Apple exceeds sales expectations in China
Apple exceeded the quarterly sales target set in China. According to the sales report that was released earlier this year, their sales experienced a 57% growth of $21 billion. The sales growth was pushed by the release of the iPhone 12.
Even though China accounted for 20% of Apple's revenue in Q4 of 2020, the growth is a surprise as Apple does not have a good sales record in the Chinese market. Analysts also expected low sales volume because of the effect of the coronavirus pandemic on the Chinese economy.
China is a strategic market for Apple
China is a strategic market for Apple because of the purchasing power of its middle class. The country also has many potential apple users.
Mobile penetration in China is high, as most Chinese people use their phones to shop and carry out banking activities. The company projects that China alone will cover almost 20% of the iPhone upgrades that will be done in the following months.
In a rare move, the CEO of apple granted an interview to a Chinese tech blogger. During the talk, the CEO said a lot of the iPhone's product features were influenced by Chinese consumers. He added that Apple also takes the feedback it received from its Chinese users seriously.
Huawei's recent struggles might have contributed to Apple's growth
Analysts have attributed Apple's straw performance in the Chinese market to the recent troubles faced by Huawei in the US. The American government has banned the phone company from accessing and using top American tech from its product.
More than 8% of Apple smartphones were purchased during a duration of two months in China. A Garner analyst said it's highly likely for Apple to experience "positive growth over the next two quarters," Zimmermann said.
He added that the next generation will be interested in using an Apple smartphone especially because of its 5G technology.