Apple iPhone Mini: What could an Apple iPhone mini do for the Company in China?

Apple iPhone Mini: Are the rumors of a cheaper Apple Inc. (NASDAQ:AAPL) iPhone ever going to end? The answer to this question is simple: not until the Cupertino-based company gives the people what they want. Until then, it is safe to say that this conversation will continue.

With all the rumors floating around, there are many who believe that a budget iPhone, or an iPhone mini, could do wonders for the company’s bottom line in China.

In fact, AppleInsider is reporting that Morgan Stanley analyst Katy Huberty believes that Apple could “add nearly $2.4 billion dollars to its handset business and triple its addressable smartphone market in China by debuting a $330 “iPhone mini.”

According to the same article, Huberty added the following in the report:

“Contrary to a consensus view that the Chinese smartphone market is contracting, prices are actually stabilizing in the region, offering Apple an opportunity to target a new demographic of users. She pointed to historical trends in Apple product launches, noting that the company launched its first sub-$1000 notebook in Oct. 2004, the same year PC price drops recovered from a sharp decline of nearly 10 percent.”

Along with adding a new Apple Inc. (NASDAQ:AAPL) smartphone, don’t forget that the company is currently in discussions with China Mobile, the largest carrier in the country. In fact, it is believed that adding a cheaper iPhone to its lineup may be just what is needed to make this deal happen.

Huberty chimed in again:

“We believe Apple could launch iPhone Mini at $330 (about Rmb2,000), in-line with flagship products in China from Lenovo, Huawei, ZTE and Coolpad. Even in a scenario of low 40% gross margin and 1/3 iPhone cannibalization rate (flattening legacy iPhone shipment growth), which we view as conservative, the iPhone Mini adds incremental revenue and gross profit dollars.”

Do you agree with what Huberty has to say about a new Apple Inc. (NASDAQ:AAPL) iPhone mini? Share your thoughts in the comment section below.

Check back here for more updates on Apple iPhone Mini.

DISCLOSURE: I have no positions in any stock mentioned.

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