Let’s leave aside iPhone 5 rumours just for a moment. All Things Digital reports that an iPhone Mini shouldn’t be viewed as an impossibility, as financial analysis firm Oppenheimer predicts that it’s just a matter of time before Apple releases a smaller phone, obviously much cheaper, in order to gain an even bigger market share and squeeze its rivals even more.
There are already rumours that Apple has been negotiating with components suppliers to cheapen the price and make some changes to the production cycle. A $50 cut in iPhone’s price could turn out to be a real deal for Apple. Or they could launch a mini-iPhone and target another type of consumer.
Obviously, if Apple wants to increase the market share of the iPhone, they have to come up with lower-entry handsets, that could be used in the prepaid market.
Ittai Kidron, Oppenheimer’s analyst, states:
“We strongly believe that a lower cost mini-iPhone will eventually materialize, as it would allow Apple and carriers to ease back on the device and service pricing and extend Apple’s reach into new and lower consumer segments with only minimal cannibalization to the iPhone’s high-end position,” he writes. “Clearly, there is a large untapped market available to Apple once it lowers price, and it makes sense to approach these markets in the same way that the iPod found its way to lower price tiers.”