With the declining smartphone market believed to be a current trend in Chinese markets, opposing reports claim that the process are actually stabilizing in the region. This is a window of opportunity for global companies like Apple to target a new demographic of users.
According to market statistics from analyst Katy Huberty, the iPhone Mini, if launched at $330 by Apple, the company iPhone business would get a boost of nearly $2.4 billion in gross profit, even though the gross profit margin would decline.
The reports claim that if the iPhone Mini was launched in-line with flagship products in China from Lenovo, Huawei, ZTE and Coolpad at $330, then even in a scenario of low 40% gross margin and 1/3 iPhone cannibalization rate. The iPhone Mini is supposed to add incremental revenue and gross profit dollars.
Huberty also said that the debut of a cheaper iPhone mini, next-generation TD-LTE licenses, the passage of cell phone number portability legislation and the willingness on the part of China Mobile to subsidize high-end devices after a TD-LTE launch would help to catalyse the iPhone business in China.
