If Apple Inc.(NASDAQ:AAPL) plans on maintaining its market share, it needs to do something about the fresh new challenge its iPhone business is about to come across.
It is being anticipated that the next sign of growth in the smartphone market will come from the emerging markets in which iPhones are costly for customers.
The iPhone maker has to plan on selling a cheaper phone to people, who find iPhones expensive to buy.
Mobile carriers are responsible for subsidizing iPhone sales in the US. However, things are different in the developing markets like India in China. In such nations, consumers need to pay entire cost for their handset. Most of the time, it is not possible for consumers to afford an iPhone.
Analysts strongly believe that Apple will be manufacturing an inexpensive iPhone so as to make a mark in such markets.
Analyst Toni Sacconaghi was told by Tim Cook, back when he used to be the COO of Apple, that he wants Apple not to be just for the rich consumers but for everyone. It seems that he was indicating at an inexpensive iPhone.
The iPhone 4 may be cheaper than the iPhone 5, but it is definitely not cheap enough to help Apple in being successful in the developing markets.
Peter Misek, an analyst at the Jefferies has created a new memo and said that there seems to be a good chance of Apple launching an inexpensive iPhone in June, 2013. The phone will be marketed at the developing and prepaid markets, particularly in Asia.
Misek also said that he thinks an economical version of iPhone will come with apps processor and scaled-down modem. Foxconn International Holdings has a supply chain for faculty ranging between 200 and 200k units each day.