Apple marching east - China becomes the company's second largest market

Apple CEO Tim Cook has more than once referred to China as one of the company's key markets. He spent years in talks with China Mobile, trying to solidify a deal that would have the operator support and sell iPhones. Apple had a small presence in China before, through carriers China Unicom and China Telecom, but seeing as China Mobile is considered the largest mobile provider in the world, one could easily guess why Apple was so interested in being in business with it.

So, it looks like all the strides have paid off – from the record sales of iPhone 5s and 5c early last year, to the crazy demand for iPhone 6 and 6 Plus units in the past few months, China has easily surpassed Europe to become Cupertino's second largest market. According to the second quarter report that came out of the fruity company earlier, the company scored a revenue of $58 billion, of which $16.2 billion was made in China alone – that's a little more than a third – marking a 71% year-over-year increase for the region. In comparison, Europe's part in reaching the aforementioned revenue is $12.2 billion.


FEATURED VIDEO

25 Comments

1. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Apple took the premium priced section of China as expected and Xiaomi the rest sections. I see a bigger and bigger decline for Samsung in China this year.

2. seven7dust unregistered

china is gone for samsung , have noticed from the chinese people I meet they really really love Apple branded products ,even more than others, it's crazy actually. China probably will have more Apple fanboys/fangirls than any other country in the future. looking good for Apple maybe there's hope for a mid-range iPhone in the future to seal the deal in China.

13. NexusX

Posts: 613; Member since: May 16, 2013

if you buy a samsung phone or any other android phones in china, you'd have go through many call centers to claim warranty and get product support. if you have an iphone, you just need to walk into an apple store in china. like western consumers, chinese buy apple products for a peace of mind

20. gaming64 unregistered

That's because Samsung never had proper stores unlike Apple.

10. NexusX

Posts: 613; Member since: May 16, 2013

xiaomi is not the only one, oppo huawei, lenovo, vivo, tcl(alcatel), iuni, etc and hundreds of other smaller companies. only thing that samsung's got going for it is the brand

24. waddup121 unregistered

China been with Apple for a long time now. I gues Samsung has to say goodbye :(

3. TheBiz

Posts: 232; Member since: Apr 13, 2015

if apple releases midrange iphone it would sell like hell because i know people who buy iphone 5c just because its a iphone

8. KENTOZ

Posts: 86; Member since: Apr 03, 2015

So true

5. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Im looking forward Apple migrate HQ to Beijing and appoint Jack Ma as new CEO USA is doomed

11. Pinocchio

Posts: 141; Member since: Apr 14, 2015

Doomed in YOUR FACE stupid troll! Oh, don't forget to solve the underpaid wage and suicide cases for your slave workers in Foxconn, they were broadcasted on BBC not too long ago. It's quite embarrassing.

16. gaming64 unregistered

They arent even Apple employees yet you consider them one?

18. Pinocchio

Posts: 141; Member since: Apr 14, 2015

Of course, they aren't. But I meant to respond to that stupid Chinese nationalistic who always bashes the US. He's full of crap and joke that he trying to be a patriot on a tech site.

6. Retrospective1

Posts: 45; Member since: Feb 24, 2015

Sad China feel the need to follow americans. This is the fad Apple has created. This is the one of many silly reason people are buying it. Everyone has it so it's "Cool" I thought that too until i questioned my "tech. spec and price" My friend came from China last year and told me "having Apple products in China shows your wealth" really? Same when i here "Android is for broke people.Apple for rich" I still like Apple Macs but for me I'm currently rocking Note 4 and S6.

15. gaming64 unregistered

This doesnt concern colonial mentality, man. It's either they buy it because of interest or resale value or so they could just sell it second hand and make it more expensive. Believe me, I've seen some retailers selling a 4th gen iPad with a $999 price tag. WTF

19. seven7dust unregistered

tech specs don't tell the whole story , otherwise why even review phones you can just look at numbers and buy phones. We need to stop obsessing about numbers , resolutions , Megapixels are all silly numbers. iPhones are praised for their use of quality components by displaymate , DXOmark , Anandtech and many more reputed sites with experts. for example look at LG vs Apple , Lg supplies displays to Apple yet uses inferior displays on their phones , the LG G3 had a washed out display while iPhone has much more brightness and color saturation. when Apple buys displays/Cameras they tend to use the better quality ones, go check reviews of any iPhone they usually praise the camera and display brightness plus performance. stop listening to android fanboys , iPhones have good components, just not big numbers. Specs rant end

21. gaming64 unregistered

Alright now you are talking blind now. Specs matter if it is well implemented with hardware. Remember that Apple is the one designing both hardware and software so that gives an advantage over OEMs.

22. seven7dust unregistered

thats exactly what I meant ! people keep saying 2012 specs like it's true , it's just silly.

7. pendragon0202

Posts: 164; Member since: Feb 23, 2015

It is sad, but an Asian culture that I accept. Asians love to show off and will go for expensive stuff, even when the product just has more "brand" and little substance is there. After the European crisis, I heard that one of major market that keeps those LV's Hermes, and expensive wines and cognacs float are the Asian consumers. Even in the land of Samsung and LG, the best selling phone was neither but iPhone last year. If you ask any normal Joe in the streets of Beijing, Mumbai, Shanghai, Bangkok, or Manila, they might be holding Samsung, Micromax, Xiaomi or Lenovo in their hands, but when asked which phone they will buy when they become rich, I am sure the majority of them will say it is iphone. They would care less about the specs or the OS. They crave for the social myth, Apple somehow successfully created - that owners of their devices are hip and rich. For the dynamic societies with huge population, Asians will do anything to appear upper class citizen. I don't think it will be an easy task for any Android OEM's to defeat this myth any time soon. No double edge screen or best specs in the world can match the shiny apple logo on the back of their phones. Hell, I 've even seen some people prefer to go for 4S rather than buying the newest and best from Xiaomi or Huawei at the similar price. I bet Apple can make similar spec phones for the next four years and they will still be popular in Asia. Yes apple brand is that powerful to Asians. Sad but it is how it goes in the East.

9. NexusX

Posts: 613; Member since: May 16, 2013

you are wrong, chinese consumers buy apple because of apple make good products, good product support and peace of mind, which is important because for the longest time, international conglomerates have neglected chinese consumers in post purchase services, including some of the biggest asian conglomerates like samsung and sony. These companies have long treated chinese as second-class consumers,

12. NexusX

Posts: 613; Member since: May 16, 2013

hopefully samsung can improve their post purchase service and product support with their more expensive phones, otherwise they'd lose to the chinese phone makers for sure

14. gaming64 unregistered

Even Chinese OEM's are getting their butts kicked. LOL

23. Sovat_fc

Posts: 224; Member since: Aug 30, 2014

I'm from Bangkok, Thailand. Everyone of my coworkers uses iPhone, and one of them told me once that they'd bought one because he saw everyone in the company used it. WTF I assume that people buy an iPhone because of its name or because of being afraid to be looked down by others. They don't care about its spec or price, and they even spend their two-month salary for this toy. Sad for them!!!!!

25. darkkjedii

Posts: 31293; Member since: Feb 05, 2011

Thanx for the story, I mean info.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.