Tim Cook says “sky is the limit” for Apple in China

Tue, Oct 18, 2011


63% of Apple’s revenue this past quarter came from sales abroad, and leading Apple’s international charge is China, a region Apple is devoting more and more resources towards with each passing month.

During Apple’s earnings conference call earlier today, CEO Tim Cook took some time to discuss how important a cog China plays in Apple’s long-term growth. Highlighting the increasing weight of China to Apple’s bottom line, Cook said that revenue from China in 2009 accounted for 2% of Apple’s total revenue. In 2011, China accounted for 12% of Apple’s revenue. And looking at the most recent quarter by itself, revenue from China accounted for 16% of Apple’s revenue.

Cook elaborated, noting that China is Apple’s fastest growing region and that revenue year over year is up an astounding 270%. Further, Cook highlighted Apple’s increased retail presence in the country. In addition to flagship Apple retail outlets in Hong Kong and Shanghai, Apple now has 200 mono-branded stores with over 7,000 points of sale for the iPhone.

“I’ve┬ánever seen a country with as many people rising into the middle class and aspiring to buy products Apple makes,” said Cook. “It’s an area of enormous opportunity.”

A few weeks ago, Apple opened up its first Hong Kong store to massive crowds, with 40,000 people expected to shuffle in and out of the retail space on a daily basis.

One other growth country Tim Cook mentioned was Brazil where revenue is up over 118% year over year, reaching over $900 million in the quarter gone by.

As for other growth opportunities, Cook said Russia is becoming a more promising locale and that the Middle East also presents some “significant opportunities” for Apple.

“In China,” Cook concluded, “the sky is the limit and I wouldn’t discount these other places I mentioned as well.”


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