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iPhone sales soar in China

After a slow start, iPhone sales are soaring in China.

During yesterday's financial conference call, Apple COO Tim Cook answered questions about the iPhone's performance in what he calls "greater China" (China, Hong Kong and Taiwan), uncharacteristically sharing some numbers:

"The revenue, we have never released this number before but I will do this in this particular case, through the first half of the fiscal year that we just completed for the six month period our revenue from greater China was almost $1.3 billion and this is up over 200% year-over-year."

The folks at Brainstrom Tech did some math and figured that represented 2.1 million iPhones sold (give or take) in a 6-month span -- a number that beat Wall Street's Q2 2010 estimates by 25% to 30%.

Initially, the iPhone failed to thrive in China due in part to an active black market and the Golden Shield Project (GSP), which censors certain Internet content. To comply with the GSP, devices that include wireless Internet have been required to use China's own WAPI standard. Meeting that requirement forced Apple to re-design the iPhone for China.

Fortunately for Chinese customers, carriers and Apple, that ruling was recently changed to allow or Wi-Fi capable iPhones. Late last year China Unicom launched a 46-city roadshow tour promoting the iPhone.

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After a slow start, iPhone sales are soaring in China. During yesterday's financial conference call, Apple COO Tim Cook answered questions...
 

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cld9731

First (as discussed elsewhere), the 1.3 billion number I represents total Apple sales (including computers, iPods, iTouches and iPads). Second, the term Greater China seems to skirt a key issue - how many iPhones did Apple sell to mainland China (as opposed to Taiwan & Hong Kong) ?

April 22 2010 at 2:43 AM Report abuse rate up rate down Reply
Anonymous

You should also realize that putting in a "WAPI" cheap instead of a "802.11" chip and writing a driver for it -- and I'm pretty sure the standard is very, very similar to 802.11, since most Chinese technologies are knock-offs or at least based on, existing technologies (such as their MIPS CPUs...) is not the same thing as using a completely different baseband/radio chip, writing firmware for it, tying it into your OS (GPS, activation, lock/unlock, signal logic, power concerns) and designing the required antennas and internal layout to support them are not the same thing. You don't "resdesign" the iPhone for WAPI, but you probably do for CDMA.

April 21 2010 at 2:00 PM Report abuse rate up rate down Reply
Roberto

As many dollars as China has people!

April 21 2010 at 1:02 PM Report abuse rate up rate down Reply
igotzzoom

Lynyrd, actually it makes sense that Apple has held off on creating a CDMA iPhone. Believe me, nobody would like to see the iPhone on "Big Red" as much as I would. But since they're going to be switching over to LTE (commonly referred to as 4G) it would make more sense from a business standpoint to invest in a technology platform that has many years, possibly decades, ahead of it. As opposed to CDMA, which from all I've read, will be effectively phased out between the next 3-5 years.

In terms of why Apple completely re-designed the iPhone for the Chinese market...two words...growth prospects. The U.S. is essentially a saturated and mature cell market. Nearly everyone that wants one has one (a cell phone, not necessarily an iPhone). Whereas China is a rapidly-growing consumer market with LOTS of upside growth potential. Add to that the Chinese government's bureaucratic and often inscrutable regulatory process, and Apple probably decided it was better to re-design the iPhone and seize the opportunity to get into the market, rather than taking the chance and hoping that the government would change its cellular standards to meet the iPhone. Just my $0.02.

April 21 2010 at 12:57 PM Report abuse rate up rate down Reply
lynyrd65

So wait let me get this straight, apple was willing to completely redesign the iphone to use proprietary standars to sell it to a country with a low demand for high-end phone but they weren't willing to make a cdma iphone for a network and a country that has been begging for it for years. Ok apple you really do think differently.

April 21 2010 at 12:39 PM Report abuse rate up rate down Reply
4 replies to lynyrd65's comment
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