People consult in front of Apple’s new flagship store in Sanlitun on July 17, 2020 in Beijing, China.
Quan Yajun | Visual Chinese group Getty Images
In June, Apple managed to grow in China, helped by record iPad services and revenue in the world’s second-largest economy.
The US technology giant reported revenue from Greater China in the fiscal third quarter ending in June at $ 9.33 billion. This is 1.9% more year-on-year. China is Apple’s third largest revenue market.
Revenue from Apple’s services, which include products such as the App Store and Apple Music, helped the company, while iPad sales also increased.
CEO Tim Cook said service revenues set a new record in June. CFO Luca Maestri added that the iPad also recorded record revenues in China in the June quarter.
“The iPad was helped by work from home and distance learning in the June quarter (China), as was the case in other geographical areas. And Mac also grew by a strong double digit this quarter. And the services set a new June record here, “Cook said during the earnings call.
“We continue to see very high rates for new customers on Macs and iPads. To get you in perspective, about three out of four customers who buy a Mac are new to China, and about two out of three who buy an iPad are new. And those are the numbers we are proud of. ‘ “
Apple does not provide product-specific revenue sharing.
According to Sensor Tower, gross revenue from the App Store in the second quarter, which forms a small part of the overall services division, rose 13% year-over-year to $ 4.4 billion.
Meanwhile, iPhone sales rebounded sharply in the second quarter compared to the first quarter in China, the height of the country’s coronavirus crisis. Apple was forced to shut down stores and sales hit.
However, Apple sold 13 million iPhones in June, a year-on-year increase of 62%, according to data from the Shanghai CINNO Research survey. That number was 225% higher than the 4 million iPhones sold in the first quarter of 2020.
The continued popularity of the iPhone 11 line, backed by discounts, has helped Apple grow. And the company was also helped by the cheaper second-generation iPhone SE. According to Counterpoint Research, the device was actually among the top 3 best-selling iPhones in China in the second quarter.
“As I mentioned, the iPhone 11 was our best-selling phone and was number one in urban China, so we’re very proud of it,” Cook said.