Consumer Electronics News Byte: Why Apple's Budget IPhone is Risky Business

Wochit 1:17 mins

Apple's plan to release a budget iPhone is clearly fraught with peril for the company: It needs to make sure that it gets an affordable device out to consumers in emerging markets without sacrificing too much of the profit margins that have made it one of the most profitable companies in world history. Barron's points us to a new research note from?UBS analyst Steve Milunovich, who outlines in detail why making a cheaper iPhone is really a risk for Apple's traditional business model. In particular,?Milunovich thinks that by going "down market," Apple will be well outside its comfort zone as a premium brand. The X1 is a combination digital converter and headphone amplifier, and the Audiophiliac thinks it will make your iPhone, iPad, or iPod sound better than ever! School might have only been let out recently, but Apple has already offered up some deals to student-shoppers.The company announced that students who buy a Mac through the Apple Online Store for Education will receive a $100 App Store Gift Card. Students who buy an iPad or iPhone will receive a $50 gift card.

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