According to analyst Apple could launch a cheaper iPhone to make some extra room in price sensitive Cell Phone Market.
Huberty wrote in a note to investors:
“We believe Apple could launch iPhone Mini at $330 (about Rmb 2,000), in-line with flagship products in China from Lenovo, Huawei, ZTE, and Coolpad. Even in a scenario of low 40 percent gross margin and 1/3 iPhone cannibalization rate (flattening legacy iPhone shipment growth), which we view as conservative, the iPhone Mini adds incremental revenue and gross profit dollars.”
During last quarter’s earning call, Apple’s CEO Tim Cook had this to say when he was asked about the cheaper iPhone:
The most important thing to Apple is to make the best products in the world. We aren’t interested in revenue for revenue’s sake. We could put the Apple brand on a lot of things and sell a lot more stuff. We only want to make the best products. We’ve been able to build market share and have a great track record with iPod of doing different products at different price points. I wouldn’t view those as mutually exclusive as some might. We’re focused on making great products that enrich lives.