Apple was expected to introduce a new and cheaper iPhone model to the world soon. This cheaper iPhone will also have a bigger screen, something which has been a staple of Samsung offerings.

There was a reason to this sudden change of heart for Apple. Analysts believed the reason was to increase its stronghold in China and overtake Samsung's leadership.

Currently, Apple's products were priced too highly for Chinese consumers. An average Chinese earned around US$640 per month. The new "budget" iPhone will sell for US$99.

In addition, Apple planned to open new stores in the country within the next two years. "We're going to double the number of retail stores in China for the next two years," Apple CEO Tim Cook said. "We're continuing to lift iPhone point of sales and iPad sales, both of which are currently lower than where we would want them or need them today. But we're doing that very cautiously with what we want to do with great quality. And so I continue to believe that in the arc of time here, China is a huge opportunity for Apple," he added.