Roger Fingas
Apple's Chinese revenues soared 99 percent year-over-year in its fiscal fourth quarter, growing from just under $6.3 billion to about $12.5 billion, as CEO Tim Cook sounded optimistic tones about the company's plans for the region.
In a conference call, Cook told analysts and investors that the company plans to continue expanding its retail footprint, with the goal of hitting 40 stores by mid-2016. He expects China will one day become Apple's biggest market.
Cook also made reference to new environmental intiatives in the country, and his recent tour of various Apple Stores. On Oct. 24, the company opened its 25th Chinese outlet in the city of Dalian.
On long-term prospects, the CEO cited forecasts that the middle class — the company's core Chinese demographic — will grow 10 times in the next five years from approximately 50 million.
Apple posted $51.5 billion in total revenue for the fourth quarter, mostly off sales of approximately 48 million iPhones and 5.7 million Macs. iPad sales continued to disappoint, dropping 20 percent year-over-year to 9.8 million.
The Chinese market is second only to the Americas for Apple. Much of the company's success there has been attributed to the iPhone, which is popular in spite of its high cost and challenges from local smartphone makers like Xiaomi and Huawei.
Oliver Haslam
Christine McKee
Malcolm Owen
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Andrew O'Hara
6 Comments
Why make this splinter thread of the main Apple conference call thread? It is just confusing.
All of this flies in the face of analyst’s predictions about China. Cook took some heat when he called in to say China sales were just fine. I’m just reveling in today’s financial reports by Apple. The schadenfreude I feel towards analysts and trolls is all warm and fuzzy. I may just have an extra glass of Pinot Noir tonight.
All of this flies in the face of analyst’s predictions about China. Cook took some heat when he called in to say China sales were just fine. I’m just reveling in today’s financial reports by Apple. The schadenfreude I feel towards analysts and trolls is all warm and fuzzy. I may just have an extra glass of Pinot Noir tonight.
If you really want a good laugh go to ZeroHedge.com and read the doomsday comments that preceded the call.
I wonder if analysts that predicted Apple's doom in China will be fired or ignored.
Of course, last year, the quarter didn't include the release of a new iPhone in China, this year it did, so the 99% isn't quite as surprising as it might have been. But I'll take it! I guess it was only two days of sales, anyway, right?