Apple Inc. (NASDAQ:AAPL) is looking to significantly grow its nearly $30 billion revenue from China, and in this connection has made a deal with UnionPay, which is the only domestic bank card organisation in China. Liz MacDonald reported the news on Fox Business.
“Apple Inc. (NASDAQ:AAPL)’s Tim Cook has inked a deal with China’s biggest bank and debit card and credit card company. It’s called UnionPay that dominates the space here in China. 4.5 billion cards in China are issued by UnionPay. UnionPay is hooking up with Apple’s pay system to let their consumers basically shop on Apple’s App Store. China is a growing slug of Apple’s revenues here, it is made up of 16% of Apple’s sales in the fourth quarter […],” reported MacDonald.
Apple Inc. (NASDAQ:AAPL) earns substantially more revenues from its App Store than its rival platform Android, on a per customer basis. The recent move will help the company extend that lead as it eases payment for millions of its customers in China.
When Tim Cook, Apple Inc. (NASDAQ:AAPL)’s CEO announced his intentions to solidify the company’s grounds in China a few years ago many criticized his move. There were quite a few reasons for this which ranged from a strong Android presence to a number of cheap smart phone manufacturers already operating in China. Being the world’s largest country, population wise (not the most densely populated country though), China did have some of its advantages.
As MacDonald mentioned, China is already contributing significantly to Apple Inc. (NASDAQ:AAPL)’s top line. It will be interesting to find out how much does this partnership with UnionPay goes on to fatten the world’s largest company’s bottom line.
Despite, getting a bump in the price target from RBC today, Apple Inc. (NASDAQ:AAPL) is currently down about 0.27 for the day right now and is trading at $113.8.
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