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.
