Editor’s note: Jack Narcotta is an analyst with Technology Business Research. He takes a look inside Apple’s (Nasdaq: AAPL) latest earnings report, which was issued Monday.

HAMPTON, N.H. - Apple’s brand strength will protect its margins and its carefully-crafted emerging markets strategy will position it for consistent growth in price-conscious China, the world’s largest mobile device market.

Apple’s results have been fueled by the iPhone and iPad for the past several years, and in those segments, the company is facing more competition than ever before. Samsung is pressuring the company at the high end, while Lenovo, Samsung, Huawei, ZTE and Xiaomi are blocking Apple from reclaiming market share by entering the low end of the market.

With mixed consumer sentiment towards pricing for Apple’s “entry level” smartphone – the iPhone 5c – and the iPad mini, the high ASP of Apple devices was a factor in slowing growth in 2013 in developed markets such as the U.S. and Europe.

Additionally, the higher prices of the iPhone and iPad hampered international expansion, especially as more mobile revenue comes from cost-sensitive emerging markets like China, where inexpensive phones from Android OEMs flood the market with inexpensive devices.

However, Apple’s 4Q13 results illustrate the degree to which the company can leverage its brand to overcome objections by price-conscious consumers and counter new high-end devices from its Android-based rivals, especially Samsung.

In 4Q13 Apple’s revenue climbed 5.7% year-to-year to a record $57.6 billion in revenue, fueled by record shipments of 51 million iPhones and 26 million iPads, as well as a near-record 4.8 million Mac PCs.

Targeting China

With consumers continuing to exhibit strong loyalty for Apple’s devices, TBR believes the combination of customer demand and lofty profits – Apple posted $21.8 billion and $17.5 billion in gross and operating profits in 4Q13, respectively – will enable Apple to counter a global slowdown in smartphone sales and stoke demand for its products in new regions such as China and India.

The appeal of the iPhone in China and Japan is helping offset revenue and market share challenges in the U.S. and Europe.

While TBR believes the holiday shopping season in the U.S. and Europe was the primary catalyst behind 4Q13’s record shipments, quarterly APAC revenue climbed 15.3% year-to-year to a record $12.5 billion, nearly 22% of the company’s total revenue, illustrates that the company’s carefully curated relationships with large carriers are paying off.

TBR believes operators such as NTT DoCoMo, Softbank, KDDI – as well as the nascent relationship with China Mobile, which began on January 17, 2014 – are poised to become important contributors to Apple’s emerging markets strategy.

With demand from the Americas, Apple’s largest market at 35% of total revenue, cooling as that market approaches saturation – revenue from the Americas declined 1.2% annually in 4Q13 after climbing just 0.9% year-to-year in 3Q13 – TBR believes fervent demand from China and Japan consumers for mobile devices will propel APAC revenues higher through 2014, allowing the region to match the Americas’ revenue contribution.

Revenue from the Middle East/Africa, Central/Eastern Europe, China and Japan climbed 65%, 115%, 20% and 40%, respectively, illustrating the influence these regions will have on Apple’s overall revenue growth in 2014.

(C) TBR