re: iPhone 5 Will Save The World: Analysts
China these days buys political quiet by allowing its citizens to be consumers of the latest and greatest toys. Initially it doesn't care where they products come from if they keep the people happy and there are profits within China from selling them. However anything with staying power they will imitate and eventually they will manipulate things to block out foreign competition, undercut prices and dump, etc. Exhibit A is solar panels.
In that context it's clear that Apple initially dominated because there were no comparable offerings made in China. Now there are. You know that the govt is manipulating things behind the scenes to give an artificial lift to Lenovo, Huawei, etc.
Does this hurt Apple? Absolutely yes. Long term it also hurts Samsung, HTC, etc. Partly leaders waste no love on South Korea. So it's not irrelevant. But it's also not something that Apple can solve by revolutionizing the iPhone. The quantum leap for that category of device occurred with iPhones 1 and 2. Now there's creativity around the edges. Apple is in the hunt with lots of others and China is not a place they can win.
In free market economies, things are different of course. Apple will not be the player it once was unless it has a trick up its sleeve that none of us has anticipated. But for a company with such a small panel of devices Apple does phenomenal business and what's more their per unit profit is second to none. Early days to be crying wolf.
Apple's real mission is to be working behind the scenes on the next revolutionary device. We assume that's happening; let's hope we're right.