“Global Equities Research‘s Trip Chowdhry today writes that he has been approached by clients asking him what he makes of the rumored iPhone deal between Apple and China Mobile,” Tiernan Ray reports for Barron’s.
a) iPhone is the Anchor product that brings the customers into the Apple Family; b) Depending on the geography 40% to 60% of iPhone users also become an iPad user; c) And about 20% of iPad users become Mac user. So the incremental opportunity based only on China Mobile only can be thought as follows: a) First 12 months iPhone Sales = 15 mil to 20 mil; b) First 12 months iPad Sales (40% to 60% of iPhone Sales) = 6 mil to 7 mil; c) First 12 months Mac Sales (20% of iPad Sales) = 1.2 million.
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