Apple (AAPL) iPhone To Launch In China With 1,000 Stores

Apple (NASDAQ:AAPL) will launch the iPhone in China with China Unicom (NYSE:CHU) on October 30 with “1,000 points of sale,” according to a transcription of the company’s earnings call done by Seeking Alpha.

Apple commented on China Unicom’s plans. “They’ve announced the plans and prices that they’ll have for the device and for the service. There’s a very wide range here on the post-paid side from $18 a month all the way up to $85, $100 a month. At the higher price point an individual is able to actually get the device for free and it goes up as you go down the ARPU, as it would in most countries.”

Apple sold 7.4 million iPhone worldwide in the September quarter and both the holidays and sales in China should push that number up sharply. Analysts expect improved Q4 iPhone sales, but just as they were surprised by the strength of handset sales last quarter, it seems that they may be in for another one in the current period.

Apple’s progress with the iPhone in China and elsewhere makes the company’s forecast for the last quarter of the year laughable. For the December quarter, the company expects revenue of $11.3 billion to $11.6 billion, with profits of $1.70-$1.78 a share. Those numbers are improbable because there is no indication of any slowing in the growth of Macs or iPhones.

Apple will knock the cover off the ball again in the final quarter of the calendar year, and China could play a significant part in that.

Douglas A. McIntyre