Apple iPhone 4, is priced 133% higher than the average low cost model in those six markets, which means that right now Apple is currently serving the top of the low-end market. The Apple iPhone 4S is priced at 48% more than the average mid-range phone and the Apple iPhone 5 has a 19% premium to the average high-end unit. That means that Apple currently does not really have a price competitive phone in the low-end, which is where the new model to launch in Q3 will lie.
In emerging markets like China and India, the average low-end handset runs $138 and $140 respectively, according to Munster. The Apple iPhone 4 is priced about 265% higher than the average low priced model in those countries, meaning that for Apple to compete in those markets, it needs to offer a cheaper phone.