Analyst: Lower Cost iPhone Models Coming in June

Submitted by lalit on February 26, 2010 - 1:50pm.

In a research note by Morgan Stanley analyst Katy Huberty predicted that Apple would introduce lower cost iPhone models with cheaper service plans to decrease total cost of iPhone ownership. According to Katy, the biggest barriers to higher iPhone adoption are cost of the device and service plan cost. And in June Apple will introduce iPhone models that will be more pocket friendly.

Katy wrote in the research note “We expect Apple to launch new iPhones in June that offer both a lower total cost of ownership and new functionality, potentially including gesture based technology.”
As for upcoming iPad launch Katy wrote “ We expect Apple to ship its first iPad and announce additional content deals in late March to better than expected demand.” Katy estimated that Apple would sell 6 million iPad units in 2010.

Most iPhone users use less than 250MB of data per month, which is 5 times more than average smartphone users, but is nowhere near the 5GB limit that most carriers apply to the $30 unlimited data plan required by iPhone owners. If Apple and AT&T can offer a $15 250MB data plan similar to what they will be offering with iPad, iPhone adoption will increase exponentially.
[Via AppleInsider]