or $149 iPhone on Monday, analysts say

Summary: Apple plans to introduce a cheaper version of its popular iPhone on Monday, possibly helping the company increase its share of the smartphone market, according to a Financial Times report.Analysts said in the article that Apple wants to show off either a $149 phone or a $99 phone at its Worldwide Developer's Conference.

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Apple plans to introduce a cheaper version of its popular iPhone on Monday, possibly helping the company increase its share of the smartphone market, according to a Financial Times report.

Analysts said in the article that Apple wants to show off either a $149 phone or a $99 phone at its Worldwide Developer's Conference. The current low end price of the device is $199, subsidized in exchange for AT&T's contract.

That the economic downturn hasn't quite rebounded only makes such a move more possible. One analyst said that a $50 price cut could increase demand by 50 percent and a $100 cut by 100 percent.

Globally, Apple is hardly the mobile leader: it sells about 11 percent of the world's smartphones, trailing Nokia's 41 percent and Research in Motion's 20 percent, according to Gartner figures from the first quarter.

Complicating these figures further is the launch of Palm's highly-anticipated Pre smartphone on June 6 and the bevy of Google Android-powered phones due to launch this summer.

Regardless of price point, analysts are still expecting Apple to introduce a new iPhone on Monday, packing various new features. It's expected to start production in July with Apple's iPhone OS 3.0.

Topics: Smartphones, Apple, Hardware, iPhone, Mobility, Telcos

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

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14 comments
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  • Breaking News!!!

    Wow!!!

    So Apple are considering releasing a cheaper iPhone at maybe $99 or $149 AND they will most likely update the current iPhone with some new features.

    Talk about getting the scoop there Andrew

    Just remember people... you heard it here first (about 3 months ago!!)

    Is that Assistant Editor or Assistant [b]to the[/b] Editor?
    ;-)

    iTeaBoy
    • Assisted commenting.

      iTeaBoy,

      Actually, $99 iPhone rumors started about eight months ago, and we covered it right here on The Toybox:

      12/10/08: $99 iPhone? Don't hold your breath (and why 'Apple = premium' isn't the answer)
      http://blogs.zdnet.com/gadgetreviews/?p=617

      12/8/08: CONFIRMED: Two iPhone models to sell at Walmart (this month!)
      http://blogs.zdnet.com/gadgetreviews/?p=607

      12/4/08: More rumors: Apple to sell $99 iPhone at Walmart
      http://blogs.zdnet.com/gadgetreviews/?p=594

      10/27/08: Could a $99 iPhone rule the world?
      http://blogs.zdnet.com/gadgetreviews/?p=448

      If you're wondering which features are in question, see Jennifer Bergen's recent post on the subject:

      6/2/09: New iPhone rumors mapped out
      http://blogs.zdnet.com/gadgetreviews/?p=4655

      And if you're looking for a big picture, what's-it-all-mean story, you can find that here, too:

      5/19/09: Summer soap opera: Palm Pre, Apple iPhone, Android army usher in "smart" age
      http://blogs.zdnet.com/gadgetreviews/?p=4437
      andrew.nusca
      • My point exactly

        You've not told us anything that hasn't been said over and over and over again for the past however many months.

        Re my 'Assistant to the Editor' comment - I take it you're not a fan of 'The Office'??
        iTeaBoy
  • RE: Apple to introduce $99 or $149 iPhone on Monday, analysts say

    with AMOLED apple logo?
    dancorp
  • RE: Apple to introduce $99 or $149 iPhone on Monday, analysts say

    This is stupid, it isn't the phone that is the problem, it's the AT&T plans! Put this on Metro, Alltel, Verizon or T-Mobile and it will surpass RIM within 6 Months.
    slickjim
    • No chance, IPhone is not a business phone

      RIM is primarily for business users and the IPhone does not handle business as well.
      drewitz@...
      • Yes it would...

        True but the recent big increase in Blackberry sales came via the Curve and 100% of the people I know that bought them use them for personal use.

        Ultimately the personal use market is 10x that of the business market for Smart Phones because not everyone in a corporation is given or allowed to have a Crackberry.

        So to my point and yes it would happen, if Apple were to release for the other carriers they would quickly surpass RIM in thr smart phone segment without issue.

        Now why this would happen is simple, most people want a desktop web experience on their phone and the Blackberry is very limited in this area... Some sites based on Java won't work on the phone and none based on flash will ever work so in reality this is an area that the I-Phone has an advantage.
        fud_buster@...
  • iYawn.

    nt
    Hallowed are the Ori
    • Agreed

      The phone is not all that exciting, and in my mind it's not the cost of the phone that is the issue. It's the ongoing cost of owning it. After a few months of paying AT&T you will have easily exceeded the cost of the phone. You're stuck with a single service provider that also happens to provide overall crappy connections.
      shawkins
  • RE: Apple to introduce $99 or $149 iPhone on Monday, analysts say

    As long as:

    1: No sanely priced data plans

    2: Forced to be inprisonned intro a contract(atm it's 3 years but even if it was 1 year...)

    I will not buy an iPhone...
    Ceridan
  • RE: Apple to introduce $99 or $149 iPhone on Monday, analysts say

    I agree w/ you Peter. If Apple puts this phone on all carriers
    it will blow RIM out the water. Being that it's stuck on AT&T
    for however many more years it's not going to do the
    numbers it should. I have an Iphone and i would love to try
    service on a different carrier. Just my 2 cents.
    NathanNuckles
    • ..

      Working for a mobile phone company I find that most blackberry owners buy them for the push email service and the sychronisation capabilities.
      Either way the iphone doesnt match up and of you want to use your phone as a laptop replacement it doesnt compete with winmo either.
      Its very slick but lacks alot of basic features even after the 3.0 update becomes available.
      jdbukis@...
  • Ignore

    clicked wrong button.
    fud_buster@...
  • Post shoulda been called...

    "Apple to introduce new iPhone, reduces price on current 8gb units to $99"
    TeamDrunkenPanda