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£130/$199 iPhone coming this September will win $135b emerging market, analyst

Karen Haslam | Feb. 21, 2013
Munster is convinced that Apple will launch a low-cost iPhone priced at around $199 (£130 ex VAT) in the September quarter

"Apple is aggressively looking at the Asia-Pacific market with strong focus on China and India," Yadav said.

"We have seen overwhelming demand for Apple iPhone in India, not just for the latest iPhone 5, but also the lower cost previous versions," IDC analyst Ryan Keith told AllThingsD. "It's a huge market with great opportunity for Apple."

Why not sell the cheaper iPhone 4?

Munster also dismissed the idea that the iPhone 4 (currently Apple's entry-level iPhone) could be a cheap enough offering for those markets. He said that the iPhone 4 is still 133 percent more expensive than the global average for a low-end smartphone, according to the Apple Insider report.

What is the average price of a smartphone in emerging markets?

According to Munster's data, the average price of a low-cost handset in China and India is $138 (around £90). The iPhone 4 is 265% more expensive than those handsets, he claims.

This low-cost sector of the market, estimated to be worth $135 billion, will account for 60% of smartphones this year, according to Munster. That's 540 million units at an average price of $250 (£165) each.

Huberty notes that research suggests that the average selling price of smartphones in China stablized last year and has actually started to increase as Chinese users trade up to higher-quality smartphones, notes Fortune.

 

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