How significant is the Chinese market for Apple in terms of overall revenue and growth potential?
The Chinese market is highly significant for Apple in terms of overall revenue and growth potential. China is currently Apple's third largest market, contributing 18% of total revenue in the fiscal second quarter of 2024. Greater China, which includes mainland China, Taiwan, Hong Kong, and Singapore, brought in $16.37 billion in the March quarter, representing an 8% year-over-year (YoY) fall. However, this still topped estimates of $15.87 billion with a YoY decrease of 11%.
China has been a major driver of Apple's growth over the past decade, with sales in the region growing more than 20-fold within five years, peaking at $58.7 billion in 2015 before gradually falling back to $40.3 billion in 2020. The slump was short-lived, as sales surged back almost 70% in 2021 and have exceeded $70 billion in each of the past two years. This growth potential is particularly notable given that China is the world's largest smartphone market.
Apple's promotions and pricing strategies in China have helped the company to maintain its strong position in the market. In January 2024, Apple lowered the prices of the iPhone 15 series in China ahead of the Chinese New Year holiday in February. In May, Apple's official store at Alibaba Group's Tmall platform launched a limited-time discounting campaign, offering discounts up to RMB2,050 (US$318) for iPhone 15 shoppers.
In addition to its importance for Apple's revenue, China is also a key market for the company's future growth potential. The recent talks between Apple and China Mobile to roll out Apple TV+ in China demonstrate the company's efforts to expand its services in the Chinese market. If the deal were to go through, Apple TV+ would be the first U.S. streaming service to be available in China, one of the biggest markets globally.
/1080x390/uploads/cover_image/2024/06/06/1717656205_w_8cccf47cf8d1be0f281b.jpg)
Meituan Announces Organizational Overhaul | TMTPost Exclusive
