Cheaper iPhone in 2012 could triple Apple's booming sales in China

According to a research note released by the investment bank Morgan Stanley on Wednesday, a lower-priced iPhone could generate a nearly three-fold increase in demand for Apple in China. The bank conducted research among Chinese customers who hesitate to but the iPhone. 85 percent of them called price as a key factor that prevents them from buying Apple’s smartphones. The right price point could increase demand for iPhone in three times in China.

The maximum price that Chinese customers are ready to pay is $425. But those who said that they were not going to buy an iPhone could afford to pay $344. Nearly 80% of those who took part in the research marked Apple as the leading brand in China. But in last quarter company's share of mobile phone purchases in the region fell from 12% to 7%.

In the third quarter of 2011, China area became the company's second largest market, behind only the U.S. China is "the fastest growing region by far."  China sales of iPhone were $4.5 billion in the September quarter, 16 percent of Apple’s total revenue, comparing with $3.8 billion Apple earned in the June quarter. Meanwhile, one analyst believes that the mobile market in China poses as much as a $70 billion opportunity for Apple.