Apple registered record sales of $4.5 billion in China, or 16% of total sales, in the company’s most recent quarter.
In fiscal year 2011, revenues in China grew to $13 billion, or 13% of total sales, up from about $3 billion, or 2% of total sales, in 2009. As CEO Tim Cook said in the earnings call, this is Apple’s fastest growing region by far.
Since the iPhone accounts for over half of Apple’s stock, according to the Trefis analysis, and provided that Apple andChina Mobile will soon sign a carrier contract giving the company access to its around 650 million subscribers, this has the ability to move the stock as Chinese buyers snap up new phones. Currently,China Unicom is the exclusive mobile service provider of the iPhone in China.
Opening new stores & new carriers will increase penetration
Apple opened 30 new stores in the latest quarter, of which only 9 were in the United States. The Hong Kong store opened in the last weekend of the quarter and set a company record for the highest opening day sales.
Greater China now has 6 Apple stores. Given the U.S. as a model, Apple retail stores provide a way to better engage customers and sell more phones in this key market as it opens new stores.
For mainland China, China Unicom has been the exclusive carrier so far, which has been a boon to the mobile operator. However, China Mobile and Apple appear very close to reaching a deal on its plans to carry the phone. The carrier is already selling and promoting the iPhone around Beijing in the hopes of signing up customers to its Wi-Fi plan in anticipation of a pending deal.
In fiscal year 2011, revenues in China grew to $13 billion, or 13% of total sales, up from about $3 billion, or 2% of total sales, in 2009. As CEO Tim Cook said in the earnings call, this is Apple’s fastest growing region by far.
Since the iPhone accounts for over half of Apple’s stock, according to the Trefis analysis, and provided that Apple andChina Mobile will soon sign a carrier contract giving the company access to its around 650 million subscribers, this has the ability to move the stock as Chinese buyers snap up new phones. Currently,China Unicom is the exclusive mobile service provider of the iPhone in China.
Opening new stores & new carriers will increase penetration
Apple opened 30 new stores in the latest quarter, of which only 9 were in the United States. The Hong Kong store opened in the last weekend of the quarter and set a company record for the highest opening day sales.
Greater China now has 6 Apple stores. Given the U.S. as a model, Apple retail stores provide a way to better engage customers and sell more phones in this key market as it opens new stores.
For mainland China, China Unicom has been the exclusive carrier so far, which has been a boon to the mobile operator. However, China Mobile and Apple appear very close to reaching a deal on its plans to carry the phone. The carrier is already selling and promoting the iPhone around Beijing in the hopes of signing up customers to its Wi-Fi plan in anticipation of a pending deal.
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