How An iPhone 5 Release Aims For Android

So far all of the iPhone 5 news and rumors we have posted suggest that it will be a high-end smartphone and a successor to 2010′s iPhone 4, however earlier today we reported a potential iPhone Nano release, which got us thinking, will the iPhone 5 be a cut-down smaller version of the iPhone 4?

Currently Apple has a fair share of the high-end market with the iPhone 4, however in terms of mid-low-end devices they offer nothing, let’s face it a lot of consumers do not want to spend $199 – $299 on a smartphone which is tied to a two-year contact, therefore a cheaper iPhone release may be the way forward.

Our earlier post suggested that the rumored smaller iPhone may cost just $200, we are now hearing that this could potentially be a contract-free price, obviously the hardware within this smartphone will not be anywhere as near as advanced as the iPhone 4, however not everyone wants an “all singing, all dancing” handset.

Last year there was a huge barrage of Android smartphones released which helped Android achieve its massive growth (32.9% of Q4 2010′s market according to Bloomberg), therefore it wouldn’t be a huge shock if Apple released a low-priced basic iPhone to combat this in 2011, the question is will it be too little too late?

To many a $200 contract-free price tag sounds a bit far-fetched, however let’s not forget that Apple bring in income through the App Store, therefore they could potentially release a cut-down iPhone at almost cost price to combat Android and then reap the benefits as consumers buy apps and games.

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