It sure seems that the rumor mill is picking up some serious speed here regarding Apple’s interest in offering more budget-friendly devices at a lower price point. Bernstein Research analyst Toni Sacconaghi gave an account yesterday of a meeting he had with Apple COO Tim Cook, CFO Peter Oppenheimer and VP Eddy Cue, and he learned quite a few things about Apple’s plans to expand market share in the near future.
In Sacconaghi’s report, he wrote that Cook has huge plans to expand the iPhone’s market share; he said Apple is “likely to develop lower priced offerings”, and has some tricks up their sleeve to address the prepaid market. He also said that Apple doesn’t want its products to be geared primarily towards the rich.
Among Cook’s other points in the meeting:
- Apple has spent “huge energy” in large prepaid markets such as China
- The tablet market could eventually blossom to become a $60-100 billion business for Apple (not including the tablet market as a whole)
- Apple has a solid head start in the tablet competition, and even better things are in the pipeline
- Expanding to more carriers is a huge priority for Apple now
- The iPhone has expanded the sales of other Apple products, especially in emerging markets
Ultimately, Apple is planning to continue conquering the world through expanding the market for the iPhone (particularly by lowering its prices and offering new solutions to prepaid customers), and take advantage of the exploding demand in tablets. This easily adds fuel to the fire of the rumors that say Apple is planning an iPhone “Nano” of some sort that could be sold for much less than the current iPhone 4.
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