iPhone triples Apple’s addressable market in China and is incremental to EPS even at a low 40% (gross margin) and with flattening growth for the legacy iPhone… Even in a scenario of low 40% gross margin and 1/3 iPhone cannibalization rate (flattening legacy iPhone shipment growth), which we view as conservative, the iPhone Mini adds incremental revenue and gross profit dollars.'”
“And, she says, China Mobile’s 3G network is taking off and that carrier could be a big driver for iPhone growth in that country,” Kollmeyer writes. “AppleInsider calculates that Apple could add nearly $2.4 billion to its handset business via a $330 iPhone mini.”
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