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At first, in every quarter after 2010, Apple’s Asia Pacific revenue at least doubled year-over-year. The iPhone X has a manufacturing cost of about $400, an $800 wholesale cost, and a $1,200 retail unsubsidised cost, according to analysts. According to November data from Counterpoint Research, Apple had just 8 percent of the market share in China during the third quarter of 2019, down from 9 percent during the same time period in 2018. And even as China becomes a bigger source of Apple revenues, it is still in many ways a country of unrealized potential and unique challenges. Note: When you purchase something after clicking links in our articles, we may earn a small commission. Retailers and shoemakers, including Wal-Mart Inc and Nike Inc, also sounded the alarm on Monday over concerns the plans would result in higher consumer prices. That’s also about 22 percent of the $70 billion in cell phones and household goods the U.S. imported from China. But a look at the competition is telling: Apple’s products are being outsold by less expensive devices. That’s never been the company’s philosophy, even in emerging markets. Our Standards: The Thomson Reuters Trust Principles. Siri, Apple’s “digital assistant,” reflects the challenge of knowing exactly where the value of an iPhone comes from - even if it’s put together in China. "This news only furthers our positive bullish thesis on Apple heading into 2020 given our recent positive Asia checks, 5G technology/upgrades around the corner, and our belief that China will continue this positive upward trajectory with renewed growth and share gains on the heels of an iPhone 11 product cycle which the skeptics continue to underestimate," he said. China makes $8.46 from an iPhone. In the first three quarters, China revenue was $19.7 billion—just a 15 percent increase over the previous year. Sales were slow at first; it took over a month for China Unicom to sell 100,000 iPhones—that’s compared to the 1 million units sold across eight other countries on the iPhone 3GS’s opening weekend alone. Apple's iPhone sales in China rose more than 18% last month, according to CNBC calculations using government data published by the China Academy of Information and Communications Technology, a government think tank. China sales continued to slow in 2013. Although Apple and China Mobile have negotiated for years, rumors suggest that a deal is imminent this time. For Apple, the real action began in late 2009, when the iPhone 3GS officially went on sale through China Unicom, which, despite an impressive 140 million subscribers, is only the country’s second-largest wireless carrier. In the fourth quarter of 2013, the company’s revenue in the region rebounded slightly, bringing in $5.7 billion. It’s also significant, as Barclays analyst Ben Reitzes pointed out during Apple’s fourth-quarter earnings call, that Apple was one of the few tech companies to actually grow in China during the quarter. Q What percent of products manufactured in China are exported to the U.S? But since then, Apple’s share has tapered, and the launch of the iPhone 5 late last year brought only a 0.6 percent boost, bringing its share to 8.5 percent of China’s smartphone sales. In the same year, China’s export of goods and services constituted 17.4 percent of GDP. © 2020 CNBC LLC. It said in January it planned to pay $55 billion to U.S. suppliers this year. Although the 5c isn’t much different from the iPhone 5 on the inside, it does have some of the appeal of a new product, and it’s reportedly being sold at a discount by some retailers in China, just as it is in the United States. Assembled in China." Got a confidential news tip? The impact on export data of just the iPhone could be major. In Q1 2019 Apple reported revenue from China of $13.17 billion, down $5 billion from the same time period in 2018. That’s up 6 percent year-over-year and 24 percent over the previous quarter. In the long term, the shift to 3G and 4G networks in China could also lead to more sales, if carriers try to push more long-term contracts with subsidized handsets, similar to the way the U.S. market works. Just go to any public place and look around at all the iPhones. And when the iPhone 4 went on sale in October 2010, Apple hit the 100,000 sales mark in China within just four days. Those days of jaw-dropping growth didn’t last forever. “That single-handedly, we estimate, would drive 20 percent higher iPhone sales next year,” Brian Marshall, an analyst with ISI told Macworld. In those early days, the iPhone had a few challenges working against it: It was an expensive and hard-to-find product, and it was crippled due to local regulations that prohibited it from using Wi-Fi. Forty-five U.S. trade associations representing some of the largest U.S. companies urged the president on Sunday not to impose tariffs on China, warning it would be “particularly harmful” to the U.S. economy and consumers. In the third quarter of 2013, Apple’s share fell to 4.8 percent—its lowest level in three years. In Apple’s third-quarter earnings call, CEO Tim Cook blamed the slower sales partly on economic factors. (Apple’s first store, in Beijing, had opened two years earlier.) But in 2012, Apple’s revenues doubled only in the second quarter, when China Telecom, the country’s third-largest carrier, began selling the iPhone 4s. Those product releases are looking to bolster Apple’s bottom line in China. This was the first real foot in the door for Apple: The iPod and the Mac had never been strong sellers in China, and previous iPhone models were only imported or sold on the gray market. (GRAPHIC: U.S. imports from China - tmsnrt.rs/2FMsz1Q). Apple shipped 3.2 million iPhones in China through December, according to CNBC calculations using data from the China Academy of Information and Communications Technology. "It's clear that the economy began to slow there for the second half and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy." “The cost of ramping up iTunes and enforcing the content lock-in in China would be very high for Apple and would not guarantee results,” de Renesse said.

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