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The Cupertino, Calif.-based company reports its fiscal Q2 results Monday after the market close.
The iPhone contributes about 55% of Apple's revenue, although that figure was a startling 68.61% in the Q1 AAPL earnings. As the iPhone goes, so goes AAPL earnings.
Sales of the iPhone 6 models in China were a big part of Apple's record earnings in Q1. China was responsible for 20% of Apple's total revenue last time.
And as we saw last quarter, the anecdotal evidence points to very strong sales for the iPhone 6.
Several reports have indicated that high Chinese demand for the iPhone carried into the early months of 2015.
Research firm Kantar Worldpanel ComTech said that iPhone market share in China reached an all-time high of 27.6% at the end of February, deep in the middle of the quarter. The surge was enough to unseat Chinese upstart Xiaomi Inc. as that country's no. 1 smartphone vendor.
The iPhone likely also got a boost from the Chinese New Year holiday, which fell on Feb. 19-20.
"Apple has not yet reached its maximum level in China. January and February is the big shopping season leading up to Chinese New Year," Tom Kang, research director at Counterpoint Research, told CNBC in January. "I think the first quarter [of 2015] may be even bigger than the fourth quarter for Apple."
Further evidence for strong iPhone sales in Apple's Q2 comes from the recent earnings beats by Broadcom Corp. (Nasdaq: BRCM) and ARM Holdings Plc. (Nasdaq: ARMH). Broadcom makes chips for the iPhone; Apple pays licensing fees to ARM because its mobile processors are based on ARM's architecture.
But the iPhone won't be the only topic discussed in the Q2 AAPL earnings.
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.