- Tim Cook tried to rejoice in demand for the iPhone in China during Apple’s earnings conference call.
- Apple faces increased competition from Huawei, which launched a new phone in China in September.
- Apple shares were lower in after-hours trading following a fourth straight decline in quarterly revenue.
China appeared to be the topic on Wall Street analysts’ minds during Apple’s earnings conference call Thursday.
Apple CEO Tim Cook was repeatedly asked about demand for the company’s products in China during the earnings call, amid reports that iPhone 15 sales have kicked off more slowly amid increased competition from rival Huawei and growing tensions between the United States and the Chinese government. which would have banned government officials from using iPhones.
Cook said he was “very optimistic” about the company’s long-term prospects in the Chinese market and highlighted record iPhone sales in the most recent quarter, which ended September 30. , although he declined to talk much about demand for the iPhone 15 in the region. in the current quarter. Apple stopped issuing formal guidance for the next quarter during the pandemic and instead mentions certain data points during the earnings call.
Apple posted its fourth consecutive quarterly decline in overall revenue, although overall iPhone revenue rose and its services revenue hit a record high.
“In the September quarter, we set record iPhone sales in China and we are very proud of that,” Cook said. “In the long term, I see China as an incredibly important market and I am very optimistic about it,” he added.
Apple’s quarterly revenue in the Chinese market, which saw a slight year-over-year decline, fell short of Wall Street’s expectations. Revenue from China reached $15.1 billion last quarter, up from analyst expectations compiled by Bloomberg of 17 billion dollars.
The technology company faces a unpredictable market for the iPhone in China. The Chinese government would have bans imposed on the Apple smartphone for certain government employees. He also has spear a tax investigation into Foxconn, Apple’s main iPhone supplier.
The tech company also faces strong competition in the country from Huawei Technologies, which recently launched a new smartphone that was a success. success in China.
And there are already signs that the iPhone 15 might not work well in China. Counterpoint Research Analysts in October told Bloomberg in October, they estimated that iPhone 15 sales in China were down 4.5% during the smartphone’s first 17 days on sale, compared to the iPhone 14 during the same period. Market research firm GfK also told the publication that it estimates sales of the iPhone 15 were down 6% in its first month on sale in China.
Apple stock was down more than 3% after hours Thursday.
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