"There's always a large junk part of the market. We're not in the junk business," Cook said. "I'm not going to lose sleep over that other market, because it's just not who we are."
However, Apple has less than a 5% marketshare in India and smartphones are quickly becoming commodity items. As the cost of technology falls, Apple may soon face low-cost, high-quality phones that are "good enough" even if not up to the gold iPhone standard.
I can already hear iFans bemoaning their opinion that Windows Phone software isn't as pleasing as iOS, but even the most ardent Apple fanboys and girls must admit business runs on Windows. If you're not already considering margin headwind for Apple you should be because other investors are.
Microsoft and Nokia's (NOK) partnership ensures a steady supply of high quality desirable phones utilizing the Windows Phone platform. What's missing is the breadth and depth of iOS and Android's app market. A free Windows Phone OS will rectify that shortcoming.