Tech giant Apple (AAPL) launched an online store on Tencent’s WeChat messaging app in China on Tuesday, the late✅st step in an effort to increase retail sales market share in the country.
KEY TAKEAWAYS
- Apple has launched an online store on China’s largest messaging platform WeChat and aims to sell its iPhones, iPads, and Macs to the 1.2 billion users of the app.
- This marks another push by the tech giant to increase sales in China after it live-streamed tips about its products earlier in May to drive sales.
- The tech giant also has an online store on Alibaba’s Tmall online marketplace and has been gaining smartphone market share in China in the past couple of years.
The Cupertino-based company will be able to sell its iPhones, Macs, and iPads to 1.2 billion users on WeChat. The offering will be made through WeChat’s mini-programs, where the messaging platform provides services ranging from e-commerce to streaming and payment services. Chinese customers can also access Apple’s trade-in programs from the WeChat marketplace, CNBC reported.
Apple Wooing Chinese Consumers
Apple tried expanding its retail services in China in May by live-streaming tips to use its products and their capabilities to attract consumers.Apart from its own physical stores, Apple also operates an e-commerce store on Alibaba Group's (BABA) Tmall online marketplace. JD.com (JD), China’s second-biggest e-commerce giant, is also an ofꦦficial reseller of Apple products in ♐the country.
Apple has been gaining smartphone market share in China in the last couple of years. The company had a 20% market share in the first quarter of this year, up from 18% over the same period last year, according to Counterpoint research.
Shifting Production Away From China
On the production side, Apple is slowly moving away from China to diversify its supply chains, per TechCrunch. The company aims to move a quarter of its iPhone production to India and 20% production of iPads and Apple Watches to Vietnam by 2025.
Earlier this year, Apple opened its flagship stores in India to drive retail sales in the country. The company also hit a 澳洲幸运5官方开奖结果体彩网:$3 trillion market cap last month, becoming the first company on♏ the planet to do so.
Apple reported revenue of $94.8 billion in its second quarter earnings (ending 31 March) compared to $97.3 billion, a 3% decrease year-over-year.