More Evidence That Apple's iPhone 5C Can Succeed in China

According to data from Canalys, Apple (NASDAQ: AAPL  ) captured only about 4.8% of all smartphone shipments in China during the second quarter. Cheap smartphones continued to push Apple's iPhone out of the picture.

This is certainly disappointing news to Apple investors. The country remains the world's largest smartphone market, and Apple's market share is hurting. But can an iPhone 5C change the story? Fool contributor Daniel Sparks thinks so.

In the following video, Daniel tells investors why the Chinese market is so important to Apple. Then he highlights new datafrom Morgan Stanley's Katy Huberty that suggests the combination of an iPhone 5C and a partnership with China Mobile could launch the company to No. 1 in market share in the country.

Want to learn more about Apple? In one of the most ambitious projects in Motley Fool history, the Fool's best investment analysts are on a mission to uncover the crucial factors to watch for every publicly traded company, and a report on Apple was just released. These insights are critical to understanding Apple's future, so access your free report by clicking here now.


Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 25, 2013, at 5:12 PM, Cushing1 wrote:

    The iPhone 5C will lower Apple's gross margins but substantially increase number of iPhone sales and overall revenue. Will have big positive impact if deal is made this year with China Mobile.

  • Report this Comment On August 25, 2013, at 10:15 PM, TMFDanielSparks wrote:

    @Cushing1

    Thanks for the comment. While a low-cost iPhone will certainly hurt the margins of Apple's iPhone line, it may still boost the company's overall gross profit margin. This would happen because the profit margin on the iPhone line is substantially higher than the rest of Apple's product lines -- so even if the low-cost iPhone had lower margins than the premium iPhone, it's margins are still likely higher than the company average. So if sales significantly increase due to the lower price point, then Apple's iPhone line can have a greater influence on the company's overall gross profit margin.

    More on this here: http://www.fool.com/investing/general/2013/07/31/a-bullish-c...

Add your comment.

DocumentId: 2608175, ~/Articles/ArticleHandler.aspx, 4/23/2014 3:50:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement