A  man holds an iPhone 6 in a mobile phone shop in Moscow September 26, 2014.
IN PHOTO: Personal files are now stored using cloud. Too, relationships are built and strengthened via applications in cloud. REUTERS/Maxim Shemetov

Apple is heavily rumoured to launch a 4-inch, iPhone 6 Mini budget smartphone this year. In 2014, Apple finally came out with large-sized smartphones, namely the iPhone 6 and iPhone 6 Plus to pit against large-sized Android powered smartphones and phablets. All the iPhones launched prior to the two iPhone 6 handsets were 4-inch or smaller devices. By launching a 4.7-inch iPhone 6 and a 5.5-inch iPhone 6 Plus phablet, Apple has broken all the previous iPhone sales record.

PhoneArena states that the Cupertino company may launch a smaller version of last year's flagship handset in 2015. As of this writing, there is no official information on the name of the device. However, the rumour mill is referring to it with multiple names such as the iPhone 6 Mini or the iPhone 6S.

According to Fool, the reason behind launching a small-sized iPhone 6 this year is that it would allow Apple to benefit from offering its latest flagship in different sizes and price points. Apple is already using this strategy on its other products like the iPad and iPod. It states that the iPhone 6 Mini will appeal those users who owned the 4-inch or lower iPhones like the iPhone 5S and the iPhone 5C that are pocket-friendly and can be easily operated with single hand.

The iPhone 6 Mini is expected to come with inexpensive price tag and it will be majorly aimed to towards developing markets like China, Brazil and India where users can avail unlocked smartphones for as low as $100. Also, the cheaper price tag of iPhone 6S will attract iPhone lovers who feel that the newly launched iPhone 6 and iPhone 6 Plus are overpriced.

Citing a recently conducted research from eMarketer, Fool further states that even though 42 percent smartphone users in the U.S. use Apple iPhones, it is not doing that well in emerging markets. In China, iPhone market share is 5 percent, and in Brazil it is around 4 percent to 9 percent and in India, it records a market share of 2 percent only. This is an indication that Apple will have to roll out cheaper smartphones to generate revenue from these growing markets.

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