While Apple (NASDAQ:AAPL) increased the size of the iPhone 5′s screen to 4-inches, yet another analyst says it will head in the opposite direction to take on Samsung in overseas markets,
CNET notes. Strategy Analytics analyst Neil Mawston has joined a number
of other analysts arguing that Apple will look to compete with Samsung
in emerging markets by releasing a cheaper iPhone. In order to reduce
the new phone’s cost, Apple will reduce the size of its touchscreen.
While other analysts have suggested that an iPhone Mini could debut as
soon as this year, Mawson considers that unlikely. He anticipates that
the smaller phone will be unveiled within the next three years, most
likely in 2014. Will be a target to Indian and Chinese markets.
Alternate Choice: Despite a growing chorus of reports that Apple will partner with Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to produce chips for its mobile devices, Forbes notes that many Silicon Valley experts increasingly expect it to tap Intel (NASDAQ:INTC)
instead. Apple has been reportedly moving to reduce its dependence on
Samsung as a manufacturing partner as the two companies have become
global competitors in the mobile device market. Previous rumors have
suggested the TSMC has begun preparing test runs to make Apple’s A6X
mobile processors. However, MKM Partners analyst Daniel Berenbaum
suggest that Intel is a more logical choice for the role since it’s
greater chip-making capacity could allow it to act as an Apple chip
foundry without the need for new capital investment. Rumors suggest that
TSMC has been investing heavily to accommodate Apple’s anticipated
orders. But Berenbaum says that TSMC’s chip-making capacity remains too
restricted to meet Apple’s heavy demand.