$bbtitle
Apple Stock: 196.19 ( 0.00 )
RSS RSS Twitter Twitter
Search:
AppleInsider.com Archives News Bytes Reviews Anonymous Mailer Submit Story AppleInsider Forums Mac Prices Polls Advertise on AppleInsider Contact AppleInsider
Save over $268 on MacBook Pros and $150 on iMacs with special coupons: Mac Pricing Guide updated Feb. 9th (Find the best prices on Macs).
Friday, May 15, 2009

Apple execs disclose options for boosting iPhone market share

By Katie Marsal

Published: 02:00 PM EST

iPad hands-on preview
Apple executives said this week they believe the iPhone remains in its infancy and went on to -- somewhat uncharacteristically -- reveal a series of strategic measures they may employ in the near term to help grow the handset's share of the booming smartphone market.

The comments came during a meeting between senior company officials and analysts for Oppenheimer, who stopped at the iPhone maker's Cupertino-based campus Thursday as part of a bus tour that also swung by the headquarters of Synaptics, Trimble Navigation, Zoran, and Cypress Semiconductor.

In a report on the meetings issued to clients Friday, analyst Yair Reiner said Apple sidestepped his questions on new products but remained upbeat about the potential for "considerable" growth through share gains in two of its three core business segments: the Mac and iPhone.

On the Mac side, Apple indicated that some of its strongest prospects for share gains exist internationally, where growth has recently outpaced that of the U.S. For example, the company said last month that unit sales and revenue grew 5 percent and 18 percent, respectively, on a year-over-year basis in Europe compared to an 8 percent unit decline and 8 percent revenue increase in the Americas.

Meanwhile, Reiner wrote that the "iPhone is still in its early days and could gain share by: providing more functionality; lowering prices; growing geographically; or segmenting the market with different models."

Uncertain whether these assertions where those of the analyst or derived from specific comments by Apple, AppleInsider contacted Reiner for clarification. Surprisingly, the remarks came from management. "[T]hey are not saying they will necessarily do all of these," the analyst said. "This is basically the menu of options."

Still, the revelation is noteworthy given that it's the first time members of the company's leadership have expressed openly that they may be interested in catering to a broader demographic by fragmenting the iPhone line into a family of phones with materially distinct features and price points.

These comments may support the discovery of references to multiple new iPhone models in the company's pre-release builds of iPhone Software 3.0. The remarks on lower pricing are similarly interesting, though they've been made previously during earlier sit-downs with other analysts.

For his part, Reiner says he expects "some combination of all these" options to materialize over the next six months. In speaking to AppleInsider, he added that when it comes to segmentation of models, "Apple said that one thing would be a constant: iPhone will remain a software centric device."

Oppenheimer's visit to Apple's campus was the second in as many weeks by an equity research firm that provides ongoing coverage of the company. Last week, Kaufman Bros. analyst Shaw Wu made the trip in conjunction with a pack of investors that tagged along for the ride down from San Francisco..

In his write-up of the face-to-face encounter with Apple chief financial officer Peter Oppenheimer and Tom Boger, a senior manager in the company's Mac division, Wu similarly noted that no new product information was shed. However, he said he walked away from the sit-down with higher conviction in his "Buy" thesis on the company and a belief that Apple shares can support a higher trading multiple going forward.

"Apple seemed particularly excited about the China market but wouldn't comment on timing," he said, referring to the iPhone maker's prospects for capitalizing on the world's largest cell phone market, and suggesting a move into the region could come as early as this summer alongside new iPhones.

Government statistics indicate that there are more than 600 million wireless subscribers spread across the country, with market research firm iSuppli estimating that another 90 million are likely to sign up with a wireless provider this year. So the stakes are high and share ripe for the picking.

Both China Mobile, the world's largest wireless provider, and China Unicom, its smaller rival ranking second in the country, have both confirmed ongoing negotiations with Apple. However, recent reports indicate that momentum may have recently shifted in China Unicom's direction after talks between Apple and China Mobile, believed to be its first choice of partner with 415 million subscribers, reportedly broke down.

