I don't believe that Apple will allow its brand to be diminished in this way. Nor do I believe that Apple is interested in targeting the low-end segment. What I do believe is that Apple wants to (at least in some way) make the iPhone more accessible (from a price perspective) in emerging markets, where there is huge potential for growth. As I said in a previous post, we can debate (as we've been doing) whether Apple is better served by launching a new, low-cost phone or by simply utilizing the older models. However, I'm confident that Apple can make a quality, low-cost phone that does not come across as "cheap" like many of the Android devices do. As we all know, purchasing one Apple device is the "gateway drug" that leads to purchasing more Apple devices. I was a die-hard Android guy, but after I bought my iPad, the iPhone shortly followed.
So what's wrong with the iPhone 5 (or the next variant of iPhone) in the emerging markets? Why not just simply release them like we release iPhone's here?
I think we understand that the problem with that is the pricing...these emerging markets that people keep referring to want the ULTRA cheap phones, the phones that we consider junk here in the U.S. Android has that market in a strong hold, they make a lot of crap...and they don't have to charge anything for it so it becomes appealing in areas where income levels are significantly lower than our own middle class in the U.S. (which, from what I understand, is where most iPhone sales come from in the states, so I think it would be a pretty safe bet the same follows into these emerging markets as well, where the middle class is the bulk of the consumer base).
So Apple releases this cheap iPhone. Maybe its a great phone...maybe the build quality is top notch and the features are what you would expect from a lower end model, and in the end, you kind of have an "Air vs. Pro" kind of deal, the iPhone vs. the quintessential iPhone "Pro". That works, it doesn't really diminish the brand, and it becomes a kind of "go to" phone for the budget minded. Do you really think this kind of iPhone would be the device that would unlock those emerging markets you keep describing though? It seems to me that the kind of phone that Apple would probably release as their entry level model would still not be appealing to these markets vs. the kinds of phones they are so focused on now that run Android OS.
At any rate, I guess we'll see. I can't fathom a phone that falls below a level of Apples luxury brand standards, and I can't imagine said phone would be appealing to the emerging markets because it won't be budget friendly enough...which is why I really don't see the purpose of a new device when they can just shovel off the iPhone 4S for next to nothing and appease these markets with that.