A day before the company is set to announce earnings for its first fiscal quarter of 2015, Financial Times highlights a recent report suggesting Apple may report it sold more iPhones in China than in the U.S. for the first time ever.

According to analysts from financial firm UBS, China accounted for 36 percent of iPhone shipments in the most recent quarter, compared to 24 percent for the U.S. The analysts also compared the numbers to 2013, noting that a year before China accounted for only 22 percent of shipments with the U.S. at 29 percent.

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Creative Strategies analyst Ben Bajarin concurs with the UBS report, believing around 2 million more iPhones were sold in China than in the U.S. during the quarter. With the upcoming launch of the Apple Watch, he also believes it's just the beginning of the country's fiscal dominance over Apple sales.

“It’s already been a good year, building up to the climax of this quarter,” said Bajarin, referring to Apple’s momentum in the world’s largest smartphone market. “It leads to a lot more optimism for China . . . Their potential headroom in China is higher than it is here [in the US].

They will likely do more in China than US from here on out,” he said. “It certainly shows how important the China market is to Apple’s upside.”

Apple has been emphasizing the importance of China for the company for some time, most recently meeting with the Chinese government to discuss data privacy and security, partnering with popular mobile payment service Alipay, and planning multiple Apple Store openings like the one in Chongqing opening this week.

On the distribution front, 2014 most notably saw a partnership between Apple and the world's largest carrier, China Mobile. The partnership allowed iPhones to be sold in 3,000 more cities where Apple previously had very little presence, undoubtedly aiding the Cupertino-based company rising Chinese in recent quarters.

Related Forum: iPhone

Top Rated Comments

MH01 Avatar
122 months ago
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

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I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?

its a tool to communicate and consume data for most westerners. What your describing is faboys, most normal users do not cherish a device! If anything Asians, are more into tech than your average westerner.
Score: 7 Votes (Like | Disagree)
allpar Avatar
122 months ago
Regardless, none of those profits will benefit the U.S. Economy because the I.R.S. Is better at border patrol here than the I.N.S.

I.R.S.: "Don't let that money that was born in another country come to the U.S. to work for US. keep it in those other countries where it can't do us any good. That is, of course, unless you want to give us another 30% tax on your already taxed self."

The U.S. treats foreign revenue worse than the "Coyotes" treat foreign immigrants.

I just have to point out that the IRS only enforces rules made by Congress, and that Congress has cut their budget yet again.
Score: 6 Votes (Like | Disagree)
xionxiox Avatar
122 months ago
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

----------

I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?
This is prob not the best place for social science class.
Score: 5 Votes (Like | Disagree)
coolfactor Avatar
122 months ago
Reading this headline has me thinking "Finally, something to put Americans in their place!", but is China really that much better? :p

----------

I always wonder... do Asians cherish their devices like many of us Westerners do? Do they appreciate the design, the finesse, the elegance of a well-designed device, or is it just a tool to communicate and consume data?
Score: 4 Votes (Like | Disagree)
Jakexb Avatar
122 months ago
If it was just a thing to consume data, they'd buy one of the cheaper Chinese android handsets.
Score: 2 Votes (Like | Disagree)
ToroidalZeus Avatar
122 months ago
Regardless, none of those profits will benefit the U.S. Economy because the I.R.S. Is better at border patrol here than the I.N.S.

I.R.S.: "Don't let that money that was born in another country come to the U.S. to work for US. keep it in those other countries where it can't do us any good. That is, of course, unless you want to give us another 30% tax on your already taxed self."

The U.S. treats foreign revenue worse than the "Coyotes" treat foreign immigrants. No wonder the foreign immigrants still cross the border and none of the foreign BILLIONS makes it into this country. (And to think, ONE of the two got an Executive Order -- it wasn't the one that would HELP OUR ECONOMY though.)
It's complicated.

Apples effective tax rate because of all their tax dodging may be as low as 10%. In fairness a very successful corporation should have a tax rate above 40% (which is the highest income bracket) If Apple paid a "fairshare" of their taxes CA would have millions extra to invest into cash strapped systems like public education, The University of California.

On the flip-side it's been shown time and again that govt are incredibly wasteful. So I don't really blame corporations for not wanting to pay taxes.

In the end we the people suffer.
Score: 1 Votes (Like | Disagree)

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