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Chronicles

The story behind the story

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Apple's Q4 sales in Greater China rose 83% to $14.56B, Americas up 20% to $36.82B, Europe grew 23% to $20.79B, and paid subscriptions grew to 745M, up 160M YoY

Tiernan Ray / ZDNet : Tweets: @asymco , @neilcybart , @neilcybart , and @asymco Tweets: Horace Dediu / @asymco : Apple is 5-6 quarters away from 1 billion paid subs. Could happen even sooner. Neil Cybart / @neilcybart : Apple revenue in Greater China up 83%! Wow. The Apple ecosystem continues to gain momentum in China. Neil Cybart / @neilcybart : I would also ask about China. We know iPhone sales were bonkers during the quarter (83% revenue growth). Did Apple prioritize iPhone 13 Pro supply for the Greater China channel? I suspect yes. Horace Dediu / @asymco : Apple TV+ is the oddest thing Apple has ever done. I still can't believe they had to do this. A hardware/software/engineering/ technology/AI/services/silicon company should not have to make movies.

ZDNet Tiernan Ray

Context & Ripple Effects

This quarter extends an accelerating China arc: Greater China grew 58% YoY to $14.76B just three months earlier, and the 83% surge to $14.56B makes it Apple's fastest-growing region for a second consecutive quarter — a rhythm reminiscent of 2015, when China quarters printed 99% and 112% growth on iPhone strength.

The quieter headline is the subscription base: 745M paid accounts, up 160M YoY from the 700M reported in July, with Horace Dediu calling 1 billion five to six quarters out — the metric that converts Apple's hardware install base into recurring revenue.

First-order effects

  • Greater China's 83% jump prompts Neil Cybart's supply question — whether Apple steered scarce iPhone 13 Pro units toward the Chinese channel, where demand ran hottest.
  • At 745M paid subscriptions, Dediu's 1-billion projection stays on schedule, making Services growth the number investors will track more closely than any single region's hardware line.

Second-order effects

  • The subscription climb extends the recurring-revenue engine Apple has been building since record App Store, Music, iCloud, and Apple Pay quarters in 2018, smoothing the regional volatility between Americas (+20%) and China (+83%).
  • Broad-based growth — Americas +20%, Europe +23% alongside the China spike — means Apple enters the iPhone 13 cycle without depending on any single geography, squeezing rivals who need a strong holiday season in precisely the markets Apple is compounding.

Third-order effects

  • If the subscriber trajectory holds — it reached 860M by mid-2022 — Apple's model completes its shift from unit-driven hardware cycles to install-base monetization, where every device sold carries rising recurring revenue over its life.
  • China's surge echoes the 2015 hypergrowth phase that eventually normalized to a still-enormous base; the follow-on quarter bore that out at +21% to $25.8B, suggesting 83% was a reopening spike rather than a new baseline.

The trend: Apple is converting regional hardware surges into a compounding paid-subscription base, with Greater China supplying the sharpest swings on top of steady services growth.

Discussion

  • @neilcybart Neil Cybart on x
    Apple revenue in Greater China up 83%! Wow. The Apple ecosystem continues to gain momentum in China.
  • @asymco Horace Dediu on x
    Apple is 5-6 quarters away from 1 billion paid subs. Could happen even sooner.
  • @asymco Horace Dediu on x
    “Apple active installed base of devices at a new all-time high.” They keep saying this. There must be a reason...
  • @neilcybart Neil Cybart on x
    I would also ask about China. We know iPhone sales were bonkers during the quarter (83% revenue growth). Did Apple prioritize iPhone 13 Pro supply for the Greater China channel? I suspect yes.
  • @asymco Horace Dediu on x
    Apple TV+ is the oddest thing Apple has ever done. I still can't believe they had to do this. A hardware/software/engineering/ technology/AI/services/silicon company should not have to make movies.