Reviving talk of an “iPhone nano”, Reuters is reporting on the anticipated release of a pared-down 8GB iPhone 4 alongside the new iPhone 5 in late September, according to “two sources with knowledge of the matter”.
Asian suppliers have begun making a lower-cost version of the hot-selling smartphone with a smaller 8-gigabyte flash drive that will arrive around the same time Apple unveils its much-anticipated iPhone 5
The diverging product strategy, and the move to produce a lower-cost smartphone is part of a plan to gain traction in emerging markets such as China, where traditional rivals such as Nokia are better positioned for the entry-level Asian consumer, according to Channing Smith from the Capital Advisors Growth Fund.
A lower-priced version of iPhone 4 seems to be a necessary evil at this point in the iPhone adoption cycle, especially in emerging markets where the average income of individuals is much lower
The new low-cost iPhone 4 is expected to feature an 8GB flash drive, and similar form-factor to the existing iPhone 4, whereas the iPhone 5 will have a “bigger touch screen, better antenna and an 8-megapixel camera”.
Surprisingly, the source also added that the iPhone 5 form-factor did not differ greatly from the iPhone 4, contradicting recent case leaks that point to a new, slimmer appearance.