Apple is all set to target customers of lower budget now as Chris Whitmore,who is an analyst at Deutsche Bank predicts that this September Apple will be releasing both iPhone 5 and iPhone 4S.Apple is also going to release iOS 5 to public this fall.

It is being expected that iPhone 4S will cater to lower budget pre-paid market of various developing countries and will be priced at $349 where as iPhone 5 will succeed iPhone 4.

According to Whitmore,

“With Nokia and RIMM struggling,” he writes, “the time is right for Apple to aggressively penetrate the mid range smart-phone market (i.e. $300-500 category) to dramatically expand its [total addressable market] and market share.”

There have been conflicting reports regarding the next generation iPhone lately.Some reports suggested that the next generation iPhone will have radical new case design while other claimed that iPhone 5 will be similar to iPhone 4.It was also rumored that next generation iPhone will be codenamed “Telluride”.

Whitmore suggests that iPhone 4S will be unlocked and priced at $349,will help Apple to penetrate markets of Africa, Asia and Latin America which will cater to 1.5 billion potential customers in 98 countries who mostly opt for prepaid plans.

Earlier Apple COO Tim Cook also said that Apple “understood price is big factor in the prepaid market,” and though the pre-paid market may seem out of Apple’s realm, Cook said that the company was “not ceding any market.”

Further, Katy Huberty of Morgan Stanley reports the new iPhone will be launched in September.

These are all just speculations from various trusted sources.Things will be clear only when Apple will announce the next generation iPhone.

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