Analysts said that the rumoured launch of Apple's budget iPhone or iPhone Lite would not ease the concerns on the market slowdown of high-end smartphones. Jim Cramer, on his program called 'Mad Money', stated that it would even upsurge the worries since these were "the wrong phones."

According to Crammer, the vast consensus was the fact that smartphone market would reach saturation soon due to the little growth left. His notes also accounted for the 31.2 million iPhone sales in contrast with the 26 million in the year-ago quartile.

Cramer reiterated that Apple was known for its first-class smartphones. Launching a low-cost device made up of plastic and brightly colored materials would not only threaten Apple's bottom line, it would also cannibalize the sales of its higher-revenue flagship iPhone.

The gross margin of the Cupertino, California-headquartered company plunged from 42.8% last year to 36.9% this year. Its sales in China slipped too. Its sales became 13% or just US$5 billion in June from 18% in March.  "Things aren't as good as Apple says and things aren't as bad as the analysts say," he concluded.