Chinese market is the key to Apple's future development

Apple’s profits have risen more than 90% over the same period in two consecutive quarters. Not only that, but last quarter was Apple's highest income in the quarter except for the Christmas season. Apple’s income of 28 billion U.S. dollars was less than that of Wall Street analysts. The forecast of 25 billion U.S. dollars is a big one.

Last quarter, Apple sold 20 million iPhones, which exceeded the expectations of many analysts and surpassed the record of 18 million units in the previous quarter. For the future development of Apple, China is more important than any other country and Apple's own products.

In the most recent quarter, the Chinese market (Apple's definition of China, including China, Hong Kong, and Taiwan) contributed 3.8 billion U.S. dollars to Apple's revenue, an increase of about 6 times year-on-year, and accounted for 14% of Apple's total revenue. In the previous two quarters, the Chinese market accounted for only 10% of Apple's revenue. Tim Cook, Apple's chief operating officer, said at the performance conference that Apple is currently only touching the surface of the Chinese market.

Cook is right. Until now, Apple has only four stores in China (there are 327 stores worldwide). This quarter, Apple will open another store in Hong Kong, and they are likely to open more than a dozen stores in mainland China and gain huge profits.

Overall, there is still much room for improvement in Apple’s market share in China. In the next few years, the Chinese market will become an important engine for the rapid growth of Apple's revenue.