Buried in Apple Inc. (NASDAQ:AAPL) amazing earnings report last Tuesday were some surprising facts about the company’s business in China. China is the world’s largest market and Apple have been making strides into the country far beyond its manufacturing base. The most recent figures from Apple’s business in China are surprisingly healthy and point to a burgeoning market for the company’s products in that part of the world.
The most recent figures show that of Apple’s $39.2 billion revenue in the last quarter $7.9 billion of it came from China. The companies entire revenue taken from China in 2011 was just $13.3 billion. Sales this year are bound to at least double that figure if everything goes to plan for the Cupertino company. As sales increase the company may shift its strategy in order to facilitate greater sales in emerging markets.
The company does face problem in the country despite its success. Most recently the firm is involved in an ongoing legal dispute surrounding its iPad trademark in the country. A Chinese company claims presence in offering a product under the iPad name. Because of the conflict the company has not yet released its new iPad in China, a move that may have dampened sales there temporarily.
Meanwhile Western media sources continue to cover the treatment of workers at the plants that manufacture its goods though Apple has done much recently to improve the plight of workers at the manufacturing facilities. The company’s CEO Tim Cook visited the factory floor in one of the manufacturing plants in a visit to the country one month ago.
China seems to hold the key to a large chunk of Apple’s future. As emerging economies, particularly those with large population, converge with Western wealth standards demand for Western luxury products will go up. Apple Inc. (NASDAQ:AAPL) is the number one supplier of luxury Western products in the world so expect them to be ahead of the game in every area as the charge on China continues.
Apple has long built its most famous devices in the country through its partnership with Foxconn. In more recent times however the firm has increasingly looked to China to secure a larger market for its luxury products. The east Asian giant’s increasing prosperity has brought many consumer product brands popular in Western countries into the market. Apple, the world’s largest consumer electronics company by far appears to have the most to gain from the burgeoning economy.
