iPhone Mini Sales Could Chip Away Sizable Profits – say Analyst

It’s looking likely that the iPhone 6 is set to follow firmly in the footsteps of the iPhone 5 by reaping huge profits for Apple. However, one thing could have a negative impact on the Company’s sales sheet for the year and that’s the release of the iPhone Mini – the budget version.

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According to Gene Munster, analyst from Piper Jaffrey, Apple could ship around 62 million iPhone 6 handsets by the end of the calendar year, beating market expectation estimates of around 50 million total numbers of iPhone’s – including the 4, 4S and 5 as well as the 6 .

However, he has given a warning that the budget iPhone could have a serious negative impact on their sales figures and could cause problems. While it is expected to open up a brand new market for Apple it could also destroy their overall sales.

Munster was reported as saying that they expect the iPhone Mini to “cannibalize” the sales figures to the tune of around 50%. However, he did admit that their figures could be a little out considering there have been no official launch announcements for any new handset yet.

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He expects Apple to sail past their sales figures for last year by around 17%. He also predicts the around 12 million of the budget handsets will be shipped by the end of December.  Current sales figures from Apple indicate that, for Q3, around 31 million iPhones had been sold, up from 26 million for the same quarter last year. This has prompted a comment from the CEO of Apple, Tim Cook that the iPhone is their most populate handset. He went on to say that there will be new products coming out in the fall and cross next year.

What are your thoughts? Do you think the budget iPhone will destroy or boost the sales figures?

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