This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple's 'Cheap' iPhone: The World Gets a Glimpse

Stocks in this article: AAPLGOOG

NEW YORK ( TheStreet) -- In an attempt to hold onto market share, Apple (AAPL) is reportedly going to announce a low-end iPhone. A picture of the reported packaging, dubbed the iPhone 5C, has been put on the Web for the world to see.

Chinese Internet site WeiPhone posted pictures of the casing for the rumored phone. The C could stand for color, as it's been reported the lower-end iPhone could come in multiple colors, similar to what Apple has done with the iPod Nano. Currently, the iPhone only comes in white and black in multiple sizes.

CEO Tim Cook seemed to fuel speculation that Apple could potentially make a lower-end phone to stave off competition from Google's (GOOG) Android, which is the dominant operating system in the market. "The only thing we'll never do is make a crappy product," Cook said at a Goldman Sachs conference in February. "We're going to make a great product. And so that's the only religion that we have is we must do something great, something bold, something ambitious."

Pricing of the low-end iPhone is still anyone's guess, with several analysts on Wall Street throwing out numbers as low as $329, compared to $649 for the iPhone 5. The average selling price (ASP) for the iPhone in Apple's fiscal third quarter dropped to $581, falling below $600, further fueling speculation that Apple could announce a lower-end phone as people want Apple product, but are not willing to pay up for them if there is no perceived value.

Apple could not be immediately reached for comment for this story.

Apple has lost market share in the smartphone market, particularly to the team of Samsung and Google. According to research firm IDC, Samsung held 30.4% of the worldwide smartphone market as of the end of the second quarter, compared to 13.1% for Apple. In the second quarter of 2012, Apple held 16.6% of the market, compared to 32.2% for Samsung.

Apple sold 31.2 million iPhones in its fiscal third quarter, up 20% year over year, helping Apple generate $35.3 billion in revenue for the quarter.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,502.04 +102.37 0.62%
S&P 500 1,927.75 +23.74 1.25%
NASDAQ 4,385.3310 +69.2570 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs