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Should Apple Thank China For Its Outstanding Quarter?

By now, most investors have heard that Apple had a blowout quarter. And indeed, it was a record quarter. Sales and profits set new records, as iPhone sales soared. Underneath the surface, and interesting divergence is appearing among Apple’s geographic markets. While its more mature markets like North America and Europe did well, it was China that led the way in terms of growth. Revenue in the Americas and Europe rose 23% and 20%, respectively, while revenue in China jumped 70% year over year.

This was due largely to Apple’s new partnership with China Mobile, the biggest wireless carrier in the world with more than 800 million customers. China was Apple's fastest-growing geography by far last quarter, and because of this tremendous growth, China is now very close to unseating Europe as Apple's second-biggest market by revenue.

Apple's presence in China is still in the early stages of development, which means there is plenty of room left for further growth. Apple opened 10 new retail locations in China last quarter, two more this month, and sees the potential for 40 stores in Greater China by mid-2016. This is why analysts are extremely bullish on Apple’s growth opportunity in China. Erik Sherman at MoneyWatch wrote “Apple's growth in China is propelling the technology company to record financial results.”