Of course, in an Apple context, "low cost" is a matter of perspective. Some speculate the "low cost" device will cost less than $400 (the issue is how much less), and will be targeted at the prepaid smart phone market, and China and India, for example.
Some believe Apple could set a non-subsidized lower cost iPhone price at about $329.
Investors will worry about profit margin, but that might not be as big an issue as feared. The big issue is whether such a move would crimp Nokia's efforts in the affordable device market, Microsoft's attempt to gain more share, or Samsung's strategy for lower end devices.
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