Analyst More Confident in Low-Cost iPhone After Meeting With Apple CFO

Analyst More Confident in Low-Cost iPhone After Meeting With Apple CFO

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Morgan Stanley analyst Katy Huberty is more confident Apple will release a lower priced iPhone after meeting with CFO Peter Oppenheimer, reports BusinessInsider.

Huberty wrote:

We also see several signs that a lower priced iPhone makes sense: 1) iPad Mini is expanding Apple’s customer base with 50% of purchases in China/Brazil representing new customers to the ecosystem. 2) Chinese consumers show a desire to purchase the latest version of iPhone (instead of discounted older generations). 3) iPhone 4 demand surprised to the upside in the December quarter. Even at a low 40% gross margin and 1/3 cannibalization rate, we see an “iPhone Mini” as incremental to revenue and gross profit dollars.

Notably, Topeka Capital analyst Brian White recently said he is "now confident that a lower-priced iPhone will be launched by Apple in 2013, possibly as early as June."

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Analyst More Confident in Low-Cost iPhone After Meeting With Apple CFO
Max - February 22, 2013 at 6:24pm
They should have low cost iPhone and regular cost iPhone [ not that regular cost iPhone they cant sell to low cost because it only cost 250 to make them ] to market with lots of size and coolers if they want to dominant market around world! like small size iPhone then 4 inch then 4.5 and 5+ inch that will take down galaxy S series and Note series of Samsung and + more company. I bet after that their market share on ios will be over 80%!
Jowell - February 22, 2013 at 5:55pm
Agree! that is one way of dominating the mobile market. and I guess 106 x 55 mm. might be the perfect size of an inexpensive iphone. ;)
DavidG - February 22, 2013 at 5:32pm
I we'll need a microscope to read it if they make it any smaller than the 4 or 4s. I'm sure someone will copy that and bring something out soon. Lol. They can go a little bigger too with the iPhone. Since they're making phones for different markets they might as well have a few different sizes.
justabrake - February 22, 2013 at 5:31pm
Is there really a market worth more $$$$ for a cheaper iphone then a BIGGER one ?
DavidG - February 22, 2013 at 5:34pm
I guess they're aiming at kiddie sized phone. Sucks. They should make one even a little larger than the 5 not just longer. The 4 and 4 s are small enough. Gosh.
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