too small a market? The US still has a staggering share of world GDP, and the per-capita GDP (remember, PPP doesn't matter from Apple's perspective) is much higher in the USA. I mean, the per-captita GDP in China is under $10K/yr. Not a lot of those people are gonna spend a grand on a phone.

I think this is one of those situations where you count dollars rather than heads.

My understanding is that the "next billion users" push that all the big companies are doing is a bit like putting macs in schools. It is a long-term plan 'cause yes, the developing world is poor right now. maybe those people who are poor now won't be poor in the future, and if they know how to use your ecosystem, that's great for you. It certainly seems like a good idea, but I don't think it's where you make your money today.

I really think if you were serious about that plan, you'd come out with a giant low-end phone; You remember the thinkpad W series? something like that. big and clunky and cheap. Apple needs an iphone 5c level cheap plastic reskin of last year's big phone for that.