Apple Not Likely to Lower Costs of the iPhone
According to a report released from Citigroup tech analyst Richard Gardiner, it seems Apple (NASDAQ:AAPL) is in no hurry to either lower the price of the iPhone or otherwise sell a cheaper form of smartphone. After a meeting with Apple CEO Tim Cook and CFO Peter Oppenheimer, the two company leaders both stressed that they believed that if they continued to focus on “great products,” than people will still be willing to spend more than average for them. Judging from the company’s outstanding fourth quarter results last week, it’s hard to say they’re wrong.
Cook also reiterated to analysts his belief that tablets will eventually surpass PCs in terms of volume owing to innovation in mobile technology and iOS. They pointed to the incredible success that developers have had targeting iOS platforms, with $700 million in earnings in the fourth quarter and almost $4 billion in earnings to date.
The company also downplayed suggestions that it will launch and ARM-based (NASDAQ:ARMH) MacBook Air to compete with Microsoft’s (NASDAQ:MSFT) impending Windows 8 ARM tablets this year and laptops next, leaving the analysts to believe that they are currently satisfied with the potential of the iPad. Cook also mentioned that the long term shift for the future will be towards iCloud storage, and also discussed that Apple TV is presently being treated as something of a “hobby” by the company, especially in the face of the need of complex carrier agreements just to get the idea off the ground.
Cook also made clear that the company will be targeting China in the coming year. The market accounted for 12 percent of total revenue last year, up from 2 percent in 2009. And this is despite the company not yet having deals with the countries top two wireless carriers China Telecom and China Mobile. Analysts believe that when the iPhone 5 is released, which will feature standard software compliant with Chinese standards, those deals will be quite readily made.