Apple Revenue Up 11% in Q4 in China After Personnel Adjustment
Apple US announced its revenue from the fourth quarter last year, which is also the first quarter of Apple’s 2018 fiscal year. Though iPhone and iMac sales fell, Apple achieved success in the China market with an 11 percent boost in revenue.
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Apple Financial Result report revealed Apple earned $17.9 billion in China during the fourth quarter of 2017. The revenue is an increase of 11 percent year on year, and an increase of 83 percent over the third quarter of 2017.
Apple China’s sales and operating income has plummeted in the past several quarters. China, once a magic market contributing to doubling growth, became a ‘troublesome’ market. The main reason is that the iPhone release schedule destroyed Chinese consumers’ desire to buy.
In the third quarter of 2017, Apple ended its six-quarter run of falling revenue in the Chinese market and reached an increase of 12 percent. Similar year-on-year growth in Q4 showed that Apple’s business in the Chinese region returned to sound growth.
But China’s business is not its fastest growing. In Q4, the earnings of Apple Japan were $7.2 billion, an increase of 26 percent year-on-year and an increase of 88 percent over Q3 last year.
Apple increased its sales by 10 percent in the American market and 14 percent in Europe. At present, among major sectors, Apple’s revenue in China lags behind the America and Europe, ranking third place, but surpassing the Japanese market and Asia Pacific market – except in Japan.
Three New iPhones – 2017
Apple launched three new iPhones last year. But according to the Chinese media and retail stores, the iPhone 8 and iPhone 8 Plus performed badly, proving the slight upgrade has come to an end.
The iPhone 7 sold well in China after a $100 price reduction. And consumers believe the iPhone 7 is cost-effective compared to an iPhone 8.
As for the market performance of iPhone X in China, previous foreign media and analysts’ claims are full of contradiction. Nikki reported the iPhone X had poor sales around the world. Guo Mingji, a Taiwan KGI securities analyst, said the iPhone X performed poorly in the Chinese market. The screen design was criticized for affecting user experience and efficiency.
Some Wall Street analysts said the iPhone X had outstanding performance in the Chinese market. Up to now, we still don’t know the sales data of the iPhone X in the Chinese market.
Apple’s iPhone sales fell again during the last four quarters, down 1 percent year on year. But because of the increase in average sales price (the iPhone X is priced $999, which makes it the most expensive iPhone yet). iPhone sales revenue has increased by 13 percent.
It is worth mentioning that, faced with the long slump in the Chinese market, Apple reappointed the head of its Chinese market last year. An Chinese woman who is engaged in technology development is responsible for the operation of its China business. The growth of the last two quarters showed that Apple’s personnel adjustment is effective.