Apple reported record-breaking earnings in the final quarter of last year, and CEO Tim Cook highlighted growth in iPhone sales in China as a key reason for this.
This was a dramatic reversal after 18 months of declining sales in the country, and analysts say there are three reasons for this …
The best iPhone sales in history in China
Cook reported that Apple had enjoyed success in China across the board, encompassing both existing iPhone owners upgrading to later models and people switching from Android.
Greater China was up 38% year-on-year. It was driven by iPhone where we set an all-time revenue record, so it was the best iPhone quarter in history in Greater China […] Traffic in our stores in China grew by strong double digits year-over-year. It was a terrific quarter. Our installed base reached an all-time high in both Greater China and Mainland China. And we set an all-time record for the upgraders and we saw strong double-digit growth on switchers. And according to a survey from Worldpanel, iPhones were the top 3 smartphones in urban China during the quarter.
Apple had previously seen an 18-month long decline in iPhone sales in Greater China thanks to the growing sophistication of models launched by local brands.
Three reasons for the success
Analysts cited by Wired say there are three reasons for this turnaround.
First, the base model iPhone 17 offers a huge amount of phone for the money. It’s the reason it was this model – not the more exciting iPhone Air or more sophisticated iPhone 17 Pro – that we crowned Apple product of the year.
iPhone 17 achieved something that a ‘base’ model hasn’t in years. It’s an all-around great iPhone with zero significant compromises […] It’s the first non-Pro iPhone to offer an Always-On display with ProMotion. It also has the same 18MP selfie camera with Center Stage as the iPhone 17 Pro, plus an upgraded 48MP Ultra Wide lens on the back […] For the first time, the base model iPhone compares extremely well to the Pro model. All you’re really getting is a little more battery life, a little more performance, and a third camera.
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