According to analyst Katy Huberty of Morgan Stanley, Apple may have released the thirty-three-dollar "iPhone mini" this summer to increase its sales in China. The cheap Apple device is expected to provide it with an extra 20% of the smartphone market, which will be added to the already 10% it has acquired with iPhone 5 only. According to the analyst, smartphone prices have started to stabilize in China for this and it would be the best time for Apple to release it.
However, Huberty believes an agreement with China Mobile is the key to success for Apple. The iPhone is already being sold via China Unicom and China Telecom, but they have not yet reached an agreement with China Mobile, the world's largest provider of 800 million subscribers. And keeping in mind its subscribers, the deal would mean a tremendous increase in the profits made by the iPhone.
"We believe that Apple will release the iPhone mini at 330 dollars to compete for products in China from Lenovo, Huawei, ZTE and Coolpad," Huberty said in a note to the investors.
According to Huberty, 330 dollars will be for the unlocked iPhone mini, which means that with a contract it will be even cheaper. It is also expected to expand to other emerging markets outside China, but it is not yet clear whether it will be available in America and Europe, where Apple enjoys tremendous success with the existing iPhone.
Rumors of a cheaper iPhone were launched last January by The Wall Street Journal and Bloomberg, since then analysts are constantly talking about it, but no one yet knows what Apple intends to do.
Dimitrios Georgoulas @ GreekAppleNews