Apple Inc. (NASDAQ:AAPL) recently entered the Chinese market officially and intrusively, strategically partnering with UnionPay and China Mobile to extend the reach of its Apple Pay and iPhone 6 and 6 Plus. The company has enjoyed enormous demand for its services and devices in the country, and China has now become the largest market for Apple in the world (according to credible source figures). Now, it is being reported that the company is taking over the hearts of the people as well. According to a recent survey, the company is beginning to enjoy a considerable fan loyalty in the country.
Apple Inc. is currently the largest company in the tech industry, all over the world. The company is on the verge of crossing the $700 billion market cap mark, which no other company has ever crossed. The only company that stands the closest to Apple Inc. is Exxon Mobil, which boasts a market capitalization of $375.86 billion.
Now, the company is set to grow even further, as the Chinese market seems to have finally incorporated the company into its ecosystem. According to recent survey reports, devices by Apple Inc. have become the most preferred gift items to give to loved ones by the Chinese. The general tradition in China is to give luxury items (or items considered as luxuries) as gifts. Now, as Apple Inc. devices are considered as luxury items in the Chinese market, they are the most sought after gifts.
And this luxury status means the company has finally settled in the Chinese market, which means only further growth and expansion by Apple Inc. in the country. China is, perhaps, the biggest market in the world (considering the size of its population), and for Apple to become a luxury item in the same (and where there is a greater tradition to give expensive gift items), the future looks very bright for the company.
Apple shares have been performing relatively well in the past couple of months, ever since the company signed deals with UnionPay and China Mobile in the fourth quarter of 2014. The company, due to this surge in sales due to the entrance in the Chinese market, reported the biggest quarter in Q4 2014, reporting a revenue profit figure of $18 billion, the largest reported by any company in the industry.
The company currently runs 15 stores of a retail nature in different parts of China, most of them located in Beijing and Shanghai, the biggest cities in China.
The upcoming Apple Watch, which is expected to launch in March of this year, will surely benefit from this persistent mindset in the Chinese market. Neil Shah, an analyst working for Counterpoint (a research firm based in Hong Kong), is of the same opinion. According to him, “Apple’s positioning in Chinese consumers’ minds is getting stronger. Apple Watch should definitely benefit from this position”.
With the upcoming Chinese New Year, all eyes would be on Apple Inc. (NASDAQ:AAPL) sales in China. The company, with its newly acquired luxury status in the country, is surely expected to break holiday season records in the country.
