[conservatism_IS_compassion]

A netbook that sells for $600-700, about 4x the size of an iPhone and running OS X will produce more profits than all the $300 netbooks in the world.

the far bigger majority lower income folks in the US and in developing countries like China, India, Brazil etc can't afford to buy expensive Macs.

True. But a long time ago it was pointed out that there was inside of India a "France." That is, there were as many people in India who would be rich, or middle class, in France as there were Frenchmen in France who were rich or middle class.

The upshot is that as China, India and Brazil gain wealth they will also produce Mac customers along with huge numbers of commodity computer customers, just like here. So you can go ahead and cry (about people buying Oldsmobiles when you think everyone should have a Chevy) while Apple is laughing all the way to the bank.

BTW, when it comes to cell phones I buy cheap, not iPhone.

[SmokingJoe]

“A netbook that sells for $600-700, about 4x the size of an iPhone and running OS X will produce more profits than all the $300 netbooks in the world”

It will have to sell first, before it can make any profits for Apple. As at right now, Apple is quickly losing market share in the overall laptop market to fast moving upstarts like Acer and Asus.

“That is, there were as many people in India who would be rich, or middle class, in France as there were Frenchmen in France who were rich or middle class”

Not correct. The “study” was debunked. The “middle class” in India is vastly overrated.
However, even if the middle class in India were the same as France, that still leaves another over ONE BILLION Indians, who can't afford any Apple laptop at all, but who can be in the market for $250/$300 netbooks, which run XP just like any other Windows PC, have hard drives, 1 gig RAM, and even webcams.

“The upshot is that as China, India and Brazil gain wealth they will also produce Mac customers “

China has been growing at over 15% GDP growth for over 20 years now, and most Chinese still don't buy Macs today, because Macs are too expensive, but instead buy Windows PC’s. What makes you think the Chinese will suddenly start buying expensive Macs at a time when netbooks sales have rocketed up even in very high income Europe, where netbooks are even more popular than in the US?