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Apple Might Not Ditch the iPhone 5 After All

by Brandon Russell | July 29, 2013July 29, 2013 4:00 pm PST

iphone-5-back

Apple might not abandon the iPhone 5 after all. Despite previous reports suggesting Apple could ditch its best-selling handset in favor of the iPhone 5C and iPhone 5S combo, a group of Goldman Sachs analysts believe that definitely will not happen. And one of their reasons behind that is because the move would be very un-Apple-like. Just like an iPad mini, or larger screened iPhone 5 were originally pegged as too “unlike Apple” to be true.

First reported by ETNews, the rumor claimed Apple would drop the iPhone 5 due to touchscreen technology used in the device, which apparently isn’t suitable to produce in low volumes. Instead, Apple would sell off its remaining iPhone 5 models, and focus on its two new models aimed at two very separate crowds. Goldman Sachs said in a note this won’t happen because it’ll be too sharp of a departure from Apple’s previous—and very successful—strategy of offering older models at a cheaper price.

Goldman Sachs cites positive iPhone sales this past quarter as an indication Apple won’t ditch the iPhone 5 later this year, saying Apple doesn’t have anything to gain because of the company’s aggressive margin structure. Apple’s iPhone 5C, which is speculated to be in the $350-$400 range, could mitigate the absence of older iPhone models, though that’s all just conjecture at this point.

You can certainly argue both sides—we’ve seen Apple deviate from its own path before. The company can be a little unpredictable at times, so we’ll just have to wait and see come this fall what the company plans to do. Will the iPhone 5 become a collector’s item? Remember what happened to the iPad 3?

ValueWalk

Brandon Russell

Brandon Russell likes to rollerblade while listening to ACDC.

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