The Chinese Market Serves Apple (NASDAQ:APPL) Well


The 4G market in China seems to be undergoing extensive growth recently. It came out in February 2014 and has never looked back since then in making it to the top, in comparison with its contenders. On the very first month of its launch, it succeeded in gathering 1.3 million consumers and the trend has continued over months, with the number of consumers increasing each time per month. The whooping figure is an immense volume of 13.5 million 4G consumers in October alone. This has taken the total up to a remarkable 54.5 million users now.

The 4G technology started its support of Apple (NASDAQ:APPL)’s 5C and 5S in March 2014.

Out of a total of 1.28 million, the China Mobile takes up 62.5% share of the pie for the total number of wireless customers. This is quite a number, when compared with just 174 million smartphone consumers in the US.

While Apple (NASDAQ:APPL) took its time with developing a large display screen iPhones, it launched its iPhone 6 and 6 Plus at the perfect time of Chine Mobile’s rollout of the 4G technology. The mid-teen market has been more taken with Apple (NASDAQ:APPL) iPhones in the Chinese market due to smaller screens, and the tech giant has left no stone unturned but to no avail; the sales didn’t catchup with the exceeding expectations the company had.

However, things are different now. With a total of 1.28 billion user population, a 1% increase in the shares price in one instant means 13 million iPhones that help in achieving the revenue figure of $8 billion. This figure adds up 4.5% to the total Apple (NASDAQ:APPL) revenue. The EPS growth rate is $0.25 as opposed to $6.45 for the 2014 fiscal quarters.

The fiscal 2014 has been a good year for the Chinese market, in which the total revenue generated were $29.8 billion, with a resultant 17% year-over-year growth. However, September was one of the weaker months, the revenue growth rate was a meagre 0.8% at $5.8 billion. This was probably due to the launch time of the Apple (NASDAQ:APPL) iPhones. The iPhone 6 and 6 Plus versions were made available in the Chinese market in October, as opposed to the September launch of the 5C and 5S in 2013.

Since its launch is September, the iPhone 6 has been the most favored phone in the Japanese market. Apple (NASDAQ:APPL) gave some stiff competition to market rivals in October, by taking up all top six positions for smartphones, in the sales category. It went on to retain the 9 out of top 14 positions after topping the charts in the prior month. It then went on to take the 6 out of top 9 positions, even after being on sale for nearly two weeks.  It didn’t weaken just there, and went on to take up three of the top four positions in November.

Apple (NASDAQ:APPL) is expected to sell 70 million iPhones in China in December Quarter.