The so-called "cheap iPhone" - a more affordable entry-level iPhone from Apple supposedly coming to market this year - could be a big player in the emerging low-end smartphone market. That's according to a new report from Piper Jaffray analyst Gene Munster.
Munster believes that Apple - in a worst case scenario - will secure at least 10% of the low-end smartphone market by introducing a low-end iPhone, which is largely defined as an iPhone available for $300, well below the average selling price of $620.
Munster estimates "gross margin goes to 36.6% in CY14 vs. 38.6% in Dec-12. This assumes a $300 ASP, and a 30% gross margin for the cheaper iPhone vs. $620 ASP and a 55% gross margin for the high end iPhone."
Munster added today that Apple's March earnings (scheduled to be announced next Tuesday) could be weaker than expected. Same goes for the anticipated guidance for June.
Source: Business Insider