Analysts are increasingly suggesting that Apple (NASDAQ:AAPL) should release a low-cost version of its iPhone in order to challenge Samsung’s (SSNLF.PK) dominance of the low-end smartphone market. Topeka Capital Markets analyst Brian White believes that when the low-cost iPhone does arrive, it will be in multiple colors.
According to White’s supply chain checks, the low-cost iPhone – otherwise known as the “iPhone mini” – will be offered in at least five different colors. White also believes that the low-cost iPhone will debut before Apple refreshes the flagship version of its iPhone.
In a note to investors via The Street, White wrote, “Strangely enough and unrelated to the ‘iPhone mini’ with plastic casing, we had a discussion with a tech supply chain company around a ‘lower-priced iPhone 5′ that would be similar in look to the current iPhone 5 but with edges that are more rounded, a slightly thicker body, more color options and at a lower price.”
Apple CEO Tim Cook helped stoke speculation about the possible launch of a low-cost iPhone when he refused to dismiss the idea of releasing multiple versions of the iPhone. “We haven’t so far. That doesn’t shut out the future. It takes a lot of really hard work to do a phone when you manage the hardware and software and services in it. We’ve put our focused on doing that right. We haven’t been focused on working multiple lines,” stated Cook at the All Things D conference.
White maintains a “Buy” rating on Apple stock and a price target of $888. Here’s how Apple has been trading over the past week.
Follow Nathanael on Twitter (@ArnoldEtan_WSCS)
Don’t Miss: Tech, Telecom, and the Government: Who’s Lying?