Apple Sales in Greater China See Impressive Growth
Apple's 1Q16 Results: Revenues Miss, EPS Beats, iPhone Flat
Sales rose 14% in Greater China
As you can see in the graph below, Apple’s (AAPL) revenues in China (FXI) rose 14% YoY (year-over-year), from $16.1 billion in fiscal 1Q15 to $18.4 billion in fiscal 1Q16. Revenues from Greater China include China, Hong Kong, and Taiwan (EWT).
The United States continued to be Apple’s largest market, generating revenues of $29.3 billion in fiscal 1Q16. But that was a 4% fall in revenues YoY compared to fiscal 1Q15. Revenues from Europe and Asia Pacific rose 4% to $17.9 billion and $5.4 billion, respectively in 1Q16. Revenues from Japan saw a significant fall of 14% to $4.8 billion.
Currency headwinds impacted revenues
Apple also provided supplemental information in its earnings report for the first time. It showed the impact of currency fluctuations on revenues. According to Apple, $100 of revenues generated from overseas markets is worth only $85 today. Revenues would have increased 8% or by $5 billion YoY on a constant currency basis.
On a constant currency basis, revenues from China increased 17% YoY. Revenues from Europe increased 18%, and revenues from Japan fell 4% in fiscal 1Q16.
Apple generates more than 60% of its revenues from non-US markets. So its revenues might fluctuate drastically due to currency headwinds. It will be interesting to see the performance of other firms in the tech sector, including Samsung (SSNLF) and Lenovo (LNVGY), and how their revenues will be impacted by currency fluctuations in the last quarter.
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