Apple has overtaken designer goods maker Hermes International SCA to take the number one luxury gifting spot in China, according to a new report. This follows the rise in demand for the latest iPhone in the country, which led to a 157 percent increase in Apple revenue last quarter.
Apple’s high prices make its Macs and iOS devices luxury goods in emerging markets like China, but they’re becoming incredibly popular among those who can afford them. Sales in China have skyrocketed so much in recent months that they just helped Apple to its most profitable quarter ever.
While spending on gift-giving in China decreased by 5 percent overall in 2014, and by 25 percent the year before that, Apple still managed to rise and take the top spot in luxury gifting, according to a Hurun luxury report.
One of the reasons for the decline is the increase in spending abroad. Hurun Report Chairman Rupert Hoogewerf revealed that seven out of ten luxury good purchased by the Chinese are now being bought overseas.
Hermes, which was number one in 2013, dropped to seventh last year, while Moet Hennessey Louis Vuitton SE took second place, and Kering SA’s Gucci and Chanel took third.