Apple Readies IPhone For China Launch
Apple Inc. is getting closer to clearing the hurdles to start selling iPhones in China, one of the last major phone markets Apple has yet to tap.
The release of the iPhone in China could turbocharge overseas growth for what is already Apple's fastest-growing product. China is the world's largest mobile market by subscribers, with some 687 million subscribers. That compares with more than 270 million subscribers in the U.S.
The iPhone hasn't sold as well in some markets as in the U.S. In Japan, for example, the Apple brand isn't as strong, and regular mobile phones offer many of the same features.
In China, however, touch screens are hot, and there are already a number of popular models that have no keypads. The Apple name has value as a status symbol, and Internet usage through cellphones is increasing.
Toni Sacconaghi, an analyst with Sanford C. Bernstein Co., calculates Apple can sell 2.9 million iPhones in China by the end of 2011. 'Ultimately, it will probably be the fastest-growing overseas market,' he said.
But Apple faces competition from other smart phones that are set to launch in China in coming months. And analysts say the iPhone has struggled in overseas markets, where it has faced more competition from rivals like Nokia Corp., the world's largest mobile phone maker.
'Apple's brand is strongest at home, where the competition is weaker,' said Edward Synder, an analyst for San Francisco-based Charter Equity Research.
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