If you missed a rumor about the terminal iPhone Mini, then today I have for you exactly what you are waiting for, because Topeka Capital analysts bring back to the discussion the possible launch of a cheap iPhone in June. The terminal would have a price of $250 - $300, competitive for almost any market on the globe, and June seems like the right month in which it could reach the market. iPhone Mini or iPhone Air could be the names chosen by Apple for the device, and this because the product would be lighter than the current models, but also because it would be produced using plastic material.
In late December, our research uncovered iPhones in different screen sizes for potential launch in May/June, allowing Apple to better bifurcate the market and pave the way for a lower-priced iPhone. We believe a $250 to $300 price point for a lower-priced iPhone would make sense and 58% below the $649 price point for an unlocked 16GB iPhone 5. A $250-$300 price range would also be competitive with China-based Xiaomi that offers a high-end phone experience at a mid-range price of ~$320 in Chinas.
For Apple, the launch of a cheap terminal would also mean a reduction in the profit generated by its sale, but by selling more devices, the company could generate significant revenues, even at a low price. Basically, Apple must have the ability to produce many cheap iPhones before launching such a device on the market, and for now it has problems producing enough units of the old models, at least this is the case with the launch of a new model.
For example, we estimate that Apple was unable to address at least 60% of the smartphone market in 2012 (not to mention the feature phone market) due to the high price point of the iPhone, while we believe a high percentage of the annual smartphone unit growth of 688 million between 2012 and 2016 units (ie, from 717.5 million to 1.4 billion) as estimated by IDC, will be outside of the high end market. The case would be an interesting area of cost savings with a lower priced material (eg, plastic) versus the aluminum unibody casing on the iPhone 5, while adding colors to excite consumers.
It would not be excluded that Apple will launch a cheap iPhone in the summer together with the iPhone 5S, but for now we only have rumors and nothing 100% certain.
