China sees ?amazing? growth, becomes second largest Apple market
During Apple's quarterly earnings call on Tuesday, the company detailed record sales of $4.5 billion in China for the September quarter, highlighting "amazing" progress in the region and continued opportunities among its burgeoning middle class.
Apple CEO Tim Cook said that China has become Apple?s second largest country in terms of revenue. ?The China progress has been amazing,? he said, concluding that the area shows ?enormous opportunity for the company.?
He added that the Cupertino, Calif., company will do everything it?s doing in the United States to sustain growth in the region, with strategies such as retail stores, online, APR channel, 3rd party channel and advertising. Cook further acknowledged that he has never seen a country with so many people moving into the middle class interested in buying Apple products.
Revenue in the Asia Pacific region grew by 139 percent year over year, or $6.53 billion. By comparison, the Americas and Europe generated $9.64 billion and $7.39 billion, respectively.
In China, revenue rose from 2 percent in 2009 to 12 percent this year and 16 percent this quarter, thus making China ?the fastest growing region by far.? Total revenue for China amounted to $15 billion for fiscal year 2011 compared to $3 billion in the previous year. Apple last quarter reported $3.8 billion in revenue in the region.
Line waiting to enter IFC Mall Apple Store in Hong Kong. Credit: Gary Allen/ifoAppleStore via Flickr.
The company recently opened its sixth store in the Greater China region, an impressive flagship location situated in Hong Kong. Combined, the existing five retail stores in mainland China accounted for the most store traffic during the fourth quarter. Apple reported a record of 77.5 million visitors for its 357 stores in the September quarter with revenues averaging at $10.7 million per store.
On top of the company's official retail stores, there are 7,000 points of sale in Greater China for the iPhone.
Apple is looking to further consolidate its position in China by investing in more stores and other unspecified projects. The company reportedly said last year that it plans to open 25 retail stores in the region within the next few years. Apple is set to open 40 new retail stores globally in the first quarter of fiscal year 2012, with 75 percent of them planned for countries outside the U.S.
Earlier this year, the iPhone maker indicated plans to learn from its successes in China as it turns its attention to other emerging markets. As such, the company has said it will also focus on other regions in the following quarters including Brazil, Russia and the Middle East.
Revenue in Brazil topped $900 million last quarter, up 118 percent year over year. According to Cook, Russia is looking "more promising," while the Middle East poses "significant opportunities" for Apple.
Apple CEO Tim Cook said that China has become Apple?s second largest country in terms of revenue. ?The China progress has been amazing,? he said, concluding that the area shows ?enormous opportunity for the company.?
He added that the Cupertino, Calif., company will do everything it?s doing in the United States to sustain growth in the region, with strategies such as retail stores, online, APR channel, 3rd party channel and advertising. Cook further acknowledged that he has never seen a country with so many people moving into the middle class interested in buying Apple products.
Revenue in the Asia Pacific region grew by 139 percent year over year, or $6.53 billion. By comparison, the Americas and Europe generated $9.64 billion and $7.39 billion, respectively.
In China, revenue rose from 2 percent in 2009 to 12 percent this year and 16 percent this quarter, thus making China ?the fastest growing region by far.? Total revenue for China amounted to $15 billion for fiscal year 2011 compared to $3 billion in the previous year. Apple last quarter reported $3.8 billion in revenue in the region.
Line waiting to enter IFC Mall Apple Store in Hong Kong. Credit: Gary Allen/ifoAppleStore via Flickr.
The company recently opened its sixth store in the Greater China region, an impressive flagship location situated in Hong Kong. Combined, the existing five retail stores in mainland China accounted for the most store traffic during the fourth quarter. Apple reported a record of 77.5 million visitors for its 357 stores in the September quarter with revenues averaging at $10.7 million per store.
On top of the company's official retail stores, there are 7,000 points of sale in Greater China for the iPhone.
Apple is looking to further consolidate its position in China by investing in more stores and other unspecified projects. The company reportedly said last year that it plans to open 25 retail stores in the region within the next few years. Apple is set to open 40 new retail stores globally in the first quarter of fiscal year 2012, with 75 percent of them planned for countries outside the U.S.
Earlier this year, the iPhone maker indicated plans to learn from its successes in China as it turns its attention to other emerging markets. As such, the company has said it will also focus on other regions in the following quarters including Brazil, Russia and the Middle East.
Revenue in Brazil topped $900 million last quarter, up 118 percent year over year. According to Cook, Russia is looking "more promising," while the Middle East poses "significant opportunities" for Apple.