At the root of the issue were reported demands on the part of China Mobile that it be able to control the local version of the App Store. The carrier was also at one point said to be asking that Apple ship it iPhones with both Wi-Fi and 3G technology disabled for competitive reasons. And while there's no concrete information to suggest Apple would agree to make such concessions, references to "ChinaBrick" discovered in betas of iPhone Software 3.0 leave room for debate.

Apple could also approach China with a multi-carrier strategy, which turned out to be a healthy move in the land of Oz given that it led to increased competition, and ultimately more options for consumers, company officials told Wu during their meeting.

"In regards to new carriers beyond AT&T in the U.S., management commented that it remains happy with AT&T but that competition has been good and cited Australia as an example where there are three carriers carrying iPhone," Wu wrote.

Filed under : iPhone 94 Comments ] 
Story topics: China Unicom, Kaufman Bros, Shaw Wu, China Mobile, iPhone Hardware 3.0   Print ] [ Story Link ] 



Mac Poker players can play Full Tilt Poker for Mac and get 100% to $600 free with bonus code MP600, courtesy of Online Poker Mac
AppleInsider Features
Hot Forum Topics

Recent Articles
Parallels takes virtualization speed crown in head-to-head with VMware
Apple releases iPhone OS 3.2 SDK for iPad
Apple seen extending exclusive iPhone deal with AT&T
iTunes price increases mean slower sales for music labels
Apple introduces 64-bit Aperture 3 with Faces and Places
Apple's share of U.S. smartphone market grows to 25% - study
iPhone OS 3.1.3 sees 14% adoption in 6 days, new hack released
Amazon rethinking Kindle in the wake of Apple iPad
Purported 4th gen Apple iPhone parts show largely unchanged design
Execs say Apple could lower iPad price if market demands it - report
Consumers lose interest in iPad after Apple's unveiling - survey
Higher Amazon e-book prices expected to coincide with iPad launch
Inside Apple's iPad: VGA video output
Unannounced Core i7 Apple MacBook Pro surfaces in benchmarks logs
Apple's new beta of Mac OS X 10.6.3 includes few changes
One in five physicians likely to purchase Apple iPad - study
Sling Media says it didn't change iPhone SlingPlayer to appease AT&T
Credit Suisse: 75% chance AT&T keeps iPhone exclusivity in 2010
Apple denying iPhone apps that use location framework for targeted ads
Apple's iPad deal gives Hachette pricing leverage against Amazon
Eccentric but effective Steve Jobs pitches iPad to NYT execs
Owners of flickering 27-inch iMacs claim 15% refund from Apple
IDC: Apple iPhone was No. 3 smartphone in 2009 with 14.4% of market
Future Apple iPhones could share current location during a call
AT&T, Sling Media partner to allow 3G access on iPhone SlingPlayer
Apple's iTunes Preview now offers browser-based App Store access
Amazon acquires touch-screen maker for future Kindle project
Nehalem Mac Pro systems suffer audio-based performance issues
Two new hires are Apple's latest moves in mobile advertising
AT&T outbid Verizon with cheaper Apple iPad data plans - rumor
Apple seen moving 2M iPads in 2010 before sales 'catalyst' emerges
Apple iPad deal pushes another publisher to renegotiate with Amazon
Apple allegedly selects new manufacturer for next-gen iPhone
ScrollMotion tapped by publishers to develop textbook apps for iPad
Apple denies iMac production halt as shipment times improve
Apple releases iPhone OS 3.1.3 with battery reporting fix
U.S. senator presses Apple on human rights practices in China
Photo of Apple's next-generation iPhone in the wild - sources
Despite sales growth, Apple's iPhone loses market share - report
Intel 6-core i7-powered Mac Pro rumored to launch this month

 
Advertisements








AppleInsider RSS Feed
AppleInsider © 1997-2008
Please review our Privacy Policy.
Written/Edited/Compiled by the AppleInsider Staff.