“That single-handedly, we estimate, would drive 20 percent higher iPhone sales next year,” Brian Marshall, an analyst with ISI told Macworld. In the long term, the shift to 3G and 4G networks in China could also lead to more sales, if carriers try to push more long-term contracts with subsidized handsets, similar to the way the U.S. market works. The iPhone X has a manufacturing cost of about $400, an $800 wholesale cost, and a $1,200 retail unsubsidised cost, according to analysts. The impact on export data of just the iPhone could be major. Retailers and shoemakers, including Wal-Mart Inc and Nike Inc, also sounded the alarm on Monday over concerns the plans would result in higher consumer prices. It said in January it planned to pay $55 billion to U.S. suppliers this year. In the meantime, don’t expect Apple to chase after market share with cheaper devices that diverge from its existing product line. The following year, annual revenue jumped to $8.26 billon, and in 2011, Asia Pacific revenue reached $22.5 billion—a more than 600 percent increase in two years. Ronan de Renesse, principal analyst for Analysys Mason, noted that Apple’s version of iTunes in China offers only apps and ebooks, and unlike in the U.S. and elsewhere, Apple can’t simply build on a decade of consumers using iPods. Sales were slow at first; it took over a month for China Unicom to sell 100,000 iPhones—that’s compared to the 1 million units sold across eight other countries on the iPhone 3GS’s opening weekend alone. Apple shipped 61 million iPhones to the United States last year, data from researchers Counterpoint and IHS Markit show, spending $258 on average to make each iPhone 7 and 7 Plus. Over those two explosive years, China grew from 2 percent to 12 percent of Apple’s total earnings, as Chinese customers got caught up in the Apple craze. So despite the differences between China and the United States, the strategy isn’t all that different: Make products for which people are willing to pay, even if the pricing is higher than the competition’s. Alternative app stores abound, including pirated versions of iTunes; and according to analytics firm Umeng, 30 percent of iPhone users in China jailbreak their devices. The economy is considered to be relatively open if a country’s exports are around 15 percent or more of GDP. In the same year, China’s export of goods and services constituted 17.4 percent of GDP. Other suppliers from Taiwan, the United States and Europe also take their portion, while assembly, done by contract manufacturers in China like Foxconn, represents only an estimated 3 to 6 percent of the manufacturing cost. China sales continued to slow in 2013. A 10 percent tariff levied on Chinese electronics imports would slow the growth of U.S. output by $163 billion over the next 10 years, and a 25 percent tariff would slow output by $332 billion, according to the Information Technology & Innovation Foundation. Q What percent of products manufactured in China are exported to the U.S? A Division of NBCUniversal. Apple stock rose more than 2% on the news Thursday, reaching a new all-time high of $309.63. Over the last decade, Apple shipped 373 million iPhones, worth $101 billion by manufacturing value, in the United States, according to researcher StrategyAnalytics. But a look at the competition is telling: Apple’s products are being outsold by less expensive devices. That figure was up from 2.7 million a year earlier, according to the data. That’s never been the company’s philosophy, even in emerging markets. But sales ramped up quickly as Apple added more distribution points in China for its new iPhone, along with a second Apple Store in Shanghai in July 2010. Jared Newman covers personal technology from his remote Cincinnati outpost. Got a confidential news tip? “That is an important reason why U.S.-China trade friction will cause ‘collateral damage,’ especially in other Asian economies,” he said, adding that in value added terms, the U.S. trade deficit with China was only $239 billion last year, 36 percent lower than the headline number. At first, in every quarter after 2010, Apple’s Asia Pacific revenue at least doubled year-over-year. China is a key growth area for Apple, which has struggled against low-cost phone makers that sell Android phones. In the first three quarters, China revenue was $19.7 billion—just a 15 percent increase over the previous year. “The cost of ramping up iTunes and enforcing the content lock-in in China would be very high for Apple and would not guarantee results,” de Renesse said. When the iPhone 4s launched in China in January 2012, it created such a frenzy that one Beijing store was forced to close, and SWAT teams had to step in to keep the peace. Apple’s biggest spike came in the first quarter, when the launch of the iPhone 5 helped boost revenues by 67.4 percent; but in the quarters that followed, earnings increased by just 7.5 percent and then fell by 13.9 percent. China makes $8.46 from an iPhone. As Apple embarks on its 2014 fiscal year, we take a look at the company’s past successes and failures there, as well as what to expect in the future. Data is a real-time snapshot *Data is delayed at least 15 minutes. Copyright © 2020 IDG Communications, Inc. According to November data from Counterpoint Research, Apple had just 8 percent of the market share in China during the third quarter of 2019, down from 9 percent … Chinese customers visit an Apple Store in Hong Kong. He also publishes two newsletters, Advisorator for tech advice and Cord Cutter Weekly for help with ditching cable or satellite TV. Nicole Peng, research director for China at Canalys, said that Apple was seen as a status symbol for the wealthy before, but over time the company established itself as an “affordable luxury” brand. He believes Apple can find other ways to boost sales and be successful in China even with a small percentage of the market. The iPhone’s contribution to U.S. trade deficits is almost certain to have grown sharply alongside higher retail prices and shipments. Still, we can get a sense of how Apple has performed by piecing together the company’s sales figures, public statements, and milestones over the past few years. I was designed by Apple in California.”. Apple likely enjoys its position in China as a respected, international brand, and the price premium it commands. Apple stock rose more than 2% on the news Thursday, reaching a new all-time high of $309.63 when markets closed. Those days of jaw-dropping growth didn’t last forever. See here for a complete list of exchanges and delays. There’s also been a lot of chatter about a possible deal between Apple and China Mobile, the country’s largest wireless carrier; according to ISI, the carrier has more than 700 million subscribers, 180 million of which are 3G subscribers. And even as China becomes a bigger source of Apple revenues, it is still in many ways a country of unrealized potential and unique challenges. Assembled in China." "If you look at our results, our shortfall is over 100 percent from iPhone and it's primarily in greater China," Apple CEO Tim Cook told CNBC's Josh Lipton in an interview in January 2019. Note: When you purchase something after clicking links in our articles, we may earn a small commission. But a closer look at the Apple smartphone reveals how the headline figure is distorted. The customers who do want to use iTunes face roadblocks: As Bloomberg Businessweek points out, service can be slow because servers aren’t based in China, and Apple only added the ability to pay with local currency a couple of years ago. (GRAPHIC: U.S. imports from China - tmsnrt.rs/2FMsz1Q). Forty-five U.S. trade associations representing some of the largest U.S. companies urged the president on Sunday not to impose tariffs on China, warning it would be “particularly harmful” to the U.S. economy and consumers. Read our, Learn more about Macworld's Digital Edition. © 2020 CNBC LLC. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.