Apple’s iPhone market grew 75 percent in China year over year, Apple CEO Tim Cook announced on stage today.
The Greater China region is Apple’s second-largest market after the Americas. When Apple released the big-screened iPhone 6 and iPhone 6 Plus last September, the company’s sales in China really took off. In Apple’s Q3 earnings, the company reported $13.2 billion in revenue from greater China, which includes China, Hong Kong and Taiwan. That was an increase of 112 percent from the same time a year prior.
But there are some potential challenges Apple might face in China. As TechCrunch’s Romain Dillet recently wrote, China is in the midst of an economic slowdown, which means that Apple’s iPhone sales could potentially drop in China. That’s because as unemployment grows, those who still have a job would likely have to give more of their money to their families, and therefore have a hard time justifying buying an expensive iPhone.
Another potential issue for Apple could arise from workers in China asking for a minimum wage and better contracts, which could drastically increase production costs.
However, those are all long-term issues. For right now, at least, Apple’s business is strong in China.