Gene Munster Apple: When it comes to Apple Inc. (NASDAQ:AAPL), Gene Munster knows a thing or two about what the company is thinking. In the past, this Piper Jaffray analyst has been known to provide as much information as possible on new devices and other related news.
For example, check out this piece we wrote a couple months back: Gene Munster Discussing the Possibility of a Low-Cost Apple Inc. (AAPL) iPhone
As you can see, a cheaper Apple Inc. (NASDAQ:AAPL) iPhone is something Munster has been talking about for quite some time.
Recently, Munster has once again shared some thoughts on what the future could hold for the Cupertino-based company should it bring a cheaper smartphone to the market.
AppleInsider.com has the scoop in this article: More affordable iPhone predicted to grab Apple 11% share of low-end market in 2014
The article goes on to talk about a cheaper iPhone, as well as Munster’s thoughts on what this could mean to both Apple Inc. as well as the smartphone market as a whole.
He feels that a “new $300 contract-free iPhone model could easily capture more than 10 percent of the low-end smartphone market in its first year alone.”
As you can imagine, this would be a huge boost for Apple as it would allow the company to compete at the low end of the market. With a solid performance at the high end of the smartphone market (currently owning roughly 42 percent), it would give Apple more stability from top to bottom.
While Apple Inc. (NASDAQ:AAPL) has remained quiet regarding its plans or a cheaper iPhone, most analysts agree that this is going to be launched at some point during 2013 as a means of addressing the low end market where the company does not currently compete.
Munster also talks about a worst case scenario in which “a low-end iPhone would cannibalize about 30 percent of existing iPhone sales.”
If this were to happen, he believes that gross margins would drop to 36.6 percent in calendar year 2014 from 38.6 percent in the most recent quarter.
As of now, it is hard to say what is going to happen with a low cost Apple Inc. (NASDAQ:AAPL) iPhone. There are a lot of rumors out there, including those from analysts, but the company is not talking. Only time will tell if Apple Inc. takes a stab at this market.
Check back here for more updates on Gene Munster Apple.
DISCLOSURE: I have no positions in any stock mentioned.
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