“China Mobile (CHL) finally signed a deal with Apple (AAPL). As a result, things are about to heat up in mainland China as Apple’s potential market has grown by an additional 700 million customers, according to the Wall Street Journal,” Alex Cho writes for Seeking Alpha. “The potential upside from this deal could be substantial, but in order to fully appreciate the potential we have to quantify the opportunity properly. This means addressing the geographic income distribution of China and then calculating the amount of market share Apple can gain in that upper-income bracket.”
“Currently, analysts estimate that Apple will grow revenue from $170.1 billion to $180.75 billion between 2013 and 2014,” Cho writes. “Factoring in an extra $10 billion in revenue from the China Mobile deal and we can expect Apple’s revenues to grow to around $190.75 billion for fiscal year 2014.”
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