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Wednesday, July 23, 2014
Apple's Revenue Boosted By China Growth


Apple reported a 6 percent rise in quarterly revenue on Tuesday, boosted by a strong performance in in greater China.

Apple sold 35.2 million iPhones in the June quarter, a rise of about 13 percent, helped by a strong performance in China.

Chief Executive Tim Cook told analysts on a conference call that Apple's Chinese performance was "honestly surprising." Unit iPhone sales jumped about 48 percent and Mac computer sales rose 39 percent in the June quarter, Chief Financial Officer Luca Maestri said in an interview.

Phones sold there by Xiaomi and other rivals appeared to be grabbing market share mainly from other companies that rely on Google's Android software, he added.

"We have a really good runway in front of us with China Mobile," Maestri said, referring to Apple's main carrier partner in the world's No. 2 economy. "Given our numbers in China, it would seem their success is coming from other Android devices."

Apple forecast revenue of $37 billion to $40 billion this quarter. But whether Apple can again produce a revolutionary new product, something it has not done since the iPad in 2010, remains the central question for investors.

Thwe company is expected to make a play for the wearable device market with a smart watch, dubbed iWatch.

Analysts also expect the company to introduce two iPhone versions this fall, including a 5.5-inch model that thrusts Apple into the market for larger-sized phones that rival Samsung helped popularize.



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