More details about "mixing to the low-end" were also provided in the note. "September quarter...low-end iPhone (15 million units) & iPhone4/4S (10M) volume, will likely meet or exceed that of iPhone5S (10M) and iPhone5 (5M)."The Citi note mentions a comment by Apple Chief Operating Officer Peter Oppenheimer to back up the expected shift to cheaper devices, including the Mini. "We are managing the business for the long term and are willing to trade off short-term profits where we see long-term potential," Oppenheimer said during the most recent earnings conference call.
Citi sees this increased emphasis on more inexpensive devices as inevitable. "We detect [a]...pattern to lower-end mix that we view as part of a natural and inevitable trend for Apple and indeed the entire mobile device industry."