A recent Piper Jaffray analysis of global unlocked smartphone prices solidifies the firm’s expectation that Apple will be launching a low-cost iPhone later this year. The new handsets purpose will be to compete in the untapped market that is currently estimated to be worth $135 billion in 2013. Gene Munster recently reiterated his stance that Apple is likely to release a more affordable iPhone targeting developing regions like China and India.
According to Gene Munster:
…a lower priced iPhone will be a positive for AAPL shares for two reasons. First despite its lower margin, it should accelerate gross profit growth given the size of the low-end market (we estimate $135B in 2013); second, investors have historically bought into AAPL ahead of major new product releases.
He expects Apple to debut an affordable $199 iPhone in the September quarter and believes the company could sell around 37 million units over the remainder of 2013. This number would jump to around 96 million units for 2014 and 170 million units in 2015.