- "China and Japan helped Apple beat estimates and set revenue records for the March quarter.The market has cheered Apple's results for the latest quarter, sending the stock up 8%".
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"China Mobile (CHL) carries around 780 million subscribers on its network, and so the fanfare was somewhat warranted when the deal has hatched with Apple and the iPhone launched back in January of this year. And as we peruse the earnings and pore over the call, it is easy to see that China and Japan are proving to be solid revenue growth drivers".
"Widely expected to add around 12 million iPhone sales for Apple this year, China Mobile helped push Apple's iPhone numbers past 43 million for the March quarter. Revenues for the quarter, as compared to last year, are up 17%. Total revenue from China alone approached $10 billion, almost 1/4th of Apple's entire revenue for the quarter. China's growth represented 13% growth year-over-year, with Japan clocking in at 26% growth over the same time frame. CEO Tim Cook explained that the traction and growing market share for the iPhone in many emerging markets, including Greater China, sparked a record quarter for the company. Indeed, Cook stated that market share in Japan reached "an incredible 55%."
iPhone sales were up 28% [in China], that's versus the IDCs market forecast of 20% growth.
The traction of the iPhone in China simply beat everyone's expectations. The iPhone enjoyed a high level of success in China, and investors should expect it to remain so.
Secondly, the growth of Apple's retail segment and point-of-sales numbers in China demonstrate the continued potential the country presents. Apple seeks to triple the number of stores in the country in two years, and observers are certainly aware of the success the retail strategy has been for the company over the years, consistently at or near the top of all companies on a sales-per-square-foot basis. Cook's explanation is that only 40,000 points-of-sale exist in a country with hundreds of millions of cellphone users. Clearly, there is room to grow to reach all these consumers.
Also, Cook's numbers on adoption of first-time iPhone owners were startling: over 60% of 4s and 5c purchasers switched from Google (GOOG, GOOGL) Android. This fact appears to be antithetical to what we have heard from the last few years about Apple consistently losing market share to Android phones, and could portend more positive traction for the iPhone in China"
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Source: Seeking Alpha
"China Mobile (CHL) carries around 780 million subscribers on its network, and so the fanfare was somewhat warranted when the deal has hatched with Apple and the iPhone launched back in January of this year. And as we peruse the earnings and pore over the call, it is easy to see that China and Japan are proving to be solid revenue growth drivers".
"Widely expected to add around 12 million iPhone sales for Apple this year, China Mobile helped push Apple's iPhone numbers past 43 million for the March quarter. Revenues for the quarter, as compared to last year, are up 17%. Total revenue from China alone approached $10 billion, almost 1/4th of Apple's entire revenue for the quarter. China's growth represented 13% growth year-over-year, with Japan clocking in at 26% growth over the same time frame. CEO Tim Cook explained that the traction and growing market share for the iPhone in many emerging markets, including Greater China, sparked a record quarter for the company. Indeed, Cook stated that market share in Japan reached "an incredible 55%."
iPhone sales were up 28% [in China], that's versus the IDCs market forecast of 20% growth.
The traction of the iPhone in China simply beat everyone's expectations. The iPhone enjoyed a high level of success in China, and investors should expect it to remain so.
Secondly, the growth of Apple's retail segment and point-of-sales numbers in China demonstrate the continued potential the country presents. Apple seeks to triple the number of stores in the country in two years, and observers are certainly aware of the success the retail strategy has been for the company over the years, consistently at or near the top of all companies on a sales-per-square-foot basis. Cook's explanation is that only 40,000 points-of-sale exist in a country with hundreds of millions of cellphone users. Clearly, there is room to grow to reach all these consumers.
Also, Cook's numbers on adoption of first-time iPhone owners were startling: over 60% of 4s and 5c purchasers switched from Google (GOOG, GOOGL) Android. This fact appears to be antithetical to what we have heard from the last few years about Apple consistently losing market share to Android phones, and could portend more positive traction for the iPhone in China"
Source: Seeking Alpha
