smaller iPhone could help Apple to compensate drop in phone sales

Apple Inc is expected to launch a smaller iPhone, cheaper on Monday aimed at emerging markets and possibly China, the world's largest buyer of smartphones as it seeks to reverse a decline in global sales of its most important product.

The launch of a phone for example - is expected to be called the iPhone - Apple represent second bid for the full midlevel market after an unsuccessful raid three years ago.

It could give the technology company best known the world a boost in fast-growing markets of India, Middle East and Africa, but also runs the risk of reducing their average handset prices and profit margins.

"The iPhone provides a new incentive to upgrade the iPhone representatives who do not want a phone big screen," said analyst Bob O'Donnell of TECHnalysis Research.

A less expensive iPhone could attract customers in emerging markets, O'Donnell said, but not a sure fire success because it can still be more expensive than competitors running Google's Android system, and many of the markets emerging markets have already developed a taste for larger screens.

Apple has invited the press to an auditorium at its headquarters in Cupertino, California, in Silicon Valley on Monday, a cozy place compared to the massive stages of San Francisco, which usually presents the new iPhone and the main products.

As is their tradition, Apple has been silent about what is on offer, but the technology and financial analysts are predicting a cheaper phone entry level with a screen about 4 inches (10 cm) which still runs some of the latest features such as Apple Pay.

The most compact design comes after its move to expand the size of the screens in the high-end iPhone iPhone 6 and 6 more phones in 2014, with such a large screen as 5.5 inches. Which it was widely seen as an attempt to match rival Samsung Electronics with its Galaxy phones large screen.

The iPhone is sold worldwide, but with a starting price $ 649 to the current top model without a contract, which is beyond the reach of many. A mid-range or entry-level phone could broaden the appeal of Apple, although it is unclear what price range to establish.

Apple still believes that the mid-size market is worth, analysts have said, as it seeks to counter the global spread of Android phones manufactured by Google Inc alphabet.

Research firm IDC expects technology an increase in sales of Android devices this year, to account for nearly 83 percent of smartphones sold worldwide. It is expected that iPhone sales fall slightly, representing 15 percent of the market.

Apple said in January that it expected a decline in overall iPhone sales this quarter compared with the same period last year, the first decline since Apple essentially created the smartphone market nine years ago. Product units around two thirds of sales of Apple and no other devices in your line are close in popularity.

Wall Street analysts worry the company has no other successful product to replace the iPhone. Apple is also expected to announce a new iPad on Monday in an attempt to keep afloat weak sales of tablets, and new bands for Apple clock, portable gadget that launched last year to mixed reviews.

If the iPhone was unveiled on Monday, will be the second race of Apple in the market for entry-level or mid-level after 5c iPhone, low-end phone with a plastic body color, which was launched in 2013. After the initial excitement, it not proved to be a bestseller and has since been removed from the Apple lineup.

The expected iPhone could give Apple a boost in the short term without falling into the lower end of the smartphone market dominated by Android devices, said analyst Patrick Moorhead of Moor Insights & Strategy, especially if you have the A9 chip high power company and supports a feature that makes the phone work best in wireless networks, called "carrier aggregation."

But even with that, he said the new phone will face stiff competition from Android.

"The new phones Huawei, LG, Samsung and Xiaomi are the best I've seen them in years," said Moorhead