By Philip Elmer-DeWitt
October 28, 2015

Remember what happened to Apple when it reported its third-quarter earnings last July?

Despite a sharp increase in global sales and profits, traders the next day wiped $40 billion off Apple’s market value. The reason given by the business press, and repeated by a parade of talking heads on CNBC, was that the company was going to be hit harder than any other by China’s economic collapse.

Wrong.

“Frankly, if I were to shut off my Web and shut off the TV and just look at how many customers are coming into our stores … and looking at sales trends, I wouldn’t know there were any economic issues at all in China,” Cook told analysts Tuesday during the earnings call. “I think that there is a misunderstanding, particularly in the Western world, about China’s economy.”

Rather than drying up, iPhone sales in Greater China soared 120% last quarter. Total Apple revenue in the region, which includes Hong Kong and Taiwan, reached $12.5 billion, up 99%.

Apple still has plenty of room to grow in the region, which Cook believes will soon overtake the Americas ($21.7 billion last quarter) to become the chief engine of the company’s growth.

That might just sustain Apple until the engineers in Cupertino come up with something new.

Follow Philip Elmer-DeWitt on Twitter at @philiped. Read his Apple (AAPL) coverage at fortune.com/ped or subscribe via his RSS feed. You might also want to subscribe to Data Sheet, Fortune’s daily newsletter on the business of technology.

SPONSORED FINANCIAL CONTENT

You May Like

EDIT POST