Apple’s growth slowed down in the first quarter of 2016 fiscal year, but Apple products such as the Apple Watch remain popular in China. About 1.81 million Apple Watches have been activated in China as of last November, a report by mobile big data analyst TalkingData said.
Apple recorded its lowest revenue increase in 13 years and the slowest iPhone sales growth ever in the first quarter of 2016. The company reported USD 75.9 billion in revenue, up 2% from USD 74.6 billion in the same period last year. It sold 74.8 million iPhones during this quarter, a 0.4% increase from 74.5 million a year earlier, according to Apple’s latest earnings report .
However, Apple Watch sales in China has been growing steadily. Activated devices totaled 420,000 in May and exceeded one million in August. Month-on-month growth peaked at 62.5% in June.
Global sales of the Apple Watch reached seven million six months after its launch, outselling all of its competitors combined, a November report from Canalys said.
Apple Watch attracts Chinese consumers primarily because the country’s purchasing power is increasing. One third of the global sales volume for high-end bags, watches, and jewelry came from Chinese consumers in 2015. By 2022, over 75% of China’s urban consumers will earn RMB 60,000 to 229,000 (USD 9,000 to 34,000) a year, a report by McKinsey & Company said.
The Apple Watch is considered a symbol of higher social status among Chinese people. Apple was the top luxury brand to give as a gift in 2015 in China, according to a report by luxury research group Hurun Research.
The Apple Watch also attracted a large number of Apple fans who worship any product from the company. Sports lovers chose Apple Watch for its health tracking features and iPhones users prefer the Apple Watch for convenience.
Motivated by strong sales in China, Apple launched two exclusive Apple Watch models for Lunar New Year to satisfy the holiday gift-giving demand.
The iPhone is also among the most popular products in China. iPhones sales in China outsold those in the U.S. last April.