In the video below, Fool analyst Andrew Tonner discusses sales of the iPhone 5 in China and what investors should expect.
Apple (NASDAQ:AAPL) sold off to the tune of about 3.5% last week after anecdotal evidence, such as the lack of long lines, suggested sluggish sales for the iPhone 5 in China. But after the weekend, Apple announced it had actually sold more than 2 million of the handsets.
So what are investors to make of this story? Andrew says that estimates showed a substantial decrease in market share for Apple, which typically holds 18% to 20% of the overall smartphone market there. But some say that is due to consumers delaying the purchase of iPhones in anticipation of the iPhone 5.
If Apple can sell another 3 million to 4 million units of the $850 iPhone 5, it could generate some extra $3 billion in revenue, Andrew says.
Andrew sees Apple selling a total of around 47 million or 48 million devices during the quarter. He says investors should remain bullish on the stock.
Andrew Tonner owns shares of Apple. The Motley Fool owns shares of Apple and China Mobile. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.