According to Morgan Stanley analyst Katy Huberty, Apple may release a $330 “iPhone mini” this summer to boost sales in China. Apple’s low-cost device is expected to provide it with an additional 20% of the smartphone market, which will be added to the 10% it already has with the iPhone 5 alone. According to the analyst, smartphone prices have begun to stabilize in China, so it would be the best time for Apple to release it.
However, Huberty believes a deal with China Mobile is key to Apple's success. The iPhone is already sold through China Unicom and China Telecom, but it has yet to sign a deal with China Mobile, the world's largest carrier with 800 million subscribers. And with its subscribers in mind, a deal would mean a huge boost to iPhone profits.
“We believe Apple will launch the iPhone mini at $330 to compete with products in China from Lenovo, Huawei, ZTE and Coolpad,” Huberty said in a note to investors.
According to Huberty, the $330 will be for the unlocked iPhone mini, which means it will be even cheaper on contract. It is also expected to expand to other emerging markets outside of China, but it is not yet clear whether it will be available in the US and Europe, where Apple has enjoyed huge success with its existing iPhone.
Rumors of a cheaper iPhone began last January by The Wall Street Journal and Bloomberg, and analysts have been talking about it constantly since then, but no one yet knows what Apple intends to do.
Dimitrios Georgoulas @ GreekAppleNews
