Apple Inc. (NASDAQ:AAPL)’s hot streak in China at the back of impressive demand for iPhone 6 has seen it topple designer goods maker, Hermes International, for the top spot as a luxury gifting brand according to Reuters. The news comes in the wake of the company posting record first quarter earnings enabled by a 70% jump in sales in China.
The Hurun Report that ranks Apple Inc.(NASDAQ:AAPL) as the best in terms of luxury gifts offerings is normally carried out on close to 400 millionaires all of whom have a personal wealth of 10 million Yuan. The rise to stardom in the list comes as a surprise considering prices for Apple’s devices that are normally considered high-end.
Focus on glitzy stores as well as targeting the higher-end market with a high price tags for devices was more than enough in taking the first spot at the expense of Hermes International. 2014 was a good year for Apple Inc. (NASDAQ:AAPL) on the gift-giving front despite spending’s on gifts in China going down by 5% but better than a 25% drop in 2013.
The decline in spending on gifts has had to do with the fact that regulators in Beijing have been cracking on corruption and luxury spending especially on public officials. The Crackdowns only went to harm spending in China as more people opted to spend overseas to avoid detection.
Apple Inc.(NASDAQ:AAPL) taking the first place on the luxury gifts end meant Hermes dropped to the seventh position with LVMH Moet Hennessey Louis Vuitton coming in second. Apple coming tops does not come as a surprise as iPhone 6 and iPhone 6 Plus remained the key talking point for the better part of last year with the company still commanding strong demand until now.
Apple success especially in China has been attributed to it embracing large screen phones that come packed with LTE technology, which remain key to the Chinese population. The rise to the top was also aided by the fact that Samsung did not produce any product to rival iPhone 6.
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