The iPhone 6S and 6S Plus hit shelves worldwide this week, but Malaysia has to wait until November for Apple’s latest offerings. This is the first time China is part of the opening weekend roll-out. Here’s a look at how important China has become to Apple.
Apple China revenues more than doubled during the fiscal third quarter (FQ3’15), as compared to the same quarter during the year earlier (FQ3’14). Apple China revenues grew from $6.3 billion in FQ3’14 to $13.2 billion in FQ3’15. Apple China revenue growth was driven primarily by growth of iPhone sales in China. Apple iPhone unit sales grew 87% yoy in China during FQ3’15.
China continues to outperform other regions in revenue growth. During the FQ3’15, Apple China revenues grew by 112% yoy. During the same quarter, Rest of Asia Pacific revenues grew 26% yoy, Europe revenues grew 19% yoy, Americas revenues grew 15% yoy, and Japan revenues grew 9% yoy.
Apple China Revenue Share
As a result of China strong revenue growth during the first three quarters of FY’15, it has overtaken Europe to become the second largest region in terms of revenues.
Apple had $46.2 billion total revenues from China during the first nine months of FY’15. During the same period, the total revenues from Europe were $39.8 billion. During the first nine months of FY’15, Apple generated over one-fourth of its total revenues from China.
Apple China Future
Apple remains very bullish on China and continues to invest there. Apple plans to nearly double the number of retail stores in China from 22 in July 2015 to 40 by middle of 2016. Apple believes that China can become their largest market at some point in future.
There is no doubt that if an economic slowdown happens in China, then Apple will be one of the US companies that will get most impacted.
But, so far, Apple has the strong momentum in China. It is expected to drive Apple China revenue growth over the next few quarters.
When we refer to China in this post, we are referring to Greater China. It includes China, Hong Kong, and Taiwan.