What's going on?

Apple reported �very strong� iPhone 6S pre-orders over the weekend, leading the stock up 1%. It made a point of saying that demand was particularly strong in China, which has been a concern for investors worried about slowing iPhone sales.

What does this mean?

Apple�s stock sold off more than 20% over the summer, partly on concerns that iPhone sales in China were slowing down. By making this statement, Apple is probably trying to assuage investor concerns regarding both China specifically and iPhone sales generally (more than two-thirds of Apple�s profits come from iPhones).

However, Apple is comparing apples and oranges (pun intended). While it correctly states that it pre-sold more iPhones than at this stage last year, it wasn�t selling into China during this period last year. So it�s more than doubled its available market, and yet is claiming it�s broken a sales record – which is a little misleading.

Why should I care?

1. �It�s a moderate positive� perhaps. But it is probably getting more news coverage, and stock reaction, than it deserves.

2. What will be interesting to watch is how Apple�s new subscriber model could increase iPhone sales. Customers can now pay around $35 per month for the latest iPhone and opt to upgrade it every year. This gives Apple more control over its customers (at the expense of cell phone providers) and will probably increase iPhone sales as customers are more likely to upgrade annually � both of which are probably positives for the stock.