iPhone 5S And Plastic iPhone With No Retina Display To Launch This Summer?

Rumors have surfaced that Apple will launch the iPhone 5S along with a more affordable iPhone device this summer.

The report comes from Amit Daryanani of RBC Capital Markets, who claims to have heard word from Apple that the company plans to release "multiple new phones" between June and July.

"The low-end iPhone will have the same 4-inch form factor as the iPhone5, but will have a plastic casing and no Retina display," he said. "With a lower price point, AAPL will be able to target a growing and important part of the smartphone market (sub-$400 price band)."

Though Daryanani believes that the supposed low-end iPhone will generate lower gross margins than the iPhone 5 or iPhone 5S, he also feels that the device would add an additional $22 billion in revenue and over $5 in earnings per share in 2014. He believes this will add $50 in stock value to Apple's stock price.

He also projects that the low-end smartphone market will have a total size of about 500 million units in 2014. He thinks that Apple has the potential to acquire over 15 percent of that market in the medium term, which accounts for a "conservative" estimate of roughly 70 million devices.

Some disagree over whether the lower-priced smartphone will come with a retina display. Jeremy Horwitz of iLounge stated in January that "reliable sources" had revealed the device's design to him. He claimed it will come with a retina display along with Apple's new Lightning connector.

"One of our sources claims that Apple's iPhone prices remain too high for most mainland Chinese customers - the iPhone 5 hardware alone starts at $849 there, versus the iPhone 4 at $500, in a country where the average annual salary is around $3,000 per person," he wrote. "The source has said that mainland Chinese iPhone 5 sales are already tapering off as a result of the pricing, which is higher than in Hong Kong. A budget iPhone model would help sales in populous but underdeveloped countries to grow."

Daryanani predicts that Apple will release a new iPad mini and full-size iPad later this year. He said that an Apple television and "iWatch" smartwatch are "likely," but was unable to provide an exact time when they might be released.

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