A $330 iPhone would help Apple conquer the Chinese market

[RaduTyrsina]

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Even if the low-cost iPhone rumors have been toning down lately, this week they scheduled to make a comeback. In a statement issued recently, American brokerage firm Morgan Stanley, claimed that Apple needs a cheaper version smartphone in order to properly succeed on the Chinese market.

Stanley places the prices of this future device at $330 and analyst Katy Hurberty makes a point in saying that prices across the country have been stabilizing, making it an ideal time for Cupertino to start price axing in order to gain some market share and make more money.

“Stabilization in China smartphone pricing and growth in China's Mobile's 3G smartphone share ripen the market for a lower-priced iPhone.”

The largest carrier in China – China Mobile has never sold the iPhone up to this date. Nevertheless, the analysts predict that Apple can strike a deal for, as they call it, the iPhone mini with China Mobile’s TD-SCDMA network. Thus, Cupertino could add another 20% Chinese subscriptions on the 10% it already has thanks to the iPhone 5.

The trouble with China Mobile is the 3G connectivity; nevertheless 15 million unlocked units running on 2G are present in the country currently. However, those numbers don’t make the company very happy. Huberty feels that if Apple manages to price an iPhone at $330, the tech giant will finally be able to compete against Chinese well known companies such as ZTE, Huawei, Lenovo or Coolpad.

Source: MarketWatch