Here’s Why Apple Needs a Cheaper iPhone

Why does Apple (NASDAQ:AAPL) need a cheaper new iPhone model? According to a report by The Wall Street Journal, the prices of unlocked iPhones around the world are genuinely prohibitive for consumers, who then automatically veer toward cheaper Google (NASDAQ:GOOG) Android devices.

Should you buy or sell Apple’s stock ahead of earnings this month? Our 20-page proprietary analysis will help you save time and make money. Click here to get your SPECIAL REPORT now.

In the U.S., an iPhone 5 without a contract costs $649, the iPhone 4S is available for $549, and the iPhone 4 sells for $450. By comparison, in China, which is being touted as one of the biggest potential markets for the rumored devise, an unlocked iPhone 5 currently costs $840. The iPhone 4S sells for $713, while the iPhone 4 costs $491.

In Sweden, a new iPhone 5 without a contract comes for $918, the 4S for $735 and the 4 for $505. In Singapore, the prices are $771, $641, and $478, respectively, while in Italy they are $955, $824, and $562 respectively. Things are even worse in Brazil, which has a heavy import tax and where an unlocked iPhone 4S costs $983. The iPhone 5 is not available in that country through Apple’s online store yet, but even with a carrier contract it starts at $628.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Get our fresh Feature Stock Pick now!

Apple has, characteristically, not confirmed or denied any the news, but most reports suggest the device will come as early as the latter half of this year.

Investing Insights: Analyst: Cheaper iPhone Will Heal the Stock.