Morgan Stanley analyst Katy Huberty suggests Apple could launch the iPhone Mini in summer to increase the company's sales in China. The iPhone Mini will reportedly have a $330 price that will aid the technology giant to further improve its current market share.
"A low cost iPhone with some basic features could literally triple the market share of the Cupertino Company in China. Having a low priced iPhone Mini in its inventory will enable Apple to add another 20% to its 10% share which it has today. However the key to this venture is an agreement with China Mobile," the Morgan Stanley analyst stated.
The technology giant has been targeting a deal with the China's largest carrier, China Mobile, with more than 800 million subscribers. Apple is currently selling the iPhone smart phones through the carriers China Unicom and China Telecom. With the smart phone prices becoming more stable in China, it would be a perfect time for Apple to launch the iPhone Mini with a China Mobile deal.
Analyst Katy Huberty stated: "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% 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."
With the price tag of $330, the iPhone Mini will aid Apple in getting hold of a bigger share in the Chinese market as well as competing against rival company Samsung that has a better grip in the South and South East Asian countries.
It is still uncertain if the Apple iPhone Mini will be available in the Europe and United States market where the existing iPhone became a success for the company.
Apple and China Mobile have been in an on- and off- negotiation since 2009 yet the two big companies have not agreed to a deal.