Analysts foreseeing Apple introduce two iPhones at Tuesday’s event should get their eyes fixed. That’s the message from a Wall Street expert predicting the tech giant will unveil one new handset, but reduce prices on the iPhone 4 to $99 and the iPhone 3GS to free with carrier contract.
Apple will announce a new smartphone – either the “iPhone 5” or “iPhone 4S,” RBC Capital Markets analyst Mike Abramsky writes Monday. Some observers suggested the Cupertino, Calif. company would announce the highly-awaited iPhone 5 along with an inexpensive handset perhaps destined for China.
Traditionally, when Apple unveils a new iPhone, it axes the second-year version. When the company unveiled the iPhone 4 in 2010, it cut the iPhone 3GS price first to $99, then later reduced the handset to $49 with contract.
Earlier this year, Abramsky said Apple would not release a low-cost iPhone unless it provided an “innovative, category-killer experience.” He sees converting the iPhone 3GS to free with contract both with consumers seeking an inexpensive iPhone experience while also rivaling Android’s growth in the low-price category.
