Apple Inc. (AAPL)’s Down in China, but Far From Out

Morgan Stanley (NYSE:MS) analyst Katy Huberty said last month that Apple Inc. (NASDAQ:AAPL) could add $2.4 billion in iPhone revenue and triple its customer base in China if the company debuted an iPhone “Mini”. No one knows whether or not Apple Inc. (NASDAQ:AAPL) will release a cheaper iPhone in China, but we do know that Apple Inc. (NASDAQ:AAPL) won’t let an opportunity like China Mobile pass by. With Apple Inc. (NASDAQ:AAPL) focusing much of its attention on the country, a deal with China Mobile is the next logical step to building its presence in China.

Taking it slow
Some investors may not like the pace Apple’s moving at with China Mobile, but the Apple Inc. (NASDAQ:AAPL) is content to let some market share slip, while trying to make deals that will bring in the biggest profits. Investors should pay close attention to Apple’s growth in the country, as well as iPhone demand from Chinese consumers. Apple Inc. (NASDAQ:AAPL) is a status symbol in the country, and if it can tap into that with China Mobile, then it could bring huge rewards for the company — and patient investors.

CEO Tim Cook’s frequent visits to China, and his meetings with China Mobile, should be an encouraging sign that Apple’s pursuit of the country is just getting started. Many Western markets are reaching high-end smartphone saturation, but China still has a long way to go. Even if Apple Inc. (NASDAQ:AAPL) doesn’t release a cheaper iPhone for the Chinese masses, a deal with China Mobile may be enough to boost profits even higher and take a larger piece of the the market share.

The article Apple’s Down in China, but Far From Out originally appeared on Fool.com.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and China Mobile.

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