The Accessory Market for the iPhone 6 is $1 Billion in China

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A customer purchases the newly released iPhone 6 in a mobile phone shop in Moscow September 26, 2014. Official sales of Apple's iPhone 6 and iPhone 6 Plus started at midnight on Friday across major cities in Russia, according to local media.
A customer purchases the newly released iPhone 6 in a mobile phone shop in Moscow September 26, 2014. Official sales of Apple's iPhone 6 and iPhone 6 Plus started at midnight on Friday across major cities in Russia, according to local media. Reuters/Maxim Shemetov

Apples biggest market for its devices is China. The whole country was eagerly waiting for the release of the device and before it could be cleared by the regulatory board the handset sold like sweets. When the iPhone 6 and iPhone 6 Plus was officially launched in the country sometime last week it broke all sales records by selling 1 million units on pre-orders alone in the first 6 hours. Now, interest in accessories related to this device has risen to an exceptional level making it a billion dollar market.

China Business News on Monday reported that Zhang Hua, from a Shenzhen based accessory manufacturer stated that the factory delivers almost 20,000 iPhone 6 cases every day. He also goes on to state that the demand is too huge to meet especially this time. According to him, the daily output for the iPhone 6 cases have more than doubled from the company's 8000 to 9000 shipments a day last year when the iPhone 5S and iPhone 5C were launched in China.

This could be because of the record sales of the iPhone 6 and iPhone 6 Plus in China. Bigger manufacturers of the iPhone 6 cases reported that they are able to ship 100,000 cases for the latest devices of Apple in recent days.

Before the iPhone 6 and 6 Plus could be released in the market pre-orders began and reached 20 million in the country according to media reports from China.

There are around 3,000 small and medium scale industries that specialize in making a wide range of accessories for the Apple products in the province of Guangdong alone. These products include Apple speakers, leather iPhone cases and Apple's charging cradle. This alone adds up to a $1.3 billion market every year in China reported the China Business News.

These accessories are pretty expensive in China. The TPU silicon skin is above 20 yuan that would be $3.30 this is 5 times its manufacturing cost which is just 4 yuan per piece. Though the competition in the Chinese market is very severe, due to huge profit margins these manufacturers are able to maintain growth according to reports.