This is Mac OSKIN.

Can the iPhone six line surprise? Just how big can Apple Watch be? And Apple does the courtroom

shuffle. It's Tuesday, December 16, 2014. I'm Ken Ray and this is news from MacoS. Ken, brought to you by yours

truly and supported by I-Chart magazine, putting Apple and Tech News in focus, E-Y-E-Chart

magazine, available for iOS Newsstand now. For years people argued that iPhone would have a hard time taking hold in China because most people couldn't afford it.

Now it appears that enough people are finding a way to afford it to silence those arguments.

Barons had a note on Monday from Jeffries and Company analyst

Sundeep Bajikar.

His note is made of both optimism and worry. On the optimism side he says his firm sees near-term

iPhone six-driven strength in Apple earnings which he believes analysts are

underestimating. On the worry side Apple needs to make more compelling cloud services

or it runs the risk of being a hardware-only play.

Quoting his note, our discussions in China suggest a broad range of consumers across various income levels

are paying up for iPhone six over cheaper domestic alternatives.

However, our checks also suggest iPhone six adoption is not necessarily translating into commensurate growth

and software content services distributed through the iTunes store.

Consistent with data previously published by China TMT analyst Cynthia Meng, our checks indicate that most

popular cloud services in China are provided by companies other than Google or Apple.

In fact, Chinese smartphone makers such as

Shao Me, Lenobo, and TCL appear to be investing in cloud services of

their own as they fear partnerships with larger cloud providers like

Tencent or Baidu might result in loss of control of their individual hardware businesses

...