A Wednesday report predicts that Chinese consumers will be spending more than $87 billion on mobile phones in 2014. This means that revenues in the Asian mobile market will surpass those in the U.S., as Apple plans on expanding the Chinese retail market. However, the U.S. revenue in mobile phones is not too behind China’s, forecasting about $60 billion this year according to Strategy Analytics predictive firm. This represents a 15% year-over year increase in China, meanwhile the U.S. stays relatively the same.
Strategy Analytics senior analyst Woody Oh states, "China's impressive mobile growth is being driven by the country's rapid shift to 3G and 4G smartphones."
Apple plays a huge role in the mobile market in China, as the iPhone is responsible for almost half of the 2.8 million 4G subscribers on China Mobile, which is the world’s largest wireless carrier. The iPhone also helped boost 3G revenues by almost 30% for a smaller carrier in China, China Telecom. Strategy Analytics executive director, Neil Mawston has stated:
The United States is maturing and has now lost its crown to China as the world's largest mobile phone market by revenue. However, it is important to remember the US remains by far the mobile industry's most valuable country by profit.
We plan to triple the number of Apple Retail Stores [in China] over the next two years. We're continuing to expand in online. We're continuing to build out channels. We're up to 40,000 points of sales now in iPhone, but we're not nearly where we need to be on the rest of our product line and even the 40,000 is a low number in considering the broad landmass and the number of folks in China. And so, I feel like there's still loads of opportunity there, and feel really, really good about how we're doing.