China is the second largest market for Apple
Apple’s quarterly financial report says China brought in $4.5 billion, showing “amazing” progress. Tim Cook said that China is becoming the second most profitable country. “China’s progress is amazing,” he said, noting that the region opens up huge opportunities for the company.
He also noted that the company will do everything to support sales growth in the region, including retail stores, online sales, through leading partners (APR – Apple Premium Reseller), third-party channels and advertising. Cook then admitted that he had not seen a country where a middle class interested in buying Apple products was emerging so quickly.
Revenue in the Asia-Pacific region has grown by 139% over the past year, that is, by $6.53 billion. For comparison, the American region and Europe brought in $9.64 billion and $7.39 billion, respectively.
If in 2009 the company’s revenue grew in China by 2%, then this year – by 12%, and in the last quarter – by 16%. Thus, China has become the fastest growing region. China’s total revenue is estimated at $15 billion for the fiscal year, while last year it was $3 billion.
The company recently opened its sixth store in China, choosing Hong Kong for this. In addition, there are 7,000 partner stores in China that sell Apple products.
The company plans to further strengthen its position in China by investing in new retail stores and other projects. Last year, the company stated that it planned to open 25 retail stores in the region in the next few years. In the first quarter of fiscal 2012, Apple plans to open 40 new retail stores, 30 of them are planned to open outside the United States.
Earlier this year, Apple said that it plans to apply the successful experience of China in other strategically important markets. In particular, the company is going to focus on other regions in the coming quarters, including Brazil, Russia and the Middle East.
Revenue in Brazil reached $900 last quarter, an increase of 118% over the past year. According to Tim Cook, Russia looks like a more promising market, while the Middle East opens up huge opportunities for Apple.
