Apple is reportedly gearing up production for the next iPhone, possibly for a September launch, with an order of 15 million new devices. But it's not yet clear if the next incarnation of the trend-setting smartphone will be an iPhone 4S or an iPhone 5.
Some Apple-watchers have been calling the new product the iPhone 5, at least in part because it will use the company's new version of its mobile operating system, iOS 5. Others are not expecting major new features, and so are calling the upcoming model the 4S, in keeping with Apple's previous model-refresh that it called the 3GS.
Pre-Paid Market
In late June, Deutsche Bank analyst Chris Whitmore told his clients that the September release would feature both a 5 and a 4S-like model. He noted that, given the problems faced by Nokia and Blackberry-maker Research in Motion, Apple would be wise to "aggressively" expand its product line more in the mid-range market of $300-$500 devices.
In Whitmore's view, a 4S with a pre-paid voice plan would fit the bill, especially in the global market. His projection is based on assumptions about strategy and not evidence, but there are other online reports that Taiwan-based manufacturer Pegatron Technology has an order for 15 million devices. The reports indicate that parts are being supplied to Pegatron from plants in Shanghai, China, and that Pegatron has begun hiring to help meet its order.
That order, according to unnamed industry sources, is targeting a September release of either 5's or 4S's. Even if some of the new smartphones are called 5's, the expectation by many observers is that no major new features are expected -- meaning that, nomenclature aside, the launch may be more about refreshing the product line and lowering price points than advancing the iPhone's feature set.
iPhone 5 improvements over the iPhone 4 could include a dual-core processor, steel casing instead of glass, and a higher quality camera.
'Pure Speculation'
Most observers had expected that, keeping with its past practices, Apple would launch its new iPhone this summer, but that appears to have been delayed.
Avi Greengart, an analyst with industry research firm Current Analysis, said that, while he thinks it's a relatively safe bet Apple will have new products out by the time holiday season rolls around, predictions about what to expect are "pure speculation."
Greengart said it's clear that "Apple does need to address the pre-paid market segment." In the overall global market, he said, "many consumers simply can't afford" most iPhones.
What is not clear, he noted, is whether the company is going to release this fall two new models, or even take other possible directions -- pricing existing iPhones lower, for instance, releasing an iPhone that will support 4G/LTE connectivity, or even possibly release an iPhone with a QWERTY physical keyboard. Greengart said his analysis has consistently shown that Apple is missing a number of potential buyers because they want a keyboard.
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