Apple CEO Tim Cook confident in China over long term despite second quarter sales drop
- The Greater China region, Apple’s third-largest market, was the only declining segment for Apple, which reported total revenue of US$85.8 billion in the quarter
Apple’s China sales fell in the June quarter, and although chief executive Tim Cook was optimistic about prospects over the long term, mainland Chinese sales will not get a boost from Apple Intelligence, which is not being rolled out to local users yet.
The California-based tech giant’s revenue in the Greater China region, which includes Hong Kong and Taiwan, was US$14.73 billion in the June quarter, a 6.5 per cent decline compared with the same period last year.
However, the company noted that over half the drop was due to foreign exchange fluctuations, and that the market declined less than 3 per cent on a constant currency basis. Sales for the Greater China region missed the average estimate of US$15.26 billion by analysts polled by Bloomberg.
Greater China, Apple’s third-largest market, was the only declining segment for Apple. The company’s total revenue reached US$85.8 billion in the quarter, beating analyst estimates.
Cook expressed optimism on the China market, which he described as “the most competitive in the world”, adding that he has seen improvements in the business environment in the first half of 2024.
“We continue to be confident in the long-term opportunity in China,” Cook said in a conference call with analysts on Thursday. “I don’t know how every chapter of the book reads, but we’re very confident in the long-term.”
Cook added that the mainland China market set a June quarter record for iPhone upgrades. “That’s a very strong signal,” Cook said on the call.
