Apple Inc. (NASDAQ: AAPL) may not be risking much if it releases a new, cheaper version of the iPhone, which according to rumors will happen in the third quarter. If the smartphone were to be on the market in the developed world, particularly the United States, it might cannibalize sales of more expensive models. However, the lower priced handset probably will be destined for poorer and less developed nations, where expensive versions of the iPhone are unlikely to catch on.
Some sources claimed that they have seen the sample of the low-cost iPhone, which will come with a larger display, meeting the prevailing trend for the adoption of 5-inch displays for high-end models. They added that the low-priced iPhone will also have a brand new exterior design.