Is This Apple’s Next Big Avenue for Growth?

large. With Apple being able to broaden its reach through a low-cost iPhone, the company could take as much as 65 percent of the smartphone market it currently does not serve, Piper Jaffray analyst Gene Munster said. Munster was referring to the sub-$400 market. Apple isn’t competing in this market because of the high price of the existing iPhone models.

“We believe that the high-end smartphone market (above $400 off contract) for [calendar year 2013] will be about 320 million units, of which we believe Apple will capture 50 percent market share,” Munster said in a note to investors, according to Apple Insider. “We believe this means Apple is missing the other 65 percent of the market, or 580 million units, given its current product lineup without the lower-priced phone.”

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According to Munster, that growth will be sufficient to ignore the prospect of the reduced margins of a cheaper device…

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