In the following video, Fool analysts Andrew Tonner and Brendan Byrnes discuss the release of the iPhone 5 in China and what that means for Apple (Nasdaq: AAPL).

China is the world's largest smartphone market, and Apple is right in the middle of this growth story. China already generated nearly 16% of Apple's revenue through the past three quarters and should be a huge growth driver in the years to come.

As consumer income increases, the iPhone has become a luxury good and a status symbol that indicates a buyer "has arrived," Andrew says.

But there are some red flags, and one of them is the iPhone price: around $850. That's a lot of money in China. Still, some of the anecdotal data shows high demand for the phone.

And despite a loss of market share to Android, there is evidence that consumers may have been putting off iPhone purchases in anticipation of the iPhone 5, Andrew says.

Andrew Tonner owns shares of Apple. Brendan Byrnes owns shares of Apple. The Motley Fool owns shares of Apple, China Mobile, and Google. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.