» Not cheap, just cheaper

JP Morgan’s Gokul Hariharan and Mark Moskowitz as quoted by 9to5Mac:

Currently Samsung dominates this segment ($200-500 price range) with 35+ percent market share. … We believe Apple could take 20-25 percent of this market in the next 12 months (from almost no market share currently), if it prices a lower-priced product at $350-400 levels.

I certainly don’t see why Apple would suddenly jump down to the low-margin end of the market. The iPad mini provides an example of why they wouldn’t, shouldn’t and don’t have to. If they do ship a cheaper iPhone, I look forward to being told how they blew it, either by pricing it too low or too high.