Apple's low-cost iPhone will surprise with just how inexpensive it is. Sources tell Fast Company that it'll start at just $399, which puts it right up against budget-friendly smartphones from competitors such as Samsung and Xiaomi.

Production is underway, and the report suggests Apple will introduce it this spring. It'd be wise for Apple to announce a low-cost iPhone model with modern specifications. Just look at the iPhone XR and its title as the best-selling smartphone through Q3 2019. Consumers don't always want to spend around $1,000, and cheaper alternatives are attractive right now.

Ming-Chi Kuo, an analyst with strong insight on Apple's operations, shared some details about the rumored product back in October and stated Apple would attach a $399 price tag, too. Storage capacities should be 64GB and 128GB, and grey, silver, and red colors are expected as well. So there's some choice for consumers looking to purchase an iPhone that's not as pricey as the iPhone 11 and 11 Pro.

As for the name of this iPhone model, it could go in three directions. 'iPhone 9' appeared in recent rumors, but some analysts still think Apple will introduce the 'iPhone SE 2' to tap into the identity of the original model from 2016. Of course, the Cupertino-based company could choose neither of them and pick an entirely new name.

Specifications will get watered-down in an effort to achieve affordability. Apple sells the iPhone 8 for $449, but the low-cost iPhone should replace it with a similar design and go even cheaper. Yet there will be some key features that remain. The low-cost iPhone should ship with an A13 chipset, a single-lens camera, and a physical Home button storing the fingerprint scanner. Above all else, this iPhone model wants to perfect essential functions such as multitasking and basic photography.

Expect the low-cost iPhone to debut sometime in March. Product lines such as the iPad and the MacBook could also participate in this launch, but it wouldn't be surprising if Apple limited the spotlight to the affordable smartphone. Several hardware manufacturers release budget-friendly smartphones during spring and summer months that dominant around the world, and Apple's low-cost iPhone could compete with them head-on. Perhaps it'll serve as a larger play to succeed in emerging markets where inexpensive Android devices are most popular.

Further Reading

• Report: Apple Designing In-House 5G iPhone Antenna Module
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