He argues that the "right way" for Apple to dive to the bottom is "to set up a separate brand and perhaps even a wholly- owned subsidiary."
And then he adds: "But we don't expect Apple to veer from its current strategy." [Emphasis added]
"The expected low-end' iPhone probably won't be priced below $350-400," he explains. "Even at that level the gross margin could be near 30% and become an example of the company's occasional willingness to accept lower margins to penetrate a market, as CFO Peter Oppenheimer said recently. In Figure 9 we suggest that the $300-500 price range only will be 10% of the market in 2014. That still means millions of incremental buyers in emerging markets but will not radically change Apple's market share."
Back to the weasel-supplied photos. Left unanswered, assuming these shells are real, is what, exactly, they are: final products, prototypes at some stage in the development process, or even mockups or test shells for one or another future iPhone model? Can these be taken as "proof" of the existence of plastic-bodied 2013 iPhone?
Hemmerstoffer seems to think the picture is part of a pattern that leads one to answer "yes" but he does raise a caution. "The shadow of a vulgar Chinese copy nevertheless still looms again over this mysterious colorful iPhone," he writes.
When will the weasels learn to create elegant Chinese copies?
iPhone 6 will have Apple's A8 processor, made by TSMC
According to Softpedia's Filip Truta, Apple plans to launch iPhone 6 in 2014 with an A8 processor that will be manufactured by TSMC instead of the long-time iPhone chip supplier Samsung.
Truta bases his post, headlined "Apple Signs with TSMC for iPhone 6 A8' Chip Production and Beyond," on a recent story in The Wall Street Journal. And not only that, Truta also claims that Apple will release the iPhone 5S with the as-yet-unannounced A7 chip "with enhanced capabilities."
"The A7 will be the last A-series chip made by Samsung, or so it is being suggested by a Wall Street Journal report which takes a close look at the Korean company's failing marriage with Apple," Truta explains helpfully.
The only problem is that, though the July 1 Journal article in question did indeed take a close look at Apple's relationship with Samsung it didn't say anything about the iPhone 5S or the iPhone 6. And in fact, the article explicitly says "Despite the deal [with TSMC], Samsung will remain the primary supplier through next year , one of these executives said."
The thrust of the article is that Apple has finally signed a deal, after about three years of talks, with Taiwan Semiconductor Manufacturing Co. (TSMC) to manufacture at least some of the Apple-designed A series processors, starting in 2014. Samsung has been the sole foundry for the chips since the advent of both the iPhone and iPad. According to the Journal, "The process had been beset by glitches preventing the [TSMC] chips from meeting Apple's speed and power standards, TSMC officials said."
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