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A big reason for the anticipated rise in Apple's smartphone sales is the popularity of the iPhone 6 and 6 Plus in China. The country surpassed the US to become Apple's biggest iPhone market in the March quarter, and it topped Europe as the second-biggest revenue generator overall after the Americas. China also was the only region detailed in Apple's earnings report in April, where second-quarter sales topped those of the first quarter, thanks to a boost from the Chinese New Year in February. But China could become less of a sure bet for Apple if the region's economy slows and demand starts to dry up. Earlier this month, Gartner revised its annual growth forecast for smartphones downward, in large part because of the cool-down in the region.
"We have witnessed fewer and fewer first-time buyers in China, a sign that the mobile-phone market there is reaching saturation," Gartner analyst Annette Zimmermann said in a research note, It's been grl pwr / girl power quote iphone case a strong run for China -- and companies selling products in that country, China became the world's largest smartphone market in 2011 and now is home to more than half a billion smartphone users, The introduction of larger-screen phones with the 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus (versus the 4-inch iPhone 5S) helped Apple gain a bigger presence in the country, as did a January 2014 agreement with China Mobile, the world's largest wireless carrier, with more than 800 million subscribers..
Analysts are sure to look for commentary from CEO Tim Cook on how China's economy could affect Apple and what that means for iPhone sales. Apple's smartphone line has made up more than two-thirds of the company's total revenue for the last couple of quarters. Apple didn't have a comment ahead of its report Tuesday. "A slowing Chinese economy is a risk for Apple," UBS analyst Steven Milunovich noted. But UBS economists expect the Chinese stock market turmoil to have a limited impact on the region's overall economy. "We think Apple is OK for now, but we will watch the situation closely," Milunovich said.
There also could be questions about the upcoming iPhones, likely called the iPhone 6S and 6S Plus, The new devices -- likely launching in September -- are expected to feature similar designs to the iPhone 6 and 6 Plus, which follows Apple's trend over the past generations of its popular smartphone, The off-year "S" model typically adds features that don't dramatically alter the overall design -- such as the Siri digital voice assistant, added to the iPhone 4S , or the TouchID fingerprint reader, which debuted with the iPhone 5S , Apple may include grl pwr / girl power quote iphone case its ForceTouch technology in the new devices, allowing the iPhones to differentiate between hard and light taps on the display..
Apple plans to build more iPhones than ever before for the new models coming this fall, according to a report from The Wall Street Journal earlier this month. The company has asked suppliers in Asia to make 85 million to 90 million units of two new iPhones with 4.7-inch and 5.5-inch screens for release later this year, the publication said. Last year, Apple had asked suppliers to initially build 70 million to 80 million units of its iPhone 6 and 6 Plus smartphones -- which, up to now, have been the best-selling devices Apple has ever created.
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