Speculations are ripe that iOS will be making more money for Apple in China than in US and Japan. Markets in countries with limited populations seem to be saturating for tech companies like Apple and Netflix. But the good news for these companies is that populations in some of the Asian countries like China and India have limitless potentials when it comes to selling products and services.
90% of the revenue made by Apple App Store (which means devices running on iOS) comes from US, Japan and China, according to this TechCrunch link, but it’s the Chinese market that is going to underpin Apple’s earnings. In 2014 China was the second-largest country in terms of people downloading iOS apps and by 2015 Q1 it overtook the US and became the number one country. Between 2014 Q1 and 2015 Q4 the iOS downloads in China experienced a growth of 20%, primarily driven by Apple’s large screen iPhones 6 and 6 Plus, a market previously dominated by Samsung. People in Asian countries, especially in India and China, prefer mobile phones with larger screens and various consumer reports have solid data to prove this. The recent Christmas saw the large screen phone sale growing by 27% in China.
Although in terms of downloads Google Play Store has a massive lead over Apple App Store, Apple is able to make more money because unlike Android, there are less free apps available for iOS.