Apple will launch a cheap, unsubsidised iPhone in 2014 as it seeks to conquer the Chinese market, according to one analyst.
Gene Munster reckons that the company would be wise to launch a $200 (UK£125, AUD$191) iPhone handset due to the unwillingness of mobile operators in the far east to subsidise the current models.
Networks around the world take a heavy hit each time a subscriber picks the iPhone in the hope of making the money back over a two-year contract.
It doesn't work that way in China, meaning that anyone who wants an iPhone needs to buy it outright.
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Halting Android's dominance
Business Insider, reporting the note from Munster, said it would be wise for Apple to create a new version of the iPhone for this market, rather than heavily discounting the previous models.
Munster asserts that a cheaper iPhone would allow Apple to grow its pitiful market share in China, where Android currently dominates.
However, it would take a major change in philosophy at Cupertino for Apple to consider launching a cheap handset.
Via Business Insider