Is China getting the iPhone Mini this summer?
The rumored bargain phone would be a great boost to Apple in China, and could boost the company's market share in the country.
Morgan Stanley analyst Katy Huberty claims the iPhone Mini could give the company the edge it's looking for in Chinese markets, reports CNET. Huberty said that the bargain iPhone could increase Apple's market share by 20 percent, tripling its current 10 percent share.
"We believe Apple could launch iPhone Mini at $330, in line with flagship products in China from Lenovo, Huawei, ZTE and Coolpad," Huberty said in an investor's note. "Even in a scenario of low 40 percent gross margin and one-third iPhone cannibalization rate (flattening legacy iPhone shipment growth), which we view as conservative, the iPhone Mini adds incremental revenue and gross profit dollars." The report also predicts that Chinese consumers may see the phone by the summer.
A big hurdle to Apple's increased push into China lies with the cell carriers. The company currently goes through China Unicom and China Telecom to sell its phones to Chinese consumers, but is looking for a deal with China Mobile, the biggest provider. A deal with China Mobile grants Apple access to 700 million potential Chinese customers. But China Mobile's TD-SCDMA network currently doesn't support iPhone 4S or iPhone 5. This and business disagreements have kept the iPhone from China Mobile customers, keeping the smartphone at number six in Chinese sales.
While the iPhone Mini has not been officially released, rumors suggest that it will be made of plastic and appeal to prepaid consumers. Some point to a later release date than the summer. Strategy Analytics analyst Neil Mawston told CNET in January that China will probably have to wait past the summer. "The iPhone 5 is growing fast and profitably right now, so there is limited incentive for Apple to launch a profit-squeezing 'iPhone Mini' this year. We expect the 'iPhone Mini' to be more likely next year, in 2014, when Apple's penetration of the global postpaid smartphone market will be nearing saturation and Apple will be forced to discover fresh growth streams elsewhere."
