Apple Ready to Compete on Price; iPhone 3GS likely to Come for $350 Off-Contract

August 6, 2011, By Sanjeev Ramachandran

It looks like a low-cost iPhone is on its way. We hear the iPhone 3GS, which will be sold for $350 off-contract, could be the budget iPhone that is filling headline space at the moment.

Selling the iPhone 3GS at an economical price will not be a big deal for Apple as the production cost is projected to be low as well. But, not to worry, there will not be a significant compromise on quality.

RBC Capital Market analyst Mike Abramsky has been quoted as saying that he had discussed a whole lot of Apple issues ranging from patent battles to the prospects of a low-priced iPhone, with Apple’s Chief Financial Officer Peter Oppenheimer and Chief Operating Officer Tim Cook. Cook had earlier announced about the cheaper phone and had said that they did not want to be for “just the rich”.

Abramsky believes that Apple’s primary criterion for launching a lower end iPhone was an innovative, category-killer experience. It is also expected to help Apple to take on low priced Android devices, and help expand its business in India and China.

That could well mean there’s some tough competition staring in the face of companies like Nokia and Research In Motion very soon.

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