Apple Inc posts £15billion operating income

Apple CEO Tim Cook said China will become Apple’s largest market. Apple Inc sales in China surged 84 per cent in the last fiscal year, but profits are growing even faster. Cook also said  30 per cent of iPhone buyers in the past quarter switcher over from an Android device , anticipating this the company even released an Android app called “Move to iOS” to make android users easier to migrate. Apple’s launch of its own monthly payment financing scheme for the iPhone was one of the biggest surprises at its product launch back in September 2015. Instead of buying upfront or through a mobile operator, customers can now get a new, connected iPhone direct from Apple, not only pay for it in instalments but also get free upgrades to the latest model after a year, in exchange for the original phone.

In the Fiscal year ending Sept 26, Apple posted an operating income of $23 billion in greater China, including Hong Kong and Taiwan, which is more than double its profit of $11.04billion in the previous year. Apple’s operating margin leaped to 39 percent in Greater China from 35 percent last year and 31 percent in 2013.

The reason for Apple performance lies in the successful sale of iPhones in China and also the Chinese tend to buy products with additional storage which tends to be more profitable than those with less storage.

Apple said it plans to increase the number of Apple stores in China from 25 to 40 by 2016.