A senior analyst has recently claimed that Apple might bring out a cheaper iPhone specifically for emerging markets like China and India.
Gene Munster, a senior research analyst at investment and asset management company Piper Jaffray, said that Apple's cheaper iPhone would be priced around $200 (unsubsidized), Business Insider reported.
He further elaborated that emerging markets cannot match the business models followed by the US and other developed countries.
US network carriers such as Verizon Wireless, AT&T and Sprint offer subsidized iPhones which are priced close to $600. The carriers sell the phones for $200 with contract for a specific time period which also includes data plans for internet usage.
This business model can't be replicated in developing countries like India and China. Currently in India, Apple is selling its iPhone 5 for ₹45, 500(16GB), ₹52, 500 for 32GB and ₹59, 500 for 64GB.
The Cupertino firm has a very low market share compared to Nokia, Samsung in the Indian smartphone market. Its low market share can be directly attributed to the high prices of iPhones.
Nokia and Samsung have a major share of phone market as they have several phone variants to meet the budgets needs of people in India.
Munster mentioned that Apple's unsubsidized cheaper iPhones, which are priced at around ₹ 11,000, might hit India and China by 2014.
Apple needs a major decision from Apple CEO Tim Cook for this to become a reality.
Known for its quality products, the company sells its premium products at higher prices. If Apple becomes successful in bringing a quality product at an affordable price, it may finally have a leading edge over rivals in emerging markets.