Chris O’Brien, Los Angeles Times:
After the Apple earnings conference call Tuesday, several analysts noted that the average selling price of iPhones had fallen to $613 from $641 in the previous quarter, the result of what William Power, a Baird analyst, said in a report was “greater focus on the lower-priced iPhone 4.”
The iPhone 4 is still a decent piece of hardware, which poses a difficult problem for Apple: how can they sell more of the recent higher-priced models when the old, less-expensive models are great? Remember that challenge when you consider the rumours of a cheaper iPhone model. Not only would such a model need to be less expensive, it would need to be produced with a bigger profit margin margin, too.