Do you want to know why Cook has made trips to China ?? DO YOU??
He went there to convince the Chinese that Appl has the ability to provide an Iphone at what they (chinese) think is a fair price to the millions of Chinese who want an Iphone but can't afford it at todays price.
SO, what do you think will happen??
I'll tell you. Appl will provide a low cost phone that will be low enough in price to satisfy every mobile company in China and the Chinese population who would only love to own an Appl product.
It is a way to show you have arrived with an Appl product to the majority of Chinese.
China loves Appl as well. They have become a team!