Thursday, October 27, 2011

Thanks To China, Are iPhone Sales About To Explode Exponentially?

Two small posts on AppleInsider could potentially point to some very big gains for the iPhone in China, the world's largest mobile market by far.

The first report published yesterday, shows that the iPhone has already displaced worldwide leader Nokia as the number one brand in all of China.

In fact, since China Unicom began selling the iPhone last year, Morgan Stanley noted that Apple's revenues have surged from $3 billion to a mind-blowing $13 billion!

AppleInsider went on to report that iPhone sales in China also seem to be having a halo effect on the Mac, iPod and iPad lines as well, stating:

"The firm notes that sales of iPhones are also driving purchases of related Apple products, noting that Mac use is nearly four times higher among iPhone users, where Mac user share jumps to 35 percent from the standard 9 percent of the general population.

iPod use is also higher among iPhone users, with 63 percent of iPhone users buying iPods compared to 30 percent share among other smartphone users."

AppleInsider's second report, published just today, indicate that one of the biggest factors preventing even more Chinese from adopting the iPhone was its higher cost, and is something that Apple is expected to address soon with a much lower priced model, which, as AppleInsider pointed out could almost triple the iPhone's sales in the world's most populace country.

So, what does this all potentially mean for Apple?

Well, first of all, China is already Apple's second largest market after the U.S., but if the current explosion of Apple sales in China continues it could mean that China will soon replace the U.S. as Apple's largest and most profitable market in the very near future.

According to Tim Cook, Apple's new CEO, Apple is barely scratching the surface in China and any introduction of newer and cheaper iPhones there could potentially mean an extra $70 billion opportunity for the world's largest tech company.

Considering the current Chinese sales numbers that Apple is getting, and numbers it could potentially get after the introduction of newer and cheaper models, it's no wonder that AppleInsider is also reporting that Apple's worldwide employee head count has recently shot up to 60,400 from 49,400 in the past year alone.

So, are iPhone sales about to explode exponentially, thanks in part to China?

I'm not totally sure, but it sure is beginning to look that way!

In conclusion, if the Chinese market trends continues to hold, then it's going to be very difficult for any one manufacturer or any one platform to topple the world's largest smart phone supplier, Apple, from its lofty position any time soon, so take that Android!

And that's my 2 cents 4 today, October 27, 2011

iPhone/China Mobile photo via: DigitalTrends

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