Updated from 11:13 a.m. EST to provide comments from hedge fund analyst in the third paragraph.

NEW YORK ( TheStreet) -- Apple ( AAPL) has demonstrated that it doesn't need help selling iPads, but it still received some very beneficial news in that regard on Monday.

The company finally settled its long-running dispute with Proview Technology over the iPad name in China. As part of the agreement, Apple has agreed to pay $60 million to Proview.

China is an increasingly important market to Apple, with iPhone sales more than doubling in the country during Apple's most recent quarter. "There's clearly tons of potential here," said one hedge fund analyst who declined to be named. "It iPad should be a proportionate opportunity to the iPhone."

Settling the lawsuit with Proview sets Apple up to continue its enormous growth in mainland China. "They Apple have massive opportunity there for all their products. The Chinese love all the Apple products," said Ironfire Capital founder Eric Jackson in an email to TheStreet. Jackson is long on Apple's stock.

Apple's strong presence in China could hurt low-cost competitors such as Google's ( GOOG) Android-based tablets, and potentially the Microsoft ( MSFT) Surface, as these companies seek to take away market share from Apple.

The Cupertino, Calif.-based company sold 11.8 million iPads in its second quarter, despite having the new iPad available for only a few weeks. The opportunity that now presents itself for Apple in China with a refreshed iPad is huge, says Topeka Capital Markets analyst Brian White in a research report.

Apple generated 20% of its second-quarter sales from Greater China (Mainland China, Hong Kong and Taiwan), a gain of three times from a year ago, White noted.

"China remains an important part of Apple's growth strategy and the company's brand continues to expand in the country," White wrote in his report. He also believes that if Apple launches an iPad Mini, this could prove "very popular in China." White rates Apple shares at buy with a $1,111 price target.

A lower priced iPad or iPad Mini by Apple could potentially help the company's presence in China grow that much stronger, says Channing Smith, portfolio manager at Capital Advisors Growth Fund.

"We believe both the iPhone and iPad will be more successful in the coming years as price points come down. The vast majority of Chinese consumer demand falls in the $100 to $299 price-point range, which presents a challenge for Apple's premium-priced products, especially since they are going toe-to-toe against lower cost local vendors like Huawei and Lenovo," Smith said in an email with TheStreet.

The importance of China to Apple is only going to grow, and Apple recognizes that. Recently it added several new languages for Siri including Mandarin and Cantonese, as it brought Siri's presence to the iPad. CEO Tim Cook has recently said Apple has expanded "a lot" in China, but there's plenty of room for it to be a greater opportunity.

Shares of Apple were rising 1.23% to $591.17 in mid afternoon action.

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-- Written by Chris Ciaccia in New York

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