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Apple enjoys revenue growth despite iPhone sales slump

By Cheng Yu | China Daily | Updated: 2018-02-03 10:19
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A man looks at the screen of his mobile phone in front of an Apple logo outside its store in Shanghai. [Photo/Agencies]

Apple reported on Friday that the company achieved "very satisfying" double-digit growth in revenue in China during the past fiscal quarter, despite an overall dip of iPhone sales globally.

In China, one of Apple's key markets, the company's total revenue soared by 11 percent year-on-year to $17.96 billion in the first quarter of 2018 fiscal year ending December. Compared to the previous quarter, revenues were up 83 percent.

Tim Cook, CEO of Apple, noted that Apple's major products, including the iPhone, Mac and iPad, all experienced improved results in China.

"The growing revenue is mainly due to the higher price of the phones, both iPhone X and iPhone 8. The $999 iPhone X, for example, sparked a luxury market for the iPhone and helped Apple spur new growth in its most important business," said Jia Mo, an analyst with Canalys.

In addition, Jia noted that Apple earlier appointed Isabel Ge Mahe to the company's newly created post of vice-president and managing director in China, and that she has done a good job in localization, which has also driven growth.

China is not the only region with strong growth momentum; Apple's revenue also soared in the Japanese, United States and European markets.

Overall, the California-based company reported an all-time revenue high of $88.3 billion, up 13 percent year-on-year, in the recent quarter, also recognized as an important holiday season.

"We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup," Cook said. "iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November."

Although overall sales of iPhones dropped by roughly 1 percent, the company still achieved record results year-on-year.

"Like that in China, the rising price of iPhones is one of the main reasons leading to the growth of both revenue and profit. In addition to that, wearable devices, including Apple Watch and AirPods, have had shining performance in the quarter and contributed greatly to the revenue," Jia said.

According to Apple's fiscal report, its wearable devices, including Apple watches and airpods, grew more than 70 percent in revenue year-on-year.

In terms of future development, Jia predicted shipments will be conservative but revenue and profits will see continued growth.

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