“Apple Inc has a new China growth driver: animated dragons and warring royals,” Cate Cadell reports for Reuters. “As sales of its iPhones slip in a fiercely competitive market, the U.S. company is seeing stronger growth in its services business – from lucrative app sales to iTunes and digital payments. Driving this growth are online games available through its China App Store, such as current hits ‘King of Glory,’ ‘Fantasy Westward Journey’ and ‘Nest of Dragons.’ These apps are taking on increasing significance as Apple looks to revive growth ahead of the 10-year anniversary of its first iPhone later this year.”
“China drove around half the revenue growth for Apple’s App Store last year,” Cadell reports. “‘We had extremely strong services growth during the quarter in China,’ CEO Tim Cook told analysts after the results were announced on Tuesday, adding the segment posted ‘double digit’ growth. Revenue from Apple’s China App Store was more last year than that of China’s other app stores combined, according to app analytics firm App Annie.”
“But, as services sales rise, Apple faces new risks,” Cadell reports. “China is tightening regulation of cyberspace, including online media, live streaming and gaming. On Tuesday, tighter rules were put in place for online news portals and network providers, the latest step in President Xi Jinping’s push to secure the Internet and maintain strict Communist Party control over content.”
Read more in the full article here.
MacDailyNews Take: China is like a box of chocolates…
SEE ALSO:
In bid to improve censorship, China to summon Apple execs to discuss stricter App Store oversight – April 20, 2017
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Apple goes on charm offensive in China with red iPhones and a visit by CEO Tim Cook – March 24, 2017
Apple CEO Tim Cook defends globalization, walks tightrope on privacy in rare public speech in China – March 18, 2017
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Apple removes New York Times apps from App Store in China at behest of Chinese government – January 4, 2017
China dethrones U.S. to become the largest market in the world for iOS App Store revenue – October 20, 2016
Apple to set up second R&D center in China – October 12, 2016
Apple’s first R&D Center in China will develop hardware, employ 500 – September 29, 2016
Apple CEO Cook ‘pretty confident’ of soon resuming movie and book sales in China – May 3, 2016
Apple’s biggest China problem: iPhone’s strong encryption – May 2, 2016
The New Yorker: What Apple has to fear from China – April 30, 2016
Why Carl Icahn is wrong about Apple and China – April 29, 2016
Carl Icahn out of Apple over worries about China’s ‘dictatorship’ government – April 29, 2016
Apple stock falls as Carl Icahn dumps all of his shares – April 29, 2016
Carl Icahn dumps all of his Apple shares; stock drops – April 28, 2016
China could slam door on Apple, says top global risk expert – April 25, 2016
China’s increasing censorship hits Apple, but Apple might punch back – April 22, 2016
China shutters Apple’s online book and movie services – April 22, 2016
Apple CEO Tim Cook joins Robert F. Kennedy Human Rights’ board of directors – April 6, 2016
I am not sure what the headline is talking about as just yesterday Apple published report where they shown data by regions, and China was the only region that was in 21% decline while all other regions of the world have shown growth.
However, there is hope that China will stop falling already the Q3-Q4 of this year.
Sorry but I can’t help myself. Chinese people are the weirdest mofos on the planet.
The most of people seem weird to each other. It makes no sense to single out Chinese.
Nah, Chinese take the cake, at least to Americans.