China, soon to be Apple’s number one market?

by bold-lichterman

Steve Jobs saw it above all as a country of production, Tim Cook was betting on consumption. China is taking an increasingly significant place in Apple’s revenues, a trend that had already been noticed in the company’s previous financial publications at Apple, and that its results for the second quarter of its fiscal year.

29% of turnover achieved in China

The most populous country in the world has become Apple’s second-largest market, relegating Europe to third place. The Cupertino company has indeed achieved in “Greater China” (which includes both Hong Kong and Taiwan) $ 16.8 billion in sales over the quarter, more than $ 12.2 billion gathered on the Old Continent.

And if it is still less than in America ($ 21.3 billion), Apple’s sales growth in China suggests a potential crossroads in the coming years. Year on year, Apple’s sales in China grew 71% in China, compared to 19% in the Americas.

Chinese brands gain momentum

In the end, over the quarter, Apple achieved 36.7% of its sales in America, 28.9% in China and 21% in Europe. At issue: the rise of the Chinese middle class who wants to equip themselves with smartphones, while the rates of equipment are higher in Europe and North America. ” I have never seen so many people enter the middle class as in China, and this is where most of our sales will now take place. “, said Tim Cook, after publication of the results. Apple sold more iPhones in China than in the United States during the period.

Moreover, it is the Chinese smartphone market as a whole that is in full swing. And Chinese brands, generally positioned on the entry and mid-range, have also benefited. Thus, a TrendForce study published in January 2015 underlined their rise in importance: 6 of the world’s top 10 smartphone brands were Chinese in terms of sales in 2014, and these crystallized 40% of global sales, according to the research firm. Among the companies that rose the most were Huawei and Xiaomi. The latter has passed 60 million units sold last year. The company was only created in 2010.