In a report, analysts at Credit Suisse say that Apple will be able to generate $68 billion (55%) in additional sales by doing nothing.
Apple won’t have to do anything radical, however. For example Apple won’t have to introduce a low-end phone, which Credit Suisse’s analyst figure is ‘likely’ in 2012.
This increase in sales will come about due to the emergence of 244 million middle class customers in the Brazil, Russia, India, China and Mexico, who will have a spending power equivalent to their American brethren. Apple will only have to continue doing what it is doing. The power of demographics!
However, Apple does not seem to be a company that will be happy with status quo. If past trends continue, one can expect Apple to make a radical play for a new market. The low-end iPhone may be Apple’s stab at the real El Dorado – the emerging middle classes who do NOT have rich world spending power and lower-income residents of Apple’s main markets. In the next 3 years, 400 million people are expected to buy cellphones in India alone. If Apple can get a large chunk of these consumers onto its ecosystem, the future cross-sell and up-sell opportunities will be immense. There lie considerable riches at the bottom of the pyramid.
Moral of the story – The Exploitation of existing certainties has a potential $68 billion upside, but this pales in comparison to the potential of the Exploration of new opportunities. An ambidextrous approach could see Apple revenues grow many fold!