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.