Greater China Stories October 29, 2015
The old world was a simple one. Apple needed two things to succeed: a well-off market willing to pay a premium price for its products, and a low-cost manufacturing base to build them. The U.S. and Europe provided the former, China the latter.
The idea that China could become Apple’s biggest market in less than a decade would have seemed unimaginable back when the first iPhone went on sale in 2007. It now looks inevitable.
Let’s run the numbers … expand full story
Greater China Stories August 12, 2015
From some recent news reports and analyst pronouncements, we could easily get the impression that the relatively weak Chinese economy poses a major threat to Apple. The argument doing the rounds is that China is where Apple is seeing most of its growth at present, and the Chinese economy is tanking.
It’s absolutely the case that the importance of China to Apple cannot be overstated. Apple does continue to grow its sales in both the Americas and Europe, of course, and there is no suggestion that this is showing any sign of slowing, despite a saturated smartphone market. But worldwide growth of 33% was dwarfed by that seen in China, as one recent graph vividly illustrated.
If Chinese demand for Apple products were indeed to weaken significantly, there is no doubt that this would be a major problem for Apple. But it seems to me that the issue is being substantially over-stated … expand full story
Greater China Stories July 22, 2015
One of the most remarkable numbers revealed yesterday by Apple was that revenue in Greater China – the term used to describe mainland China plus Hong Kong, Macau and Taiwan – more than doubled in the past year. Year-on-year revenue in the region more than doubled, compared to Apple’s already impressive worldwide growth of 33% … expand full story
Greater China Stories May 14, 2015
UBS has matched the upbeat iPhone forecast made last month by KGI for Q2 (Apple’s fiscal Q3), both analysts estimating sales of 51M – well above the consensus expectation of 45M.
KGI’s Ming-Chi Kuo predicts 51.4M, saying that while he believes iPhone sales have peaked, demand will remain higher than the normal seasonal pattern. UBS forecast 51.1M, noting that Apple’s “continued surge” in China is a key factor, where the premium market remains strong despite reports of the country approaching saturation point in smartphones.
Both analysts have strong track-records, Ming-Chi Kuo being our go-to guy for supply-chain rumors, and UBS producing a graph to show the accuracy of its past predictions (below) … expand full story
Greater China Stories October 23, 2014
Tim Cook noted during Monday’s earnings call that Apple was “investing like crazy” in China, but he took the opportunity of his current visit to the country to put a specific number on the company’s retail expansion plans: it will open 25 new Apple Stores in Greater China within the next two years. Greater China includes both Hong Kong and Taiwan.
Speaking to local media, Cook also said that China would in time become Apple’s biggest market, reports the WSJ … expand full story
Greater China Stories January 30, 2014
The changing world map of Apple’s customers in two charts
Apple’s efforts to secure the China Mobile deal were long, drawn out and likely involved rather more negotiation than the company is used to. But if you ever had any doubts as to the importance of those efforts in China, Japan and elsewhere in the Asia-Pacific region, the above two charts, compiled by Fortune, make the reason very clear.
The bad news for Apple is that revenue from its two biggest segments — Europe and the Americas — have begun to contract, not just as a percentage of total revenue, but in dollar terms as well. The good news is that Japan, Asia Pacific and Greater China have so far more than taken up the slack. In Q1 2014, Apple’s combined Asian sales were $17.4 billion, more than Europe ($13 billion) and closing in on the Americas ($20 billion).
