iPhone Lite Could Be On The Way

Apple may be preparing to bring an iPhone 5 Lite to the market with evidence piling up to support this idea.

Michael Walkley, analyst for Canaccord Genuity, said that keeping the older (and cheaper) iPhone and iPad versions on sale alongside new devices has been a wise strategy for Apple. Due to its lower price, iPhone 3GS is now outselling new Android devices. For instance, 16 GB and 32 GB iPad devices have outsold iPad 2 devices and iPhone 3GS outran HTC Inspire and Motorola Atrix sales.

Android may have increased its market share but it has not been successful in stealing Apple’s customers. Apple began their lower price selling strategy with the iPhone 3GS and users can now get an iPhone 3G for only $49 when signing up to a two-year contract. The initial price was $99.

If Apple is to follow the current strategy, they might as well sell their iPhone 4 at a lower price when iPhone 5 hits the stores. From an economic point of view, this could be a good decision since iPhone 4 materials are becoming cheaper with time.

Apple might have actually designed two phones for 2011, a full-featured iPhone 5 and a new iPhone similar to iPhone 4, yet much cheaper, although we previously reported why this is unlikely to happen. Lower prices mean that Apple could sell their iPhone Lite to out-do the competition without fragmenting their platform.