Morgan Stanley had a very good note out earlier today reporting that Apple needs to issue an iPhone mini to capture share in China. This is what I have been advising as the market share margin trade-off is favourable for Apple's bottom line. Morgan Stanley estimates that a cheaper emerging market-oriented iPhone for the Chinese market would cut Apple's margins down to 49% from 51% while the new handset would boost the pre-tax bottom line by $2.4 billion and triple Apple's market share in China.
Last week, in my post on the mobile market, I wrote "what declining handset sales mean for the mobile industry". And this is declining emphasis on mobile adoption and increased focus on handset upgrades, a shift that will lower handset average selling price. This should put increased emphasis on em...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.