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Apple's business in China is significant and has been a key driver of the company's growth in recent years. In fact, China is Apple's second-largest market after the United States.
According to Apple's financial reports, the company generated $83.4 billion in revenue in China in fiscal year 2021, which ended in September 2021. This represents a 27% increase from the previous fiscal year and accounts for roughly 15% of Apple's total revenue.
Apple's iPhone is the company's biggest product category in China, accounting for more than half of its revenue in the country. However, Apple has also seen growth in other areas, including wearables and accessories, services, and iPad and Mac sales.
While Apple has experienced significant growth in China, it has also faced challenges in the country, including increased competition from local smartphone manufacturers and regulatory issues. In recent years, Apple has had to navigate stricter regulations on data privacy and security, as well as increased scrutiny from Chinese regulators on issues such as app store policies and antitrust concerns.
Despite these challenges, Apple remains committed to the Chinese market and has continued to invest in the country, including opening new retail stores and launching new products and services specifically designed for Chinese consumers.
This chart shows China's impact on Apple's global sales.
Having gone from major growth driver to weak spot before, Apple's Greater China business has once again proven to be the proverbial banana skin on the company's road to another record-breaking holiday quarter.
When Apple CEO Tim Cook announced a downward revision of the company's revenue guidance for the December quarter, he attributed "most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline" to iPhone, Mac and iPad sales across Greater China. In his statement, Cook blames China's recent economic slowdown and rising trade tensions between the United States and China for Apple's lackluster performance in the country but the high prices of Apple's latest flagship iPhone models may have also played a part.
As the chart above shows, Apple's China business has grown nearly twenty-fold since the company entered the Chinese phone market in 2010. In Apple's fiscal year 2018 (which ended September 27), Greater China accounted for 20 percent of the company's revenue, virtually unchanged compared to the year before.
[ Related: Cook Points to China for Apple's Lackluster Q1 | Apple's Services Segment Continues to Grow | Apple's Market Decline In Perspective ]
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