China Becomes Apple iPhone’s Largest Market

Apple registered one of the best second quarters of its smartphone business ever. Apple soared in all six global regions, especially in major emerging markets

Apple’s global iPhone shipments beat expectations and grew +15% in Q2 2021, despite supply constraints.

Apple expanded in all six global regions in Q2 2021, with volume growth in major emerging markets like China, India, Brazil and Russia, particularly impressive. China Apple

 

China overtook United States as Apple’s largest market globally, while Brazil overtook the UK as the fifth largest one. Emerging markets play increasingly important role in Apple’s smartphone business.

 

Over the years, China has proven itself to be both an important customer and partner to AppIe. Apple’s manufacturing supply chain is based in China and Taiwan, where nearly every iPhone, iPad and Mac computer is made.

According to Mark Zgutowicz, an analyst at Rosenblatt Securities, Apple’s presence in China is actually a boon to the government’s agenda. Chinese technology companies like Huawei Technologies, Shenzhen Zhixin New Information Technology, Vivo Communication Technology Company and Guangdong Oppo Mobile Telecommunications Corp. have more or the same amount of mobile phone market share in China as Apple, according to data from market research firm Counterpoint. This means that Apple is simply another player that keeps its domestic companies from getting too big. “Ironically, Apple keeps the other companies in check,” Żgutowicz said. “It keeps things level for the other Chinese manufacturers.”


Apple uses more suppliers from China than Taiwan for first time, data shows China Apple

Apple used more suppliers from China last year than it did from Taiwan for the first time, highlighting the difficulty the United States government will have in persuading companies to become less reliant on its superpower rival.

Despite Donald Trump’s trade war against China, the tech company had 51 suppliers based in China and Hong Kong in 2020, according to a Nikkei Asia analysis of the annual Apple supplier list released last week.

The figure compares with 42 in 2018 and it knocks Taiwan – led by the flagship semiconductor producer TSMC – off the top spot for the first time. Apple did not release data for 2019.

Nikkei Asia said the list, which has been released almost every year since 2013, covers 98% of Apple’s parts and production expenditure for the previous year.

Apple is the biggest tech company in the world and sold more than 300m devices in 2020, from iPhones and watches to iPads and Macs, in a business worth hundreds of billions of dollars.

The scale of its business means Apple is drawn to a huge manufacturing base and skills pool in China that no other country can match. China Apple

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