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Apple Maintain Growth in China, Buoyed By Strong Sales of iPhone and iPad

July 31, 2020 3:46 pm

Beijing (PingWest)- Apple booked a strong growth in China in the second quarter, buoyed by strong sales of iPad and iPhone in its’s third-largest market by revenue.

Apple’s booked revenue of USD9.33 billion in China in the second quarter, up 1.9% year-over-year compared to same period of last year.

“Driven by work from home arrangement and distance learning, both iPad and Mac grew strong, and our service revenue set a new June quarter record in China,” Apple’s chief executive Tim Cook said on the earning call.

Apple’s services revenue, which includes products like the App Store and Apple Music also shot up.

According to data compiled by Sensor Tower, App Store gross revenue, which accounted fro small part of the overall services division, grew 13% year-on-year to USD4.4 billion.

Apart from iPad and Mac, iPhone sales bounced sharply in the second quarter compared to the first quarter in China, when Apple was forced to shut down Apple stores due to the peak of the coronavirus crisis in the country.

Boosted by discounts policy, demand for iPhone in China surged in the second quarter.

In June 2, Apple announced to cut the prices of its latest iPhones-including the iPhone 11, iPhone 11 Pro, iPhone 11 Pro Max and the new iPhone SE ahead of a major online shopping in China known as 618, which Apple rarely participates in.

In China, Apple sells its products via various channels beside its own retail stores. On Alibbaa-owned e-commerce site Tmall, Apple has an official store. Alibaba’s rival JD.com is an official reseller of Apple products. Normally, the discounts are only available through these retailers, and not through Apple directly, whether it be online or in-store.

However, Apple has changed its sales strategy this time as it looks to boost sales and mitigate the effect brought by coronavirus lockdown in the U.S and European markets.

Apple sold 13 million iPhone in the second quarter, up 62% year-on-year, according to data issued by data research firm CINNO. The second quarter figure was 225% higher than the 4 million iPhone sold in the first quarter of 2020.

According to a recent report released by Counterpoint Research, Apple was the fastest-growing major smartphone brand in China in the second quarter, despite Huawei remained the overall leader in China.

“Apple grew an impressive 32 per cent year on year due to the continued popularity of the iPhone 11 series and price cuts,” the Counterpoint report said.

In the second quarter, Apple was the fourth-largest smartphone vendor in China, behind Huawei, Vivo and Oppo