Rumor has it, the entry level iPhone will supposedly feature the same 4-inch Retina display as Apple’s current-generation iPhone 5. Analyst Ming-Chi Kuo of KGI Securities, told AppleInsider that the budget iPhone will not include a larger 4.8 inch panel, but instead will utilize the same 4 inch display as the iPhone 5. He also added that, it will include a slim plastic case and will be available in 6 different colors. However, no release date has been set.

Apple Inc. has reportedly been considering a cheaper version of the iPhone since 2009, but now plans are becoming more solid, as it loses sales to its competitors.
Although the iPhone still remains the top selling smart phone in the US, its stocks have plummeted in China and remain low in other emerging markets. Analysts debate why the stock has plummeted and why Apple looks as though it is losing market share in the smartphone industry. Have they become boring? Is Apple just not the same without the vision of Steve Jobs? They really postponed the launch of the iPhone 5 and had consumers on the edge about what it was going to include. Perhaps a sooner debut would have not increased expectations so much? Maybe they just cannot keep up. Rumors had it that the iPhone 5 would be available in different colors and now analysts are saying that this potential (cheaper) model will be available in different colors, is that fair?

One can argue that if iPhones become available to the masses, it will loose it's appeal. People work to attain an item because not everyone else can have it and that in itself brings them pleasure be it a phone, a car, or an expensive purse. If Gucci went out and created a cheaper version of their brand, how would others perceive the brand? Would it be that they are in trouble financially and therefore are trying to appeal to a larger market? Would less people buy Gucci because it is available to everyone else? Or, does it not matter if less of the old people purchase it because they now appeal to a much larger audience with lower profit margins. Does the same apply for Apple? What if Apple designs a cheaper phone that is much different than the other models that they have released would it then be okay? Will they just have this particular model available for use in certain markets and perhaps not in the US? Will this upset consumers or will this make them feel better that they still have a better model of the phone? Currently the used market is great and many people justify purchasing a new phone because they can sell their old phone. If you purchased your iPhone with a plan from a mobile carrier, the subsidized cost makes it even more appealing to sell the old phone and purchase the new phone as the difference is minimal. If buying a used iPhone 4S is the same as buying this new cheaper phone which will consumers select? If the cost of my old phone diminishes significantly because this new model is out, does that mean people will be more hesitant about upgrading?