Apple iPhone sales in China jump ahead of iPhone X, report says

When Apple reports quarterly earnings later This specific week, there may be a surprising bright spot: China.

According to estimates coming from Canalys, Apple’s smartphone shipments to China increased to 11 million units coming from 8 million a year earlier, due to lower prices on older iPhones. The jump follows six straight quarters of declines.

China has become one of the most competitive markets inside the earth for smartphones. In August, Apple reported that will sales in greater China dropped 10 percent coming from the prior year.

While Chinese brands like Huawei, Oppo, Vivo as well as Xiaomi have struggled to gain traction inside the U.S., they all outpace Apple in terms of units sold in China, according to Canalys estimates. Chinese consumers also use apps like WeChat to perform some of the functions of Apple’s operating system.

Apple, which reports fiscal fourth-quarter financials on Thursday, typically breaks out revenue by region, although for the number of devices sold, the item provides only a global figure.

CEO Tim Cook said a year ago that will China would likely be a key to Apple’s growth going forward. Earlier This specific year, the company promoted Isabel Ge Mahe to a fresh position as Apple’s vice president as well as managing director of greater China, reporting directly to Cook as well as Chief Operating Officer Jeff Williams.

“We are very bullish on China,” Cook said on the fourth-quarter earnings call last October. “We continue to see a middle class that will’s booming there.”

However, Canalys is actually skeptical that will its forecast of almost 40 percent growth in iPhone units in China is actually sustainable. One reason is actually that will the company is actually entering the highly competitive holiday season using a brand fresh phone — the iPhone X — that will’s expensive as well as reportedly facing supply issues.

“Apple’s growth This specific quarter is actually only temporary,” Mo Jia, an analyst at Canalys wrote. “While the iPhone X launches This specific week, its pricing structure as well as supply are inhibiting.”

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