China finally overtakes U.S. in iPhone sales, Chinese revenue up 71%.

Hangzhou Opens Second Apple Store

Pundits have been predicting for several successive quarters that iPhone sales in China would outstrip those in the U.S., and Q2 2015 was when it finally happened, reports Reuters.

Apple […] sold more iPhones in China than the United States for the first time […] increasing its revenue in the country 71 percent to $16.8 billion, although that was helped by gift-buying for Chinese New Year.

Tim Cook said that the iPhone was responsible for the bulk of Apple’s revenue in China, though he did also note that Mac sales were “unbelievable,” up 31% year-on-year. As with other markets, the iPhone is usually the first Apple product people buy, but that brings them into the ecosystem and boosts sales of other products …

Cook reported that App Store revenue in Greater China doubled over the past 12 months, and that almost $5B had been paid to Chinese developers in total, more than half of it in the past year.

The Apple CEO also reiterated Apple’s plan to increase its retail presence in the country to 40 stores by mid-2016, noting that they were now more than halfway there, at 21 stores. Online Apple Store revenues have tripled year-on-year, and by next quarter the company will offer 2-day delivery to 365 cities in the country.

Cook said that adding Union Pay to payment methods for the Chinese App Store was helping Apple to significantly expand the ecosystem in the country, though it was recently reported that issues with Union Pay and bank negotiations was delaying the local launch of Apple Pay.

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