Everyone’s favorite tech giant Apple Inc. (NASDAQ:AAPL) aims to open 25 new outlets in its China region. It plans to carry this out over the next two years hence increasing the number of stores from 15 to 40. Tim Cook reported this plan to Sina, a Chinese news gateway, today. The gateway concluded that China is to become Apple’s (NASDAQ:AAPL) biggest revenue source as the transcript of the news stated.
The remarks of Cook weren’t published in great detail but a report of what direction the plans would take was stated. Sales of the Chinese region currently stand at about $5.8 billion for the three months ending September 27. This makes around 14% of the total revenue of Apple (NASDAQ:AAPL). Cook met the Chinese vice Premier Ma Kai yesterday in his trip to China with the debut of the company’s new phones.
He discussed matters such as data security, which is highly taken into account both in the U.S. and China, very seriously as the Xinhua News Agency in China stated. This meeting was days after the Chinese government was blamed in hacking the iCloud consumer services by a web monitoring team as reported by Greatfire.org. It was reported by Xinhua that Cook visited one of the Foxconn factories in the Henan province in order to supervise the iPhone 6 productions as well.
Apple (NASDAQ:AAPL) first opened a store in China back in 2008 in Beijing. Ever since then it has increased the number of stores in areas like Shenzhen, Shanghai and Chongqing. It also expanded throughout the region by other activities like making a deal with China Mobile (HKG: 0941) and discussing growth with government officials. It has been said that this week, the CEO will also attend meetings at the country’s Tsinghua University in Beijing where he is on the advisory board of the Economics and Management division of the school.
He will also meet with firms such as Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) in the next work to work on collaborations. In one of the interviews on this trip, Cook confirmed the company’s plans to open new stores in the area and in a conference call this week he stated that China is a huge market where people are moving into the middle class more than any other nation.
Therefore he said that Apple (NASDAQ:AAPL) is investing in the country and there are 15 right now in Greater China and in the next few years there will be 40 with 315 cities covered in the company’s online store. This heavy expansion into the country is only because the CEO thinks the country can help the company prosper. The company didn’t have much revenue coming from China in its previous quarter.
The revenue only increased by 1% over the year because of the delayed launch of Apple’s (NASDAQ:AAPL) iPhone 6 in China. It will have to make most of the CEO’s visit and by filling the loopholes in its performance to cater towards their betterment.