Rumors say that Apple is planning to put cheaper Qualcomm Snapdragon processor into a low-end iPhone model. It’d make sense for the company to differentiate its cheaper smartphone version with the more expensive premium models.
Additionally, Qualcomm’s chip might help Apple to maintain a good margin level. There will certainly be some money saved as some Qualcomm chips have integrated WiFi, Bluetooth and modem. When designing a budget smartphone model, every cent saved when procuring components will easily add up on the bottom line.
If the rumor is true, this would be a big win for Qualcomm as its current involvement in Apple’s device is limited only to modem solution. For years, there have been rumors on possible Apple’s low-end device, which would appeal consumers in emerging markets. However, lack of growth in premium market has encouraged Apple to try their luck in the entry-level market segment.