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"Expect Apple (AAPL) iPad Mini with Cellular Function soon" Says Tim Cook

Published on 13 January 13
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Itâs clear that after CEO Tim Cookâs announcement that Apple Inc. (NASDAQ:AAPL) will not be launching a cheap iPhone just for the sake of rustling up market share that Appleâs strategy appears to be more complex than any rumor in the mill can fully realize, but that doesnât mean that the Cuppertino company still doesnât plan to take Chinese markets by force.

According to CNETâs Don Reisinger, Cook has promised them an iPad mini with cellular functionality by the end of January instead via an interview with the Chinese news outlet Tencent. This offer would fit new found Chinese consumer demand well, as Topeka Capital Markets Brian White predicted after the iPad mini with WiFi launched on December 7.

In an investorâs note written last month, White mentioned that the iPad Mini would be the next big thing in China, and that the smaller form factor and lower price point will allow Apple to sell the iPad Mini in more meaningful volumes versus the regular-size iPad.

"Expect Apple (AAPL) iPad Mini with Cellular Function soon" Says Tim Cook - Image 1So what does an iPad Mini with WiFi for Chinese customers mean for Apple? Well, at this point itâs hard to tell. Even if an iPad is capable of connecting to wireless networks in the country notorious for The Great Firewall, thereâs no consistency in the ability to connect at the fastest speeds. 4G networks are spotty across the country, but 3G is a highly-available standard.

It also doesnât mean that talks with the Chinese government to get web-based services in the hands of consumers there in a timely manner have gone well yetâso this accouncement may be offering far too much to Chinese consumers prematurely if a large number of apps canât be distributed to a consumer base with devices ready for them.

And the last thing it doesnât mean is that we have any idea what Cookâs latest talks with China Mobile are all aboutâtheyâre definitely not about a cheap iPhone anymoreâunless theyâll exclusively offer the Mini with data contracts that will make them worth their while for Chinese consumers. Considering that China Mobile has over 700 million subscribers, this development could put iPad Minis in the hands of a large number of people.

A deal with China Mobile might be tough in coming, however, even if talks are escalating. Theyâve been ongoing since 2009. The main issue? Itâs rumored that China Mobile is still holding out for a cut of all app download revenues. Itâs clearly operating from the leverage standpoint in negotiations, as Apple has so far only been able to penetrate smaller carries. Apple is also likely reluctant to agree to such an unprecedented move unless its hand is forced. It may mean opening the floodgates for demand for revenue from other carriersâand would either create a substantial loss for Apple or a greater cost for consumers everywhere.

In his press conference, Cook also mentioned that Apple will open more than 25 retail stores across China in an effort to get more Apple Inc. (NASDAQ:AAPL) products into the hands of hungry consumers. Thereâs no projected estimate on how long it will take Apple to realize that goal.

(Source: PF Hub)

Itâs clear that after CEO Tim Cookâs announcement that Apple Inc. (NASDAQ:AAPL) will not be launching a cheap iPhone just for the sake of rustling up market share that Appleâs strategy appears to be more complex than any rumor in the mill can fully realize, but that doesnât mean that the Cuppertino company still doesnât plan to take Chinese markets by force.

According to CNETâs Don Reisinger, Cook has promised them an iPad mini with cellular functionality by the end of January instead via an interview with the Chinese news outlet Tencent. This offer would fit new found Chinese consumer demand well, as Topeka Capital Markets Brian White predicted after the iPad mini with WiFi launched on December 7.

In an investorâs note written last month, White mentioned that the iPad Mini would be the next big thing in China, and that the smaller form factor and lower price point will allow Apple to sell the iPad Mini in more meaningful volumes versus the regular-size iPad.

"Expect Apple (AAPL) iPad Mini with Cellular Function soon" Says Tim Cook - Image 1
So what does an iPad Mini with WiFi for Chinese customers mean for Apple? Well, at this point itâs hard to tell. Even if an iPad is capable of connecting to wireless networks in the country notorious for The Great Firewall, thereâs no consistency in the ability to connect at the fastest speeds. 4G networks are spotty across the country, but 3G is a highly-available standard.

It also doesnât mean that talks with the Chinese government to get web-based services in the hands of consumers there in a timely manner have gone well yetâso this accouncement may be offering far too much to Chinese consumers prematurely if a large number of apps canât be distributed to a consumer base with devices ready for them.

And the last thing it doesnât mean is that we have any idea what Cookâs latest talks with China Mobile are all aboutâtheyâre definitely not about a cheap iPhone anymoreâunless theyâll exclusively offer the Mini with data contracts that will make them worth their while for Chinese consumers. Considering that China Mobile has over 700 million subscribers, this development could put iPad Minis in the hands of a large number of people.

A deal with China Mobile might be tough in coming, however, even if talks are escalating. Theyâve been ongoing since 2009. The main issue? Itâs rumored that China Mobile is still holding out for a cut of all app download revenues. Itâs clearly operating from the leverage standpoint in negotiations, as Apple has so far only been able to penetrate smaller carries. Apple is also likely reluctant to agree to such an unprecedented move unless its hand is forced. It may mean opening the floodgates for demand for revenue from other carriersâand would either create a substantial loss for Apple or a greater cost for consumers everywhere.

In his press conference, Cook also mentioned that Apple will open more than 25 retail stores across China in an effort to get more Apple Inc. (NASDAQ:AAPL) products into the hands of hungry consumers. Thereâs no projected estimate on how long it will take Apple to realize that goal.

(Source: PF Hub)

This blog is listed under Gadgets and Mobility Community

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