• Did you order new AirTags? We've opened a dedicated AirTags forum.

MacRumors

macrumors bot
Original poster
Apr 12, 2001
52,499
14,194



A day before the company is set to announce earnings for its first fiscal quarter of 2015, Financial Times highlights a recent report suggesting Apple may report it sold more iPhones in China than in the U.S. for the first time ever.

According to analysts from financial firm UBS, China accounted for 36 percent of iPhone shipments in the most recent quarter, compared to 24 percent for the U.S. The analysts also compared the numbers to 2013, noting that a year before China accounted for only 22 percent of shipments with the U.S. at 29 percent.

iphone6plus.jpg
Creative Strategies analyst Ben Bajarin concurs with the UBS report, believing around 2 million more iPhones were sold in China than in the U.S. during the quarter. With the upcoming launch of the Apple Watch, he also believes it's just the beginning of the country's fiscal dominance over Apple sales.
"It's already been a good year, building up to the climax of this quarter," said Bajarin, referring to Apple's momentum in the world's largest smartphone market. "It leads to a lot more optimism for China . . . Their potential headroom in China is higher than it is here [in the US].

They will likely do more in China than US from here on out," he said. "It certainly shows how important the China market is to Apple's upside."
Apple has been emphasizing the importance of China for the company for some time, most recently meeting with the Chinese government to discuss data privacy and security, partnering with popular mobile payment service Alipay, and planning multiple Apple Store openings like the one in Chongqing opening this week.

On the distribution front, 2014 most notably saw a partnership between Apple and the world's largest carrier, China Mobile. The partnership allowed iPhones to be sold in 3,000 more cities where Apple previously had very little presence, undoubtedly aiding the Cupertino-based company rising Chinese in recent quarters.

Article Link: Apple Likely Sold More iPhones in China Than in the U.S. Last Quarter
 

coolfactor

macrumors 603
Jul 29, 2002
5,007
5,424
Vancouver, BC
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

----------

I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?
 
Comment

xionxiox

macrumors regular
Jul 20, 2010
227
0
Hell
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

----------

I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?

This is prob not the best place for social science class.
 
Last edited:
Comment

MH01

Suspended
Feb 11, 2008
12,107
9,298
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

----------

I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?

its a tool to communicate and consume data for most westerners. What your describing is faboys, most normal users do not cherish a device! If anything Asians, are more into tech than your average westerner.
 
Comment

ArtOfWarfare

macrumors G3
Nov 26, 2007
9,133
5,110
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

I think Apple will continue to favor the US, since it's a US based company. If this changes anything, it'll just mean China is the second most favored country, so gg UK (who I think Apple was previously treating at the number two market?)
 
Comment

2457282

Suspended
Dec 6, 2012
3,327
3,014
I think the highest number I have read is 78million iphones. The consensus is lower. I dont know if the numbers will be split by country, but it will be interesting nonetheless to see what they report out tomorrow. The key number will be if they split out the 6 vs 6 plus as that will give us a gauge as to how big the phone will get. If the 6+ gets a huge number maybe we will see bigger phones in the future.

Another interesting number will be ipad sales. They have been declining of late, so if they report lower sales again, will that mean yes or no to the 12" ipad that has been rumored.

Lots to ponder. (not that it matters since Apple will do what Apple will do, but fun to play the guessing game at home)
 
Comment

i5pro

macrumors regular
Jun 17, 2010
165
234
NNJ
i think the numbers are skewed..based on the number of resellers buying up phones in the stores only to re-sell them in China at markups. It's probably significantly more phones sold in China than the report can accurately track.
 
Comment

Jakexb

macrumors 6502a
Mar 18, 2014
784
1,091
If it was just a thing to consume data, they'd buy one of the cheaper Chinese android handsets.
 
Comment

Rocketman

macrumors 603
I have been posting about this for a while now. Someone should ask Cook during the conference call what the China % penetration is now and what it is in similarly developed countries. Offer to take the question.

https://forums.macrumors.com/search/?searchid=51064082

Advanced forum search for:
User: rocketman
Subject: china sales
Form: posts

12-18-13
https://forums.macrumors.com/posts/18519083/

3-20-14
https://forums.macrumors.com/posts/18905213/

4-19-14
https://forums.macrumors.com/posts/18901997/
 
Comment

BigJayhawk

macrumors regular
Jan 8, 2003
225
147
New Jersey
gg US economy

Regardless, none of those profits will benefit the U.S. Economy because the I.R.S. Is better at border patrol here than the I.N.S.

I.R.S.: "Don't let that money that was born in another country come to the U.S. to work for US. keep it in those other countries where it can't do us any good. That is, of course, unless you want to give us another 30% tax on your already taxed self."

The U.S. treats foreign revenue worse than the "Coyotes" treat foreign immigrants. No wonder the foreign immigrants still cross the border and none of the foreign BILLIONS makes it into this country. (And to think, ONE of the two got an Executive Order -- it wasn't the one that would HELP OUR ECONOMY though.)
 
Last edited:
Comment

filmantopia

macrumors 6502a
Feb 5, 2010
729
1,857
I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?

Well they pay the Apple premium. I would say they appreciate the design potentially more so than Westerners.
 
Comment

allpar

macrumors 6502
May 20, 2002
331
86
Regardless, none of those profits will benefit the U.S. Economy because the I.R.S. Is better at border patrol here than the I.N.S.

