Apple Insider reports that Apple is predicted to drop the price of an existing iPhone to $200 unsubsidized in 2013

Analyst Gene Munster with Piper Jaffray expects Apple will likely reduce the price of an existing iPhone to about $200 by September of next year, down considerably from the $375 unsubsidized price at which the company currently sells the 8-gigabyte iPhone 3GS. Such a move would be "important" for the company, he said, as Apple's smartphone market share is currently weakest in emerging markets where the company competes with less expensive Android-based handsets.

Aided by the launch of a cheaper contract-free handset, Munster sees Apple's global smartphone share growing from about 20 percent in calendar year 2012 to 32 percent in 2015.

But a $200 iPhone would also significantly reduce the average selling price of Apple's smartphone, which has maintained an average of $641 since the launch of the iPhone 3G in June of 2008.

  Apple predicted to offer $200 unsubsidized iPhone in 2013