“In the last two years, Apple has rung up nearly $105B in revenue in Greater China — with a very large portion of those sales to new iPhone customers,” AAPL Tree writes for Medium. “So while these iPhone owners may not upgrade ‘for a while,’ they most certainly will, as Apple’s Services growth trends show, buy apps, iCloud services, AppleCare plans and Apple Music subscriptions.”
“So even when unit sales are cooling, the China iPhone user installed base (which grew 34% year-on-year ) continues to grow and spend apace,” AAPL Tree writes. “And since so many millions of customers were added in just the past 7–8 fiscal quarters (a ‘mere’ $60B in revenue could easily translate to around 90M iPhones sold), there’s a separate, ‘invisible’ demand curve, irrespective of hardware seasonality, demonstrating the strong health of the ‘Apple ecosystem’ in this revenue geography.”
AAPL Tree writes, “All of this data taken together, in my home gamer’s opinion, proves that Apple continues to be ascendant in Greater China and that if nothing else, Apple is more than capable of ‘biding its time,’ quite profitably, until the apparently quite satisfied and still-growing installed base in Greater China is ready for their next smartphone. Which will be, much more likely than not, another iPhone.”
Much more, including insightful graphs, in the full article here.
MacDailyNews Take: All together now: It’s the ecosystem, stupid!