Cook Hints Lower-Priced Unlocked iPhone

John Gruber:

And if you read between the lines in Cook’s comments on the prepaid market, he seems to be hinting strongly that Apple is going to soon pursue the unlocked market with a lower-priced no-contract iPhone. Maybe the iPod Touch goes away, replaced by a $249 or $299 no-contract iPhone?

I don’t see a contract-free iPhone replacing the iPod touch. In the Q&A after Apple’s earnings announcement Cook explains that contract-free iPhones are popular in geographies where credit systems aren’t as robust as they are in the U.S., Western Europe, Japan, Australia, etc. I think Apple might come out with a cheaper contract-free iPhone and target developing countries, specifically China and Brazil, two companies Cook mentioned as being largely untapped with potential for significant growth for iPhone sales.

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