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.

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