Is iTunes becoming more important for Apple than China?

“Apple released their 2013 fiscal third quarter earnings this past Tuesday, and within Apple’s report a surprisingly strong number emerged – iTunes revenue grew to $4 billion USD,” Mark Reschke writes for T-GAAP.

“The iTunes figure was stronger than analysts had expected, and year over year sales growth climbed a solid 25%,” Reschke writes. “At the same time Apple’s China sales drew in a disappointing $4.9 billion.”

Reschke writes, “During Apple’s conference call, CEO Tim Cook pointed to iTunes and services frequently, while carrying a muted tone on China. Several factors in China may limit Apple growth in the future, not the least of which may be the communist government themselves, repeatedly hammering Apple via their state run media during the last two quarters. Propaganda or not, the China’s continued negative coverage appears to be taking a toll on Apple’s sales in the region. iTunes content sales for Apple is a different story.”

Read more in the full article here.

Related article:
Apple’s iTunes Store generated $3.9 billion in Q3, up 25% YOY – July 23, 2013

8 Comments

  1. The problem for any company wanting to expand into China is that China heavily favors its own, home-grown companies. China will always put barriers in front of any foreign company to make it more difficult to operate in China. They don’t want competition, they want to steal our technology, IP and ideas and copy them. So while China is enticing, Apple will be much better off developing a well-rounded ecosystem (hardware, iTunes & services, auto integration, living room, etc.) than putting a ton of energy and money into China.

  2. If you think China has a massive economy and culture now, wait until you see them you see them post-communism – that’s really the only major force holding this people back. Learning Chinese now is a smart way to prepare for the future.

        1. Hillary – the lesbian wife of the serial adulter who destroyed the semi peace of the Middle East

          Elizabeth Warren – claimed to be an Indian to get her job at Harvard. Big liar.

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