Howard Ward, chief investment officer of growth equities at Gamco Investors discusses Apple’s preparation of a smaller, cheaper iPhone and how they can use that to appeal to emerging markets.

Ward said, “Apple’s reached a point where they can’t ignore the largest segment of the market, which is the emerging markets, where you have billions of people. If they can lock them into the Apple family, invite them in, get them to use Apple products, get them to buy additional products on top of the phone, and then, as their incomes rise, a higher-priced phone.”

Ward speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Direct link to video here.

Related articles:
Bloomberg: Apple developing cheaper, smaller iPhone for 2013 holiday release – January 9, 2013
WSJ: Apple prepping less-expensive iPhone – January 8, 2013
Apple to launch low-cost iPhone with 5-inch display for emerging markets in 2H13, sources say – January 8, 2013
Barclays: Cheaper iPhone for emerging markets ‘key’ for Apple – December 4, 2012