Apple CEO: China Will Be Biggest Market

BEIJING (AP) -- Apple (NASDAQ: AAPL  ) expects China to overtake the United States as its biggest market, CEO Tim Cook told a Chinese government news agency.

"China is currently our second largest market. I believe it will become our first. I believe strongly that it will," the Xinhua News Agency quoted Cook as saying in an interview.

The report gave no details of when Cook thought China might pass the United States. Apple spokespeople in China did not immediately respond to a request for comment.

Apple has said sales in China more than doubled in 2010 and 2011 though growth has slowed in the past year.

Apple's iPhones, iPads, and other gadgets are popular with China's highest-earning consumers, but its fast-growing smartphone market is dominated by handsets that use rival Google's (NASDAQ: GOOGL  ) Android system.

Cook was in Beijing to meet with Chinese regulators and managers of state-owned China Unicom, the first Chinese carrier to support Apple's iPhone.

Xinhua said Cook did not respond to rumors Apple might be developing a lower-cost iPhone for developing markets such as China.

Also in Beijing, Cook met the chairman of China Mobile (NYSE: CHL  ) , the world's biggest phone carrier, with more than 700 million subscribers. China Mobile has no agreement to support the iPhone, and adding it as a partner would help Apple increase its appeal in China.

China Mobile chairman Xi Guohua and Cook discussed "bilateral cooperation," the phone company said in a statement. It said release of other details was barred by a confidentiality agreement between the companies.

China Mobile says its network already is used by several million customers who brought in unlocked iPhones from abroad.

Apple opened a multistory flagship store on a prominent corner in Beijing's busy Wangfujing shopping district in October, raising its number of mainland retail outlets to 11. Independent stores also resell Apple products.

According to Xinhua, Cook responded to complaints about wages and other work issues at Foxconn (NASDAQOTH: FXCNY  ) , the Taiwanese company that assembles Apple's products in vast factories in China, by saying his company enforces strict codes of conduct for its suppliers.

"We care very deeply about every worker that touches an Apple product, whether they are making it, selling it, serving it or marketing it. We hold ourselves to a very high standard there," he was quoted as saying.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2191488, ~/Articles/ArticleHandler.aspx, 11/26/2014 11:20:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement