Low Cost iPhone Would Be An 'Innovative Category-Killer'

Apple's primary criterion for a low cost iPhone is an 'innovative, category-killer experience', reports RBC Capital's Mike Abramsky after meeting with Apple COO Tim Cook and CFO Peter Oppenheimer.

Barrons relays the report that offers "takeaways" from the meeting.

Apple has a "massive opportunity" in China, with the market there "significantly untapped" despite Apple revenue of $9 billion in the country. Despite an "explosion" of devices based on Google's (GOOG) "Android" operating system, Apple can maintain a competitive advantage through its integration of hardware and software, and its "curation" of the "application ecosystem."

Regarding a low-cost iPhone, Abramsky writes that "Apple's primary criterion for launching a lower-end iPhone is an innovative, category-killer experience."

Abramsky notes that the component marketplace is a now "buyer's market" which could help Apple margins. He also says that Apple may settle with Android phone makers to set itself up with favorable agreements in countries that have less rigorous IP regulations.

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