A lower-priced iPhone could generate a nearly three-fold increase in demand for Apple in China, as its device leads soaring demand for 3G handsets and smartphones, according to a new analysis.



From Apple Insider:

In a research note released on Wednesday, investment bank Morgan Stanley reports that, among Chinese customers who are in the market for a 3G handset but hesitant to buy Apple's iPhone, 85% cite price as the key factor in their decision. Survey responses further suggest that, at the right price point, demand for the iPhone could increase by as much as 2.6x.

Morgan Stanley's AlphaWise market survey indicates that Chinese respondents already looking to buy a 3G phone are willing to pay an average maximum price of 2,716RMB ($425). But, those who said they were unlikely to buy an iPhone noted that 2,200RMB ($344) is the most they could afford. The firm's findings fall roughly in line with a mid-range 'sweet spot' of $350 that industry watchers believe would give Apple greater market penetration.

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