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Can Apple regain its crown in China?(2)

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2016-08-01 16:14chinadaily.com.cn Editor: Xu Shanshan

However, from a long-term perspective, Yan said that Apple's revenue growth will be back on track since local consumers' demands for Apple's devices, especially iPhones, remain strong and the profits that contributed by software on iOS platform will also continually boost its business expansion.

"More Chinese customers with upgraded consumption capabilities will be expected to join the iOS users' group and the hardware upgrade in every two years for iPhone users will also stimulate the sales in this fall," said Yan.

He predicted that the new iPhone release will witness a sales peak, up 20 percent compared to this fiscal quarter.

Jin said that investors still focus on the long-term Return On Investment (ROI) and will never make imprudent decisions or to bearish Apple just for a seasonal drop as usually did in Apple fiscal year.

Jin noted that given Apple's fiscal year cycle, it normally sees Apple will have better performance in the second half of 2016 as many new Apple products will be launched in the H2.

"The September will have the biggest launch event where most of Apple products will have their new generations to stimulate shipments and sales overall globally," said Jin. "For China, this trend will be seen in the following quarters as well."

The company has also invested big on research and development (R&D). Over the first nine months of the 2016 fiscal year, Apple has increased R&D spending to $7.475 billion, from $5.847 billion one year ago.

With regard to the media reports indicating that Apple is planning foray into Indian market, Jin said that it could be one other China market for Apple to grow its iPhone business out there but it does really need time when seeing the macro economy and the consumption capacity in India today.

James said that Apple's existing China-strategy is expanding their territories in terms of hardware and software users.

"By compared to the company's previous distinguishing feature that dominate disruptive innovations on products, currently Apple has adjusted to build iOS eco-system and permeate its services from tier 3 to tier 5 or tier 6 cities through brick and mortar stores to boost the revenue growth," said James.

"Emerging markets such as India will be Apple's long term market with great potential in 3 to 5 years, and the company has been working to achieve government support, localized produce, labor costs reduction and profit maximization in the area," James added.

  

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