For a long time, Apple did not get it right in China. Business analyst Shaun Rein notes that now the American giant is doing things right and ships more smartphones to China, even more than Xiaomi. From Mercury News.
One gusher of growth the company has yet to fully tap is the Chinese market. The company raked in $16.1 billion in revenue there during the quarter, up 70 percent year over year. For the first time, Apple shipped more smartphones in China than any other manufacturer during the fourth quarter of last year, according to research firm Canalys. But Apple still has ample room to grow in the country, with smartphone market share of about 12 percent, according to Counterpoint Research.
Shaun Rein, managing director of China Market Research Group, said Apple has come a long way in China, where it previously had struggled to compete without larger phones.
“Now with iPhone 6 Plus, they have become the must-have item,” he said. “It’s really quite remarkable how much people are adopting it.”
Apple CFO Luca Maestri said the company is on track to have 40 stores in greater China by mid-2016.
But Apple will need to step up the pace of store openings to make the most of the opportunity and give as much attention to the Chinese market as it gives to the U.S., Rein said.
“Apple is succeeding in spite of itself in China because they have bad distribution,” he said. “It’s bigger, and people are willing to pay more.”
Analysts will also be closely watching the sales for other Apple products such as the Apple Watch, the company’s first brand-new product since the iPad.
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