Comments
Just for reference - this explains why Apple's overseas cash is growing so quickly. There's no way for them to easily bring that cash into the U.S. without paying taxes.
Are you suggesting this is good or bad... or just noting a fact?
Somebody crunch the numbers and tell us what a whole generation of Chinese with rapidly rising incomes means for Apple's revenues and profits.
Are you suggesting this is good or bad... or just noting a fact?
I'm just posting a fact. People in another thread were complaining that Apple has so much cash overseas. That's an inevitable result of the fact that they sell so much product overseas.
I'm just posting a fact. People in another thread were complaining that Apple has so much cash overseas. That's an inevitable result of the fact that they sell so much product overseas.
Correct.
I don't think people realize how big of a monster the China market is going to be for Apple. The Chinese are probably the most brand-conscious consumers in the world and Apple is the most accessible of the top-line aspirational brands. Not that many people can afford a Mercedes Benz or a BMW, but a Mac, iPad or iPhone? Hell, yeah!
Somebody crunch the numbers and tell us what a whole generation of Chinese with rapidly rising incomes means for Apple's revenues and profits.
The reason why Chinese can not afford a BMW or Mercedes Benz is because the price of the same car is doubled or tripled in China compares to US or Europe...
Where are all the naysayers proclaiming only poor people live in China?
Where are the numbers that break down where the sales are?
Taiwan, Hong Kong and Macao are included in "Greater China."
Nonetheless the market in China has grown amazingly.
Where are all the naysayers proclaiming only poor people live in China?
Because they're ignorant.
Yes, a heck of a lot of poor people live in China, but we're talking about a country with a population of over a billion.
As of 2009:
The U.S.: 307,006,550 people.
CHINA: 1,331,460,000 people, and growing at twice the rate that the U.S. is.
Great to hear. So many people here a while back were stating 'for a fact' that hardly anyone in China could afford anything Apple made.
It's not that they can't afford it. Their population is so huge, that their 1% upper-class population is like 60% of our population. Ok that was a huge exaggeration, but you get the point. We hear about the sweat shops and low wages because the low-class population is huge. The good jobs are already filled, leaving the poorer people to fight for sweat shop jobs. They can't just have kids and get on welfare like people can here in the states.
It's safe to state that there are more rich people in china than there are in the united states. There are also exponentially more poor people there than there are here.
Just for reference - this explains why Apple's overseas cash is growing so quickly. There's no way for them to easily bring that cash into the U.S. without paying taxes.
I'd be all for a tax holiday for US Companies to repatriate stranded assets . . . But only if:
1.) they are legally based in the US (not the Caymans, etc.)
2.) they have paid some minimum percentage of their revenues as taxes over the last 5 years
and
3.) only on money that they will then pay to stockholders in dividends.
(This would probably be of no use to Google.)
There's some PR bullshit going on here...
When Apple first released the iPhone in China a few years back, sales were dismal, now we're supposed to believe China is the leading market for Apple? Complete BS.
Because they're ignorant.
Yes, a heck of a lot of poor people live in China, but we're talking about a country with a population of over a billion.
As of 2009:
The U.S.: 307,006,550 people.
CHINA: 1,331,460,000 people, and growing at twice the rate that the U.S. is.
Yes! And bigger *is* better, as is obvious to anyone.
The reason why Chinese can not afford a BMW or Mercedes Benz is because the price of the same car is doubled or tripled in China compares to US or Europe...
I suggest you try and understand BMW's own perspective on this issue (happy to give you MB's too, if you like): http://www.bmwgroup.com/e/0_0_www_bm...S_20110517.pdf
A few days ago there was a report about the price of a iPhone in China going for $1k US on the grey market. If the grey market is charging such a high price then how is it that regular Apple stores are doing do well?
There's some PR bullshit going on here...
When Apple first released the iPhone in China a few years back, sales were dismal, now we're supposed to believe China is the leading market for Apple? Complete BS.
Nobody said it was they leading market. It is the third largest market expected to become the second largest market. But why is that surprising? Over 1.3 billion people and including Taiwan, and Hong Kong. I imagine the "greater China" market includes more people than the US, Europe, Canada and Australia combined.
3.) only on money that they will then pay to stockholders in dividends.
Why would you want to make the companies do something so incredibly tax-inefficient?
You might as well not bother wasting time trying to implement such a policy, since few would bother.
PS: Apple does not pay dividends either.