This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple's Decade: The iPhone Taps China

Editor's note: This is the sixth excerpt of an e-book on Apple by Jason Schwarz, an analyst at Lone Peak Asset Management in Westlake Village, Calif. Here are Part 1, Part 2, Part 3, Part 4 and Part 5.

The third catalyst to contribute to Apple (AAPL) $500 is Asia expansion. The company took top honors in The Wall Street Journal's Asia 200 survey in 2009, despite reportedly having just 1.6% of the personal computer share in the region and only 0.6% of the total mobile-phone market.

When broken down by attribute, Apple consistently appeared among the top five companies ranked by consumers in Asia. For long-term vision, Apple was second, fifth for quality, fourth for corporate reputation and second for innovation.

In a revealing interview with Kai-Fu Lee, president of Google (GOOG) China, PBS' Margaret Warner extracted some valuable information regarding the Chinese Internet explosion. Lee predicts that a quarter of China's 1.3 billion people will be online by 2009. They're not just more numerous than in the United States. They're different. The average American user is 45 while the average Chinese user is 25.

Even though the Chinese economy is helping to increase the size of the middle class, these young users still don't own their own computers. Internet cafes are open 24 hours a day, and for most of those 24 hours, they are packed with young customers engrossed in games, muovies, music videos, and chat rooms.

The Chinese are craving an inexpensive Internet device to further enable their access to information, entertainment and communication. Perhaps an alternative to the Western world's use of laptop computers will fuel a revolutionary wave of Chinese gadget obsession.

Before the government intervened with the China Mobile (CHL) monopoly, the company reported 574 million mobile subscribers back in March 2008; the number of mobile subscribers is expected to grow to 738 million in 2010. To put that number in perspective, consider that the entire U.S. population is just over 300 million. Capturing the Chinese market is the prize of all prizes.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs