For those who follow Apple Inc. (NASDAQ:AAPL) pretty religiously, you might just recognize a pattern here with the latest comments from the company in juxtaposition with reality. When there are rumors about new products or services about to be unveiled, Cupertino seems to take the approach of denying the rumors as a way to squash all the talk.
Even if the rumors are true. When it comes to denial, it isn’t just a river; it’s basically a way of life for Apple Inc. (NASDAQ:AAPL).
Take into account past comments by Apple executives at certain times. In 2005, Apple denied it was working on an iPod model that could play video, only to launch such a device within weeks; and then there are the comments about a 7-inch tablet wasn’t going to happen in 2010 because i was too small to compete with the iPad and too big to be an iPhone – yet the iPad Mini came out last fall.
Consider these comments from Apple Inc. (NASDAQ:AAPL) CEO Tim Cook and senior vice president Phil Schiller, and you be the judge.
Speaking while on a visit to China, Cook addressed the emerging Chinese market, which has seen its wealthiest consumers glom on to the iDevices, including the latest iPhone. “China is currently our second largest market. I believe it will become our first. I believe strongly that it will,” Cook told Xinhua in an interview. By that comment, he means that the number of consumers of iDevices in China will eventually outpace the numbers in the U.S., though there are fewer people in China that have the economic status to readily afford the current iPhone models.
However, with a population that is three times greater than the 310 million people in the U.S., Cook’s statement by itself seems pretty innocuous. But is it, compared to Schiller’s comments?
But one should consider that much of China is still very poor, especially in the rural areas, and the current iPhone would be out of touch for a large majority of the people.
Bring in Schiller, who on the same trip to China, said in an interview with a separate publication that Apple Inc. (NASDAQ:AAPL) as not in the business of grabbing more market share with a low-end smartphone, as rumors are currently suggesting. “More people are using smartphones in China, some manufacturers are beginning to develop low-cost smartphones to replace feature phones, but this is not within Apple’s product development direction,” Schiller said.
Something similar was said years ago with the iPod, as Apple fielded questions about whether it would put out a cheaper model for the more thrifty, budget-conscious consumer. Apple denied that it was because it wasn’t part of the business model, yet not too long afterward the iPod Nano and iPod Shuffle hit the shelves.
In other words, are you buying what Apple Inc. (NASDAQ:AAPL) is selling? Do you believe China can be the No. 1 consumer market for Apple without a lower-priced iPhone? Can both Cook and Schiller be right? We’d love your thoughts about Apple and about these rumors.
DISCLOSURE: I own no position in any stock mentioned.
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