A Cheaper iPhone in China Won't Help Apple

"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?

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


Read/Post Comments (4) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On April 29, 2013, at 9:06 PM, Jjkiam wrote:

    It's so simple that I can't believe this analyst disregards Apple's history of releasing different models at various price points for almost all their products . They don't make "cheap". They make various models with various features and a lower priced introductory Iphone will be no exception. Also this is about creating a phone that specifically appeals to the majority of CM's customers for the deal that should be shortly announced. When this deal is concluded the stock will see a HUGE jump or not if no deal ever materializes but who really believes that ?

  • Report this Comment On April 29, 2013, at 10:11 PM, dwilh51183 wrote:

    a cheaper phone will help apple, you tool !

  • Report this Comment On April 30, 2013, at 1:29 PM, phone2use wrote:

    <a href="http://phone2use.com/index.php/what-if-apple-launch-a-cheap-... will Chinese people do if Apple launch a cheap iPhone</a>

    I totally agree to the point, but I partly disagree those reasons in the article.

    If a cheaper iPhone really just cost $300, Chinese people will firmly choose to buy iPhone though it's twice as much as cheap Android phones.

  • Report this Comment On April 30, 2013, at 1:35 PM, phone2use wrote:

    I totally agree to the point, but I partly disagree those reasons in the article.

    If a cheaper iPhone really just cost $300, Chinese people will firmly choose to buy iPhone though it’s twice as much as cheap Android phones.

    Why? Something you possibly don’t know, The consumption concept. As a Chinese, I know why some Chinese are so crazy about iPhone. Using an iPhone, they will think they would be more respected, because iPhone represent the best, not everyone can own it.

    http://phone2use.com

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