Analysis: Apple must push cheap iPhone4 for emerging markets

Informed sources recently revealed that Apple Corp. and Nokia and other competitors to seize emerging markets, ready to launch 8GB version of the cheap iPhone4 mobile phone. Industry analysts believe that in the current situation, this is something Apple must do. Even at the expense of profit margins, Apple has to promote the cheap iPhone4 because it is "indispensable."

Channing Smith, general manager of the US investment agency Capital Advisors Growth Fund, said: “The iPhone 4 is an indispensable part of the iPhone 4's life cycle. It is especially true for low-income people in emerging markets. "Coincidentally, some analysts believe that Apple has always insisted on the high-end line, but in order to maintain continued growth, it only hopes for emerging markets.

Pat Becker, fund manager of Becker Capital Management, said that in fact Apple has actively attacked the low-end market controlled by Nokia. What worries Apple even more is that Microsoft may launch a Windows Phone-related cheap version of the system. In order to resolve this risk, Apple must appropriately lower its profile and launch a cheap iPhone4.

Even if there is a profit margin, Apple will be unambiguous. Becker said: "The cheap iPhone may erode Apple's high-end iPhone smartphone market and even affect profit margins, but Apple needs such a cheap version to expand its share of emerging markets."

However, some analysts believe that even if Apple really launched a cheap iPhone4, then the price of the 8GB version will also exceed 200 US dollars, which is still limited to the appeal of emerging markets, so a lower price should be considered.

There is currently news that the 8GB iPhone4 is produced by a Korean company and will be released with the iPhone5. South Korea’s Samsung is also a supplier of Apple’s flash memory, but Apple and Samsung have refused to comment on the cheap version of the iPhone4.