Apple’s growth in China
The progression of Apple’s growth in China has been the blazing topic of discussion since cheaper competing tech products that are alternatives to Apple’s have become available. China’s effort to retain its market share is always on the table.
But if you think that Apple has a sales problem in China, then it’s simply not true. According to the experts, the rolling news that Apple has a China problem does not stand true anymore. Asia’s largest economy is not losing momentum with the tech giant’s products. The appetite for Apple products in China still exists to a large extent.
According to an Apple executive, it has been speculated that China’s sales may decline in the coming quarters, but there is enough mounting evidence that shows China’s demands for Apple products is steady. Other analysts and the Cupertino tech giant are pretty sure about Apple’s growth potential in China and they are not apprehensive about the China market at all.
A Glance at Statistics
Prospects for growth in China are impressive and not only in the last quarter. According to the latest Apple reports, Apple gained greater revenue in the fiscal third year of around $13.23 billion. There has been a rise of 112% from a year ago which was around $6.23 billion. The regions that show the greatest ratio of sales are Taiwan, Hong Kong and Mainland China.
Apple CEO, Tim Cook has added that in regards to expansion plans in China the “pedal is to the metal” with strategic expansion plans in China’s market. He further states that “We remain extremely bullish on China and we’re continuing to invest. Nothing that’s happened has changed our fundamental view that China will be Apple’s largest market at some point in the future.”
If you think that Apple’s prospects for growth in the Chinese market is in jeopardy, then remember that China is the second largest market for Apple products after the U.S. and it will continue to be the same for years to come. Tim Cook also pointed out that App Store revenue in China has doubled in the last quarter. The company is in the process of adding 40 more stores in China over the next 12 years.
Brian Buchwald, Chinese specialist and CEO of the research firm Bomodo also stated that the data is showing slower Chinese spending on luxury goods, but that does not account for the booming of the non-traditional retail markets. One can easily observe Apple’s massive growth in China and it is also true that it is just not occurring in a traditional way.