Analyst Wars: Don't Expect An Affordable iPhone in 2011

On Monday, Deutsche Bank analyst Chris Whitmore told his clients to expect Apple to release two iPhones, one of which would be an affordable device to help Apple grab a part of the pre-paid mobile market share. But BMO Capital analyst Keith Bachman says Apple is all about making exciting high-end devices, and he doesn't see them releasing a low-end phone this year. Bachman believes that AT&T's re-marketed iPhone 3GS will be the phone Apple uses to hook budget-conscious consumers.

Affordable iPhone

In March, reports did surface that Apple COO Tim Cook said Apple was looking at the prepaid market and doesn’t want its products to be “just for the rich." Plus recent rumors have supported Apple releasing either the iPhone 4S or iPhone 5 in 2011. So is it crazy to believe that Apple will break tradition and announce two devices this year?


Let me see if I have this logical straight:

I don't even have enough money for the CHEAPEST monthly contract.... but I have $500 for a 'cheap iphone'... and STILL have to pay month-by-month for 2 years. (If I want to keep actually USING the phone.)


But I don't want to pay only $49 for the iphone... and pay every month... for 2 years.


I'm assuming not everyone can get a contract. Plus people can save for the phone, then use it when they have money to buy minutes. Not everyone can afford to pay every month for two-years.