“As all Apple investors know, China is a very important market for the company. Apple generated $18.4 billion in revenue in Greater China, 24% of its total revenue (27% of its operating income) and an increase of 14% year over year,” Chuck Jones writes for Seeking Alpha. “Without China’s revenue, the rest of the company would have reported a 1.6% decrease year over year versus a 1.7% increase.”
“It is too bad that Apple didn’t introduce a larger screen iPhone earlier,” Jones writes. “The larger screen iPhone 6 kicked off tremendous growth in China starting in the December 2014 quarter. Each quarter in fiscal 2015, Apple’s China business saw at least a 70% increase in revenue year over year culminating with a 112% increase in the June 2015 quarter. For fiscal 2015, China’s revenue grew 84% to $58.7 billion and was 25% of Apple’s total revenue. When you remove China’s revenue from Apple’s total revenue, the Rest of the World’s (ROW) revenue increased 16% (about 22% in constant currency).”
“While Apple’s Chinese revenue growth has slowed down from its year-over-year growth of 70% or higher each quarter in fiscal 2015 to 14% in the December quarter (17% in constant currency), it is still a major growth driver. It has also generated the majority of AAPL’s operating income for each of the past four quarters,” Jones writes. “While there is always the risk that Apple’s China business could succumb to Android smartphones from the Kantar and Strategy Analytics data, it looks like the company is on solid footing in China. Additionally, AAPL is expanding its retail store count from 28 to 40 by the summer of 2017 which will also help bolster its position along with more Chinese entering the middle class.”
Read more in the full article here.
MacDailyNews Take: Hence the reason why Cook has been and remains so focused on China.
SEE ALSO:
Apple Pay to take on Tencent’s WeChat Wallet and Alipay in China – December 18, 2015
Half of iPhone 6/Plus buyers in China were first-time buyers last quarter – December 14, 2015
This may be bigger to Apple than new iPhones: Apple revenue in China has risen by 112 percent in the past year – October 27, 2015