Why the budget iPhone would throw the smartphone market into chaos

The buzz around the budget iPhone has grown deafening, with new reports about the device coming out on a weekly basis. This will be a product launch with a unique impact because of two trends that define the current smartphone market. First, the overall smartphone volume growth is projected to slow down from more than 50% in the fourth quarter of 2012 to about 36% in Q4 2013. Second, the Q4 2012 growth rates of the three biggest Asian smartphone vendors have remained superheated, with Samsung (005930) at 76%, Huawei at 89% and Sony (SNE) at 56%. What made this was possible was Apple’s slowdown to 29% growth during the past Christmas season and the notably weak year-on-year numbers from



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