Cheaper iPhone expected on Monday as Apple counters drop in sales

San Francisco

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

The launch of such a phone - expected to be called the iPhone SE - would represent Apple's second bid for the crowded mid-tier market after an unsuccessful foray three years ago.

It might give the world's best- known technology company a boost in the fast-growing Indian, Middle East and African markets, but also risks cutting its average phone prices and profit margins.

"The iPhone SE provides a new incentive to upgrade for iPhone holdouts who don't w…