"China doesn't need a cheaper iPhone," says Dr. Kai-Fu Lee, CEO of Innovation Works. A cheap iPhone by Apple (NASDAQ:AAPL), he says, would still cost $300. That's twice as much as cheap Android phones that can be bought at $150. For Chinese people who are truly on a budget, $300 simply would not be competitive, Lee reasons.

Lee, however, seems to be an outlier these days. Most analysts are arguing for a cheaper iPhone. In fact, analysts Gene Munster and Brian White both think that Apple is already planning to launch one this year.

In the video below, Fool contributor Daniel Sparks explains why speculation surrounding a cheaper iPhone isn't telling investors much. Who knows what Apple will launch this year?

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.