Apple looks to fuel services growth in China - Mobile World Live

Apple looks to fuel services growth in China

10 JUL 2019

Apple launched a new initiative in China to help developers in the country create apps, as it looks to further boost its Services business in what is considered a key market.

Reuters reported Apple will hold lectures, and offer developer workshops and networking sessions as part of CEO Tim Cook’s attempts to boost the business unit.

The Services business covers apps, media and other software and has been heralded by Cook, particularly for its progress in China. It is currently particularly important for the company in terms of helping offset declining iPhone revenue.

Reuters said Apple currently has more than 2.5 million developers for its platforms in greater China.

The launch of the programme is also an indication that Cook is confident Apple will be able to maintain good relations with China despite ongoing trade tensions with the US.

Apple made a similar play in India in 2017.

Uptake of Android-powered devices dominate in India and China due to their lower cost, but Apple has launched schemes to make iPhones more affordable and attractive.

Q3 predictions
Speaking to Reuters, analyst company Evercore ISI Research tipped Apple’s Service revenue to have surged in its fiscal Q3 (the period to end-June), driven by App Store developer gains and growth in China.

In fiscal Q2, the unit accounted for 20 per cent of Apple’s total $58 billion revenue, a 16 per cent increase year-on-year.

Evercore ISI Research analyst Amit Daryanani predicted App Store developer revenue alone will be up 18 per cent year-on-year in fiscal Q3 to $9 billion.

“We think there is likely upside ahead when it comes to services revenues in the June-quarter, driven by a sizeable acceleration in China-centric markets,” said Daryanani.

Apple is due to report its figures on 30 July.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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