Analyst Gene Munster with Piper Jaffray predicts that Apple will drop down the price of the off-contract iPhone 3GS to two hundred American dollars by September next year. This would be 175 dollars less than the price of the current unsubsidized 3rd generation eight gigabyte iPhone, a considerable drop for those interested in the 3GS of contract. Gene Munster says that this move would be “important” for the company, as Apple currently has the smallest market share percentage in emerging markets where the company competes with cheaper Android devices.
Munster goes far enough to say that with the launch of a cheaper contract-free handset, the company could see its global market share go from 20 percent in 2012 to 32 percent in 2015. He also states that if Apple began offering a $200 iPhone in September 2013, the device would count for as much as a quarter of total iPhone sales. This would eventually result in a decline of the iPhone’s average selling price, bringing it to $434 by the end of 2015, much lower than its current average of $641.
This rumor backs up a previous statement by analyst Peter Misek who said the he was told that Apple had linked an agreement with ”a leading distribution and logistics company” to push the 3GS in prepaid markets around the world. He believes that Apple plans to keep the 3GS in production to sell off-contract in developing markets for under 300 dollars.
Also take note that Apple would most likely not use the 3GS for the under 200 dollar model past 2013, and the role would instead be filled by the iPhone 4, which was released in the summer of 2010.
I think this could be a great plan for Apple to expand its global market share in the mobile industry, and will help them keep racking in the dough. What do you guys thing? Would this plan sink or float? Let us know in the comments.