Apple Turns Attention to China for Hot iPhone Market | Koeppel Direct

Apple Turns Attention to China for Hot iPhone Market

apple china iphone market

Recently, Apple announced that sales in great China (including mainland China, Hong Kong and Taiwan), had overcome the United States home market for the very first time.

Although Apple did not release specific numbers, analysts noted that sales in greater China rose 71% to $16.8 billion in the second fiscal quarter compared to the same period in 2014. In addition, revenue in greater China exceeded revenue from Europe for the first time.

Apple And Chinese Sales

Chinese sales were just another feather in Apple’s cap in what was an overall strong quarter. During this quarter, revenue increased 27 percent to $58 billion, which was up from $45.6 billion last year, stated the company in their earnings report. Profits came in at $13.6 billion this year, up from $10.2 million just a year ago.

The sales in greater China are impressive, but not surprising. Apple has been laying the groundwork for large sales figures in China for a long time. The revenue growth in that region of the world has grown steadily over the past several years. In late 2013, Apple locked in a deal to sell iPhones through China Mobile, which is the world’s largest phone carrier. In addition to this strategic move, Apple is also planning on opening 21 initial retail stores in the region, and eventually build that up to 40 retail stores by the middle of 2016.

Apple Is Succeeding In China

“[Apple’s performance in China is] hugely important because it shows that Apple continues to be the only major U.S. tech company that is really succeeding in China, in contrast to Google, Microsoft and Amazon,” said Jan Dawson, an independent technology analyst for Jackdaw Research in a New York Times article.

Overall, Apple sold 61.2 million iPhones in the quarter, and overcame analysts’ estimates of 60 million phones during that period. In the same period last year, Apple sold 43.7 million iPhones.


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