Two New iPhones: How About Them Apples?

This month, Apple‘s (NASDAQ:AAPL) WWDC came and went without the introduction of a new iPhone, though the company did present a new iOS for mobile devices. Speculation has been that Apple’s development of a new smartphone was hindered by supply shortages resulting from the earthquake in Japan, and it was leaked recently that Apple plans to introduce a new iPhone in September. Now analysts at Deutsche Bank (NYSE:DB) say we might expect not one, but two new iPhones this fall.

In the past, Apple has made both minor and major improvements upon previous iPhone models. The iPhone 3 tweaked to become the iPhone 3GS — a minor improvement. But with the introduction of the iPhone 4, with two cameras, FaceTime, and many other new features, Apple had made what we would term a “major improvement” upon the earlier model. With a new phone expected soon, people have been wondering whether they should expect an iPhone 4S or an iPhone 5.

According to Deutsche Bank’s Chris Whitmore, Apple is likely to introduce both. In a note issued early this morning, he writes, “With Nokia (NYSE:NOK) and RIMM (NASDAQ:RIMM) struggling…the time is right for Apple to aggressively penetrate the mid range smart-phone market (i.e. $300-500 category) to dramatically expand its [total addressable market] and market share.” Whitmore suggests the company will release an unlocked iPhone 4S that comes with a pre-paid voice plan to appeal to global markets that largely prefer pre-paid phone services, markets like Africa, Asia, and Latin America where iPhone penetration has been low.

Apple already released an unlocked iPhone 4 in the U.S. earlier this month and it has been speculated for some time that they would release a lower-end iPhone to increase their market share and compete with less-expensive smartphones.

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