Apple iPhone 5S price reduction to $225 likely, says analyst

The Apple iPhone 5S from 2013 is expected to be available with a 50 percent discount over its launch price in this month. This discount will reduce the iPhone 5S to $225 (AU$315).

According to Mac Rumors, KGI Securities analyst Ming-Chi Kuo believes the iPhone 5S price will be reduced to $225 (AU$315) after the announcement of the Apple iPhone SE (Special Edition). The Cupertino company is heavily rumoured to launch a 4-inch iPhone SE smartphone on March 21.

The Apple iPhone SE price is expected to be around $400 (AU$560) to $500 (AU$700) from March 25. By selling the new iPhone SE smartphone as well as the iPhone 5S with reduced price, Apple aims to draw more buyers towards its 4-inch iPhone segment. Apple’s current flagship phone model, the iPhone 6S, will continue to sell for $649 (AU$909) and $849 (AU$1190) for its lowest and highest configuration variants, respectively.

Since the iPhone 5S will be available with a lower price tag, analysts are saying that customers will prefer the $225 (AU$315) iPhone 5S than the iPhone SE. Hence, the Cupertino firm is expected to ship 25 million units and 12 million units of the iPhone 5S and iPhone SE, respectively, this year. Apple reportedly targets to ship 37 million units of 4-inch smartphones in 2016.

The iPhone 5S specs include a 4-inch Retina screen, Apple A7 chipset and M7 motion co-processor. The SoC is accompanied by 1 GB of RAM. It has an 8 MP rear camera and a frontal shooter of 1.2 MP. It supports Apple Pay through its Touch ID fingerprint sensor, Lastly, it is equipped with a 1560 mAh battery.

Apple is not only expected to announce the iPhone SE but also a 9.7-inch iPad Pro on March 21. The company is speculated to be preparing for an unveil event that will be orgainsed at Town Hall Center in California.