Reports suggest that Apple will introduce a cheaper plastic-bodied iPhone 5C on September 10. The 4-inch phone will supposedly replace the iPhone 4 and the iPhone 4S in the product lineup. While the company will certainly gain market share in the lower-end spectrum of the smartphone market in the U.S., it’s just a side effect. The new model is the perfect iPhone for the rest of the world. In many countries, carriers are switching to unsubsidized, SIM-only plans and the iPhone is too expensive for regular people.
U.S. carriers are the exception, not the rule. AT&T, Verizon and Sprint won’t bill you less if you bring your own phone. It used to be the same for Canada but is slowly changing. But in Europe, you can choose between a standard subsidized plan and a much cheaper SIM-only plan. For example, in France, you get unlimited talk, text and data (with a speed reduction after 3GB) for $25 per month (€19.90). The only downside is that you have to pay full price for your phone.