It's a new year, but talk of Apple's need to produce an inexpensive smartphone is back. This time there is a name for the device: the iPhone mini. Friday, an analyst forecast the company could unveil a cheap iPhone in 2014 to combat Samsung's handset lead in the face of the high-end smartphone market "nearing saturation". To break out of its #2 position, Apple must follow Samsung's success of marketing to many different groups of consumers.

That's at least the main line of reasoning by analyst Neil Mawston of Strategy Analytics. To date, Apple has only subsidized iPhones that sell with a contract, in addition to the expensive contract-free offering and the somewhat discounted previous versions of the smartphone. Sooner than later, the company will need to recognize the untapped segment of inexpensive prepaid handsets, an area that could boost it beyond its chief rival...