CEO Tim Cook confirms the success of the commercial operations
This time China is helping Apple. CEO Tim Cook, in fact, confirmed that Apple shares have increased by 4.4% in recent days thanks to a “marked improvement in big China”. The result also came after the company’s financial results for the third fiscal quarter beat Wall Street estimates.
The result of Apple is particularly important, the American company, in fact, has seen the demand for the iPhone diminish following the strong competition from Chinese challengers like Huawei and Xiaomi. However, Apple’s measures to increase sales, including price cuts, have borne fruit.
Apple’s revenues across China fell by 4% to $ 9.2 billion in the third fiscal quarter
In particular, as stated by market research firm Canalys, iPhone sales in China fell by almost a third in the first quarter of 2019 to 6.5 million units, marking the company’s biggest decline in two years. From here Apple decided to cut the price of some models on the Chinese e-commerce platform JD.com in January, reaching up to 800 RMB ($ 116).
Apple’s revenue throughout China – a territory that includes mainland China, Hong Kong and Taiwan – fell by 4% to $ 9.2 billion in the third fiscal quarter ended June 29, after falling 22% in the second quarter.
Tim Cook told CNBC that the reduction in value added tax in China from 16% to 13% has been a great help, and has not seen any signs of a boycott of Apple products in the country following commercial tensions with the US.
Trade tensions between the United States and China have made Huawei the “patriotic choice” in the country
At the same time, shipments of Apple smartphones in China fell by 14% after hitting 5.7 million units in the second quarter, according to Canalys.
Although smartphone shipments of Chinese competitors Oppo, Vivo and Xiaomi have collapsed, while those of Huawei have increased by 31%. Analysts have claimed that trade tensions between the United States and China have made Huawei the “patriotic choice” in the country.
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