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The Secret Ingredient For Apple’s Growth

It’s hardly a secret that Apple’s upcoming earnings report will be huge. Analysts have high expectations, due to the much-anticipated release of the iPhone 6. One thing investors might be missing is how important China is to Apple. Apple is experiencing rapid growth in China. In fact, China was Apple's fastest-growing geographic region in fiscal 2014 with 17% revenue growth. Apple's China segment is now a $30 billion business annually, which makes it the third-largest geographic region for Apple behind only the Americas and Europe.

Growth in China going forward will be huge. Eric Pfanner and Brian X. Chen at The New York Times wrote "An agreement with China Mobile could, at least initially, give Apple a big lift into the vast Chinese market, analysts say, increasing its worldwide sales." Apple expects China to eventually become the company’s biggest geographic market, and it’s easy to see why. Last year, Apple struck a partnership with China Mobile, which is the largest wireless carrier in the world with more than 800 million subscribers. Apple has only been able to sell its products to China Mobile customers for one year. Now, the ability to bring all these customers under Apple's products and services umbrella opens up a massive opportunity for continued growth in China.