Cheap iPhone Will Kill The iPhone Sales: Analyst


He wrote, "In our model, the iPhone M is dilutive not only to gross margin but to gross profit dollars. The impact of the M depends on assumptions. We estimate the 4/4S, which the M would replace, currently have a gross margin of 55 percent because of the low cost of older components. We also assume the gross margin of the M will be near 32 percent," as reported in Times Of India.

The Smartphone is being called as iPhone Mini, iPhone M, iPhone Lite and most recently iPhone 5C. According to rumor mill, the device will have a plastic body, 4-inch screen. It will be made available in various colors. The device is supposed to run on the upcoming iOS 7 platform, have a 8 MP primary camera with 16 and 32 GB internal memory options. Due to its cheaper price, iPhone Mini will be aimed specifically at the emerging markets like India, China.

According to Piper Jaffray analyst Gene Munster the handset will be launched during U.S. holiday season and it will sell 12 million units by year-end.

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