APPLE’S CHEAPER IPHONE COULD USE ‘A LESS POWERFUL LOWER-END SNAPDRAGON’ PROCESSOR

So how will Apple (AAPL) release a cheaper version of its iPhone while still maintaining the desirability and high margins of its standard model? Forbes points us to some analysis from research firm Detwiler Fenton that suggests Apple could look outside its own hardware to build a lower-cost smartphone. More specifically, the firm believes Apple could use “a less powerful lower-end Snapdragon” processor from Qualcomm (QCOM) that would deliver inferior computing and graphics capabilities than standard iPhones that use Apple’s in-house A6 processor. The reason for this, Detwiler Fenton writes, is that Apple “would not want a value priced iPhone to offer the same kind of graphics and video support, processing power etc. that its premium priced device would, therefore a less powerful lower-end Snapdragon integrated solution would help segment the product.”