Cheap iPhone could reach half a billion potential customers, says analyst

Uncategorized | Saturday January 5 2013 2:27 AM | Comments (0) Tags: , , , , , , , , ,

Cheap iPhone could reach half a billion potential customers, says analyst

How many customers would a cheap iPhone grab?

(Credit: CNET)

A cheaper iPhone could tap into a world of potential sales of 580 million units, according to Piper Jaffray analyst Gene Munster.

Rumors have been flying lately that Apple will introduce a low-cost iPhone to reach out to developing markets and offer more competition to Android. Assuming the rumors even prove true, Munster feels such a phone would provide a huge boost to Apple ‘s market share.

“We believe that the high-end smartphone market (above $400 USD off contract) for [calendar year 2013] will be about 320 million units, of which we believe Apple will capture 50 percent market share,” Munster said in an investors note out today. “We believe this means Apple is missing the other 65 percent of the market, or 580 million units, given its current product lineup without the lower priced phone.”

As a result, the analyst thinks Apple will unveil a low-cost iPhone this year to address that missing 65 percent not served by its current iPhone lineup, representing 580 million potential units.

A cheap iPhone will hurt gross margins over the next few years, but the overall impact is likely to be less than 1 percent, Munster said. Even with the effect on margins, the analyst sees this as a prime opportunity for Apple . A lower-price iPhone will help Apple reach sales growth of 22 percent this year and 23 percent next year…. [Read more]

Cheap iPhone could reach half a billion potential customers, says analyst

Cheap iPhone could reach half a billion potential customers, says analyst

Cheap iPhone could reach half a billion potential customers, says analyst

Cheap iPhone could reach half a billion potential customers, says analyst

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