Apple is apparently going to be releasing cheaper models of their phones as well as a phone with an improved chip. One of the factors affecting Apple’s profitability is that apparently people do not change high-end phones as quickly now as they did previously – probably because they don’t introduce that many new features in each model. They also have the problem that a lot of phones are being produced with tons of gadgets far more cheaply than Apple.

Apple is of course still the leading brand (and certainly is so by market capitalization also) and experts say that if Apple can produce a lower cost phone, perhaps in the $300 range, that that will convince a lot of people to pay an extra amount to have the number one brand in phones. At the moment, a new iPhone costs in the region of $650 around the world, and that is out of the reach of most. If they can produce a model, perhaps missing some of the bells and whistles at half the price, it will allow them to attack the android phones with more success that they have had thus far. That will then also give it a far more chance of making big inroads into the market it really wants, i.e. China.