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Think Apple is big now? You ain't seen nothing yet

Tom Kaneshige | July 22, 2010
All signs from Apple's jaw-dropping quarter point to even greater times ahead, says analysts.

Apple's new iPhone 4 was on sale for only three days before the quarter ended, which means many of the iPhones sold were iPhone 3G or 3GS models. Due to the leaked prototypes of the iPhone 4 during the previous quarter, many people no doubt put off purchasing an iPhone. Which, again, makes the iPhone sales numbers astounding. (Apple also says early iPhone 4 demand has already outstripped supply.)

It's unlikely the iPhone 4's antenna issue will hurt sales this coming quarter, say analysts. ChangeWave surveyed 4,028 consumers and found that 16.4 percent plan on buying a smartphone in the next 90 days-which is a "tsunami" of demand in the next quarter, says Paul Carton, vice president of research at ChangeWave. More than half of these buyers said they will choose an iPhone.

Another sign of big things to come: Apple reported that 52 percent of the quarter's revenue came from outside the United States. "In Asia Pacific, Macs grew 73 percent year over year," Cook says. "In China, we grew 144 percent. Korea, 184 percent. In Hong Kong we almost doubled." iPhones lead the smartphone market in mobile-loving Japan.

But Apple is only starting to push into these regions. Apple plans to open a retail store in Hong Kong and recently opened up its second store in China. All tallied, Apple plans to open 25 stores in China and Hong Kong by the end of next year.

"Up until the last few years, Apple has always been [focused] on North America and Western Europe, so that leaves a lot of the planet for them to expand into," says Baker. "There's lots of runway for Apple to continue to grow their revenue."

 

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