Buy Apple Inc. just for the iPhone in China News?


The Wall Street Journal is reporting Apple Inc. (NASDAQ:AAPL) will sell its iPhone in China starting in October.  But with AAPL shares at $169, is the China iPhone deal already baked into the share price or is the next stop $200 a share?

The news of the iPhone to sell in China is all over the net, China boasts the world's largest mobile market, with some 687 million subscribers - roughly three times the size of the US market - and analysts predict that Apple could be on-course to shift almost three million of the gadgets in China by the end of 2011.

Since launching the device two years ago, Apple claims it has sold 26 million iPhones around the world, but the majority - almost half - of sales remain in the US. Industry watcher IDC reckons a mere seven percent of sales come from the Asia Pacific region and 25 percent from Europe.

And Apple desperately needs to boost its presence in China. The firm currently has less than one percent of the PC market, selling a meager 36,000 computers in the last quarter, according to IDC figures.

So with shares at $169 to you buy just because of the iPhone China news?  

No.  Wait and let the analysts confirm then identify the margins, until the Street moves with any new target prices on Apple shares, there's no need to jump. Since July the latest round of estimates have been very strong, let's not jump of the band waggon until the iPhone in China news settles down.

18-Aug-09 Reiterated RBC Capital Mkts Outperform $190 → $250
22-Jul-09 Upgrade Canaccord Adams Hold → Buy  
22-Jul-09 Reiterated Kaufman Bros Buy $176 → $184
22-Jul-09 Reiterated Deutsche Securities Buy $150 → $225
20-Jul-09 Reiterated RBC Capital Mkts Outperform $165 → $170




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