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Thread: 'Cheap' iPhone Predicted To Do Big Business in Low-End Market

  1. #1
    What's Jailbreak? Michael Essany's Avatar
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    Default 'Cheap' iPhone Predicted To Do Big Business in Low-End Market

    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."
    Although Munster believes high-end iPhone sales will increase by 6% next year, he thinks the cheaper iPhone model, which could be released as soon as this September, will help Apple significantly over the long haul without seriously cannibalizing high-end iPhone sales.

    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

  2. #2
    Any company's earnings before a rumored launch of a refreshed lineup of some product are always less! People wud rather wait for the 5s which is rumored for a june release than spend the same for a 7 month old product. Common sense

  3. #3
    This whole "cheap iPhone" seems kind of pointless. Why not just sell the older model for cheaper like they always do? Maybe this is just an excuse to jack the price of the expensive one? LOL

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