China is currently seeing a rise in affluence and changing consumer preferences. This is reportedly instigating a rapid surge in revenues with more and more people buying Apple products. The growth can be seen from the following figures. In the fiscal year of 2009, only 2% of Apple’s sales took place in China. The next year however, this number rose to 12% and then as high as 16% in the last quarter. This is an annual rise of 270% and in the last 12 months, the nation has yielded $13bn for Apple. When you measure this against the $3bn figure a year earlier, you can see that this has been a significant rise.
New CEO of Apple, Tim Cook, has said that he has never seen a country that has this many people who buy Apple products. The rise in technology in many different countries all over the world is apparent, with many people owning mobile phones they purchased from the O2 website, or carrying laptops around with them. However, the specificity with which residents of China are going for Apple products is interesting. Cook has recognised that there are more and more people in this country who are rising to the middle class and aspiring to own a product that Apple has made.
Apple are now very eager to keep this success going and are placing additional investment here. Being the world’s most highly populated nation, China provides a very valuable opportunity for Apple to grow even larger than it is now. Apple has recently revealed its first branded retail branch in Hong Kong, as well as one in Shanghai. There are now more than 200 Apple Premium Resellers or chains that only sell Apple goods, as well as around 7,000 points of sale. An official e-commerce platform went live at the end of 2010 and by the looks of it, there is more expansion to come.
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October 26th, 2011 | |
Posted in Mobile |