Analyst Predicts Apple Will Drop iPhone 5s Price To $225: Report


Apple is expected to make a major price cut on the 4-inch iPhone 5s, which could reach a more affordable price of only $225.

Currently retailed at $450, the new price point would mean that the device is getting a 50 percent price cut.

The speculation came following the company's announcement on a new 4-inch iPhone, which is recently reported to carry the official name of iPhone SE.

For the past months, the purported successor to the iPhone 5s has been given a number of names that include iPhone 5e, iPhone 6c and iPhone 5s Mark II.

According to analyst Ming-Chi Kuo of KGI Securities, Apple will give the iPhone 5s a huge price drop in conjunction with the announcement of the iPhone SE.

The analyst believes that the upcoming 4-inch iPhone SE will retail between $400 and $500 in the United States, a price that is arguably lower than the iPhone 6s' price point that begins at $649.

At this pricing scheme, Apple should be able to gain a strong foothold among mid- to low-price markets and enhance the sales of its devices in various emerging markets such as India and China.

The analyst also speculated that the hugely discounted iPhone 5s will attract more potential buyers than the upcoming iPhone SE. As a result, Apple will most likely ship 25 million units of iPhone 5s in 2016 while the iPhone SE will ship with at least 12 million units.

The 2013 iPhone 5s is powered by the older Apple A7 SoC and M7 motion co-processor. It comes with a RAM of 1 GB and a 1,560 mAh battery. Other features include an 8-megapixel iSight rear camera, 1.2-megapixel front camera and Touch ID fingerprint sensor.

The new iPhone SE will have hardware specs that are identical with the iPhone 6s'. These include an A9 chip and NFC for Apple Pay. Design-wise, it will share a similar form factor with the iPhone 5s albeit its display will feature a slightly curved 2.5D glass.

Apple is expected to officially announce the new iPhone SE at its rumored media event in March. Apart from a new iPhone, the company may also announce the 9.7-inch iPad Pro and some updates on the Apple Watch. The event is slated to occur at Town Hall Center, California.

Image: Kārlis Dambrāns | Flickr

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