I.R.S.: "Don't let that money that was born in another country come to the U.S. to work for US. keep it in those other countries where it can't do us any good. That is, of course, unless you want to give us another 30% tax on your already taxed self."

The U.S. treats foreign revenue worse than the "Coyotes" treat foreign immigrants.

I just have to point out that the IRS only enforces rules made by Congress, and that Congress has cut their budget yet again.
 
Comment

ToroidalZeus

macrumors 68020
Dec 8, 2009
2,300
871
Regardless, none of those profits will benefit the U.S. Economy because the I.R.S. Is better at border patrol here than the I.N.S.

I.R.S.: "Don't let that money that was born in another country come to the U.S. to work for US. keep it in those other countries where it can't do us any good. That is, of course, unless you want to give us another 30% tax on your already taxed self."

The U.S. treats foreign revenue worse than the "Coyotes" treat foreign immigrants. No wonder the foreign immigrants still cross the border and none of the foreign BILLIONS makes it into this country. (And to think, ONE of the two got an Executive Order -- it wasn't the one that would HELP OUR ECONOMY though.)
It's complicated.

Apples effective tax rate because of all their tax dodging may be as low as 10%. In fairness a very successful corporation should have a tax rate above 40% (which is the highest income bracket) If Apple paid a "fairshare" of their taxes CA would have millions extra to invest into cash strapped systems like public education, The University of California.

On the flip-side it's been shown time and again that govt are incredibly wasteful. So I don't really blame corporations for not wanting to pay taxes.

In the end we the people suffer.
 
Comment

Lazy

macrumors 6502
May 27, 2003
304
335
Silicon Valley
It's complicated.

Apples effective tax rate because of all their tax dodging may be as low as 10%. In fairness a very successful corporation should have a tax rate above 40% (which is the highest income bracket) If Apple paid a "fairshare" of their taxes CA would have millions extra to invest into cash strapped systems like public education, The University of California.

On the flip-side it's been shown time and again that govt are incredibly wasteful. So I don't really blame corporations for not wanting to pay taxes.

In the end we the people suffer.

Or there's a good argument to be made that corporate tax rates should be very low and taxes collected from the profits collected by shareholders. (Whatever a corporation doesn't pay in tax is pure profit.) Regardless of where taxes are collected I'm pretty sympathetic to the argument that taxing corporate profits and then taxing what's left after it's passed along to shareholders is double taxation. Or at least a much higher rate than it looks like when looking at only one of those taxation points.

And what you call "tax dodging" wouldn't even be an issue if the US had sensible taxation policies for foreign income, like most other developed nations do.
 
Comment

Moshe1010

macrumors 6502a
Jun 27, 2010
858
76
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

----------

I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?
How about using your phone to take phone numbers of girls? looks like you missed a feature.
 
Comment

macs4nw

macrumors 601
If it was just a thing to consume data, they'd buy one of the cheaper Chinese android handsets.

Aptly put. If these preliminary sales figures turn out to be correct, the joining of China Mobile last year (with their over 800 Million subscribers) as an Apple partner, is probably what sealed the deal.

I might add, it's a known fact Chinese consumers are big on status symbols, much more so than we are. Factor in a population of give or take 1.4 Billion people, and this new reality, even though somewhat shocking, shouldn't come as a surprise.
 
Comment

Deelron

macrumors regular
Jan 30, 2009
235
113
Regardless, none of those profits will benefit the U.S. Economy because the I.R.S. Is better at border patrol here than the I.N.S.

Not to mention the INS is pretty terrible at border control once it stopped existing (might want to refer to the CBP).
 
Comment

Poisonivy326

macrumors 6502
Nov 25, 2012
485
97
Aptly put. If these preliminary sales figures turn out to be correct, the joining of China Mobile last year (with their over 800 Million subscribers) as an Apple partner, is probably what sealed the deal.

I might add, it's a known fact Chinese consumers are big on status symbols, much more so than we are. Factor in a population of give or take 1.4 Billion people, and this new reality, even though somewhat shocking, shouldn't come as a surprise.

It's not a little known fact. In China there are discussions about this all the time: how there's a great disparity of wealth and that creates a craving for material possessions. There's even a term for spoiled, entitled, and very materialistic children: "little emperors."

In China "iphone factories" are also a common term and if you can afford an iphone that some of your countrymen have to make in a sweatshop, that's a big deal.
 
Comment

MH01

Suspended
Feb 11, 2008
12,107
9,298
If it was just a thing to consume data, they'd buy one of the cheaper Chinese android handsets.

Cause it also comes down to the OS people prefer, and with Apple, maybe a status symbol? Your fooling yourself if you think these peope care about the specs etc.

There are many people that buy expansive items for show, they care less about the details of the item. Do you believe that the majority of people who own luxury cars, actually know the in and outs of thier car like a car fan? It's a means to get from a to b in comfort, and look good. Same goes for phones, why brands like vertu exist, it's just that an iPhone is the poor mans bling item.
 
Comment

Zxxv

macrumors 68040
Nov 13, 2011
3,558
1,103
UK
Its a new market what do they expect?

A better comparison would be the original and 3G iPhone sales against these sales as a percentage but that probably takes too much work and effort.
 
Comment

Michaelgtrusa

macrumors 604
Oct 13, 2008
7,900
1,821
Analysts that said Apple couldn't compete in China without a cheap phone discover they're now #1 in China.
 
Comment
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.