Low-cost iPhone heading to emerging markets this year -- report

Apple plans to launch a new iPhone version designed exclusively for China and emerging markets that could be available in the second half of 2013, according to Digitimes' sources.

Apple is working on a low-cost iPhone for emerging markets around the world, a new report claims.
The company is working on an iPhone for China and emerging markets that would launch in the second half of 2013, Digitimes is reporting, citing unnamed sources in Apple's supply chain. Those sources say that the iPhone will have a large display, but will come with a revamped design and be much cheaper than the company's current handset.
That said, one part of the Digitimes rumor doesn't quite add up: the low-cost iPhone will have a larger screen than the iPhone 5's current 4-inch model, according to the sources. Considering that a larger display would make more sense in a higher-end product, it's possible that the sources are plain wrong -- a scenario that often times plays out with Digitimes' unnamed sources.
Still, this isn't the first time we've heard of the possibility of Apple launching a new, cheaper iPhone. Last week, Strategy Analytics analyst Neil Mawston said he believes Apple could launch an "iPhone Mini at some point over the next three years to address the hundreds of millions of prepaid users worldwide that cannot afford the iPhone."
However, Mawston argues that the success of the iPhone 5 means Apple has no reason to launch a cheaper handset this year. Digitimes' sources say that the device they have seen will ship in the second half of 2013.
Jefferies analyst Peter Misek agrees with Digitimes' sources. He said recently that he believes a low-cost iPhone could launch this summer for $200 to $250 but that Apple hasn't given it the go-ahead so far because the company is concerned about the margin it would derive from the sale of a low-end handset.
It's not clear what a lower-cost iPhone might offer consumers. However, Digitimes' sources say that Qualcomm's dual- and quad-core Snapdragon chipsets could find their way into the device.
CNET has contacted Apple for comment on the Digitimes report. We will update this story when we hear back.

iPhone users pay highest phone bills

New data shows that 59 percent of iPhone users spend more than $100 per month on their carrier bill, while 56 percent of Windows phone users and 53 percent of Android users pay that much.

Phone users pay higher phone bills than other smartphone consumers. (Credit: CBS Interactive) Rumors of a cheaper iPhone on the horizon may come as welcome news for fans of the device -- especially because iPhone users reportedly pay the highest monthly phone bills, no matter the carrier, according to AllThingsD.
Android, Windows, and BlackBerry users spend less per month to use their smartphones, according to data by Consumer Intelligence Research Partners that was acquired by AllThingsD. It seems that the higher costs come from carriers charging more for iPhone data plans and additional wireless fees.
"We think it has to do with their data plans and carriers, rather than their usage habits," CIRP co-founder Michael Levin told AllThingsD. "They are all on expensive data plans, unlike Android users, some of which are on prepaid or unsubsidized plans with regional carriers."
The data collected is from October to December 2012 and shows that 59 percent of the iPhone users surveyed spent more than $100 per month on their plan with 10 percent of those users spending $200 or more. Only 6 percent spent $50 or less. Conversely, 13 percent of Android users spent $50 or less and 53 percent spent more than $100. Both Windows and BlackBerry users spent even less overall.

Although the monthly cost difference between the four types of devices is slight, the highest costs are still skewed toward iPhone users. This may be because iPhones are more expensive devices and carriers have to shoulder that burden.
"Given the subsidies on iPhones, the carriers are working hard to make their money back during the course of the contract," CIRP's Josh Levitz told AllThingsD. "With the exception of perhaps the hottest Android phones, we think the subsidies on Android phones are lower, so the carriers make more money even with slightly lower per-subscriber revenue."
If Apple does indeed release a cheaper iPhone, it'll be interesting to see if carriers will also lower monthly charges for the device.