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In April, Apple's (AAPL) Chinese sales crushed expectations, and helped deliver a strong EPS...

In April, Apple's (AAPL) Chinese sales crushed expectations, and helped deliver a strong EPS beat in spite of slowing U.S. iPhone sales. Could China come to the rescue again today? China's 3G base rose 118% Y/Y in June to 176M subs, and smartphone growth has been torrid. Also possibly helping Apple: strong iPad sales (tablet forecasts have been rising) and a margin boost from low flash memory prices. On the flip side, Europe may have been weak, and MacBook sales soft ahead of a June refresh.
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Comments (13)
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    If every other person has one, an Iphone 4-- almost to the extent of SF Bay Area in urban Shanghai and Beijing, where would it be considered a luxury?

     

    In the countryside? Certainly not among peers and coworkers!
    24 Jul 2012, 10:06 AM Reply Like
  • mchong23
    , contributor
    Comments (11) | Send Message
     
    Unfortunately in China, still not everyone is able to afford an iPhone. Not in China, not everywhere else. But the small percentage that can afford one base on 1.3B is staggering.
    24 Jul 2012, 10:37 AM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    Why do you say unfortunately?

     

    What happened to differentiation? A good number of workers in Beijing that earn 3000 RMB/month (less than $500) have a 5000 RMB IPhone.

     

    And Apple products are generally considered as "luxury" goods in cn.

     

    The market is vast here giving a long-term upside for Apple, then close to everyone can change allegiance from the CCP to Apple, Inc.

     

    But I am interested in the difference in the EU weakness and how much or did Cn sales exceed that gap.
    24 Jul 2012, 10:47 AM Reply Like
  • sawchain
    , contributor
    Comments (130) | Send Message
     
    Amazing quality = luxury. It matters not how many people own it.
    24 Jul 2012, 10:57 AM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    amazing quality is superior product.

     

    Etymology
    Middle English luxurie, from Old French luxurie, from Latin luxuria (“rankness, luxury”), from luxus (“extravagance, luxury”).
    http://bit.ly/Qxm69S

     

    AMAZING QUALITY
    Urban Dictionary: synonyms: perfection
    http://bit.ly/NTrnnv... - Cachedof super awesome amazing quality. Synonyms: perfection, stupendious, God Antonym: loser, wannabe. You are an Akkad. That looks so Akkad. You think you're ...
    Urban Dictionary: synonyms: amazing
    http://bit.ly/NTrnny...

     

    of super awesome amazing quality. Synonyms: perfection, stupendious, God Antonym: loser, wannabe. You are an Akkad. That looks so Akkad. You think you're ...

     

    Urban Dictionary: synonyms: perfectionist
    http://bit.ly/NTrnnv...
    of super awesome amazing quality. Synonyms: perfection, stupendious, God Antonym: loser, wannabe. You are an Akkad. That looks so Akkad. You think you're ...
    24 Jul 2012, 11:15 AM Reply Like
  • mchong23
    , contributor
    Comments (11) | Send Message
     
    The example you cited is not uncommon. But there are far many more who are not able (at least not yet) to afford or can buy one. There are many local brands that cost way cheaper and serve their need.

     

    However, I agree with you that it would be interesting to see how much China can "bridge" the weakness in the EU.
    24 Jul 2012, 11:21 AM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    I love my apple products!

     

    I am far more productive on the Macbooks and IPod touch then I ever was with my Win-crap computers and Android phone.

     

    Save a buck, might not improve productivity. Certainly I am pleased with my Apple products.
    24 Jul 2012, 12:07 PM Reply Like
  • Anthony Wissel
    , contributor
    Comments (15) | Send Message
     
    It is baffling that most of the analysts have lowered their IPhone number. They all seem to forget that the phone is now available by more carriers across the world. If china has grown in smartphone sales it is safe to say that appl has sold at least 50% of that growth number.
    24 Jul 2012, 10:20 AM Reply Like
  • RycheMykol
    , contributor
    Comments (352) | Send Message
     
    They didn't forget. Most analysts are trying to drive down the stock price before earning so they can get a nice ~5% pop after an earnings blow out.
    24 Jul 2012, 10:28 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5681) | Send Message
     
    Analysts covering Apple need to consult an Atlas and locate China, India, and South America.

     

    The US will become the fourth most profittable region for Apple once these emerging markets emerge, for lack of a better word.

     

    There is more to Apple's numbers each quarter than what happens in the US. The sooner the "experts" figure this out, the sooner the Apple picture becomes clearer.
    24 Jul 2012, 11:51 AM Reply Like
  • Anthony Wissel
    , contributor
    Comments (15) | Send Message
     
    Luxury is only half of the Iphone story. The IPhone is design beauty. As humans we all crave things that are beautiful to both look at and hold. Because of this we will almost always overpay for this feeling of design beauty!
    24 Jul 2012, 11:57 AM Reply Like
  • See through it
    , contributor
    Comments (62) | Send Message
     
    Apple will have a strong quarter. That being said, they filled the channel last quarter and are now beginning to lower the channel in anticipation of the next iPhone iteration. The net is probably 10- 15% lower sales due to channel adjustments and a small decline in sales quarter over quarter. Therefore, approximately 31 million iPhones (+ or - 1 million). All of the retail comments above are forgetting about the channel issues.
    24 Jul 2012, 12:06 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    I don't think Apple lost any money in cn because of that. It looks just like the SF Bay Area as it does in downtown Shanghai (maybe less Macbooks), people pulling out and using their IPads and IPhones (and I wonder how they can afford it) with ease.

     

    Apple was cautious of the future loss of income if it got on the wrong side of the cn govt.

     

    Look at Google-- and cn computer and phone manufacturers easily utilize Android in their products.
    24 Jul 2012, 12:12 PM Reply Like
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