In the Chinese market the consensus is that new equals good. People over there will be more inclined towards buying the new stuff even if they have to pay more. Apple has gotten the drift of it all and it is doing exactly along the same way.
So obviously, in such a scenario, a brand new but a smaller version of the iPhone (iPhone Mini) will do the job for Apple and it will give them enough leverage to make room for other products. “So even if the gross margin is 40 percent less and the cannibalization rate is a third of what it should be, Apple will still be able to make a profit.”
Obviously, China, with its gross population of 1.3 billion hungry customers, is a hotspot for Apple interest, and that’s where all the attention of the giant is at.
Also, Apple is pushing up the number of retail stores in China, and the number of 7 stores in the geographical segment has increased to 11. Cook points out that there are many more stores that need to be opened, and there are also reports that the point of sale locations will get bumped up from 7000 to 17000 every passing year.
Apple can supply the most anticipated device of all time from its inventory in the retails stores and the point of sale locations to bump up the sales and that device is the Apple iPhone mini, which has seen the face of rumors too many times.
Huberty’s face can glow from the success of the devices if the company can offer a low cost solution to the masses without compromising on quality. This also means that the shareholders whose smiles had disappeared since last September can make a grand comeback and this should look good for everyone around.
Post source: iphone5sreleasedate.com