It was announced by Apple Inc. (NASDAQ:AAPL)’s Chief Executive Officer Tim Cook that the company over the period of next two years will open 25 more stores in China.
There is no doubt about the fact that Apple Inc. (NASDAQ:AAPL) has been making efforts to create a strong foothold in one of the strongest smartphone markets in the world; China. The world’s most populous country has been the center of focus for many big tech names in the industry; especially smartphone brands. However the Chinese market is currently ruled by its local smartphone manufacturers and low-end smartphone developers. Despite this fact Apple Inc. (NASDAQ:AAPL) is determined to pursue its ambition of conquering this region. The company fully understands the value of creating a position for itself in the Chinese market, which can help increase the tech giant’s sales figures and revenue in the future. That is why Apple Inc. (NASDAQ:AAPL)’s CEO Tim Cook made the all important announcement revealing that the company will open 25 more retail stores in China in the next two years. These stores will be opened in Mainland China, Taiwan and Hong Kong. With these 25 stores the total number of Apple retail stores in the region will go up to 40.
Why is China so important to Apple Inc. (NASDAQ:AAPL)? Currently Apple Inc. (NASDAQ:AAPL) depends on Greater China for 15% of its total revenue with just 15 retail stores in the country. Apple’s 2014’s fourth quarter revenue from China was recorded at $5.8 billion. Currently China is Apple’s second largest market right after the United States. The company’s latest iPhone 6 had a tremendous response and sales in China; the pre-orders alone reached a figure of 20 million within the first three days. This response from the Chinese consumers has given the tech giant every reason to increase its presence in China. Therefore with more stores the company is hoping to bump up this percentage in the future.
In an interview given to Sina, Tim Cook stated that Apple Inc. (NASDAQ:AAPL) is busy investing in the market like “crazy”. He considers China a huge opportunity for his company’s growth.
Tim Cook has made several visits to China and his latest visit included his tirp to Apple Inc. (NASDAQ:AAPL)’s Zhengzhou based iPhone factory Foxconn Technology Co’s (2354.TW); he also inspected Chinese based retail operations.
Tim Cook also had a meeting with Ma Kai, the Chinese Vice Minister, on Wednesday where the two discussed user data and information protection and talked about improving cooperation between China and Apple Inc. (NASDAQ:AAPL). It seems that Apple Inc. (NASDAQ:AAPL) is leaving no stone unturned to establish itself as the leading tech player in China; according to Tim Cook the company is collaborating with Alibaba Group Holding (NYSE:BABA) and Baidu (NASDAQ:BIDU) as well. Cook has a meeting scheduled on Monday with the chairman of Alibaba Jack Ma.
Tim Cook is having a busy week in China; he along with Facebook Inc. (NASDAQ:FB)’s Mark Zuckerberg and other business leaders will attend meetings as a member of advisory council of School of Economics and Management at Beijing based Tsinghua University.