IPhone Mini 2013?

A major U.S. newspaper claims that Apple is working on a cheaper iPhone, which could leave this year.



Apple is creating a cheaper iPhone to be released this year, according to the Wall Street Journal.

The device looks similar to the current iPhone, reports Reuters, but would be crafted from less expensive materials, such as polycarbonate shell.

This info comes from the Wall Street Journal from an anonymous source who claims that Apple has decided to go this route in response to the unprecedented growth of Samsung between 2011 and 2012.

Apple analysts have decided importance for the company to release a product cheaper, especially to target emerging markets and users of pre-paid cards, in order to remain viable over the long term.

Analyst Sector & Sovereign Research, Paul Sagawa, issued the following note to investors concerning the business of the iPhone:

"See smartphones competitors achieve some market similar to Apple's iPhone and rival platforms ready to subsidize the sale of equipment to build their base for profit web applications, I am skeptical as to whether the approach to high-margin can be maintained for a long time yet "

He added: "The more aggressive strategy seems to be the best in the long term, but will require a significant cultural change, a significant reinvestment of capital."

Apple declined to comment on these rumors.