Barron’s is reporting on a research note issued by Mike Abramsky, an analyst for RBC Capital Markets, wherein he interviewed Apple COO Tim Cook, and CFO Peter Oppenheimer.
First off, both Cook and Oppenheimer believe China is a “massive opportunity”, as a country wherein Apple could see huge growth, even though Apple is already bringing in $9 billion a year from that market.
Although Cook and Oppenheimer did not outright acknowledge the existence of a new, low-cost, prepaid iPhone model, they did state that a device would have to be an “innovative, category-killer experience” to garner significant penetration in the lucrative Chinese market. If nothing else, it did show that Apple is looking hard at the lower-end market, and how best to approach it.
Other items noted in the report were Apple’s gross margins, and how they will likely be higher than expected this quarter due to decreased component costs. The other subject was Apple’s efforts to settle with Android handset manufacturers in regards to the ongoing patent suits the company is embroiled in.
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TAGS: low-end iPhone
