The US Tech Press and readers just don't get the point of the "low cost" iPhone

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Several sites are reporting the above table from JP Morgan and saying that the "cheap" iPhone will be at the $350 level rather than really cheap.

But they are missing the point - the US Dollar price is irrelevant . It is not a phone for the US market. Apple are already dominating the US market.

It is a phone for developing markets like China, India and Brasil. But it is also for Europe where the recession has pushed people away from high end phones to low end stuff.

To se where it needs to be pitched, you need to look at local prices. For here in Europe, I think they need to be around the 250 Euro point (vs 399 for iPh4, 579, 679 for $s and 5)

Residents of China, India, Brasil - where do you think they need to be in relation to the other devices?

The other point being talked about is there being limited production of these devices. To me this points to a one carrier or one country launch. The most obvious would be China Mobile who have an LTE network launching soon but the other is Brasil where they have the ability to manufacture in country and hence avoid the enormous import taxes there.