Apple reported a surprise fall in sales in China. However, much to investors and the company's relief, the fall has not been due to the decline in demand. Apple reportedly blamed the surprise decline in China revenue on supply disruptions. According to a report in Bloomberg, Apple has predicted that the company will return to growth in the world’s biggest smartphone arena as the iPhone 17 gains momentum. Apple CEO Tim Cook said at the earnings call, “It was basically supply constraints that drove the results.” Cook added, “We’re thrilled with what we’re seeing right now.”
Apple CEO said that Apple’s store traffic is up significantly in China, and that the latest iPhones -- iPhone 17 series -- has been well received. Cook also said that Apple reached a new high for September-quarter revenue from services in China, while reiterating that the iPhone is doing very well.
According to the report, China was a prominent topic during the earning conference, with analysts asking about the region multiple times. The threat of higher tariffs has disrupted global tech supply chain that’s already in flux because of longer-term decisions to diversify away from China. Apple’s total growth projection for the December quarter is between 10% and 12%. Cook, however, didn't specify how much China would contribute to that.
Apple has seen stiffer competition from local brands in China. Reports suggest that Huawei Technologies took the top spot in June, as its campaign to reclaim a bigger share of the premium tier resonated with Chinese consumers. Xiaomi too is reported to have made a splash with its Xiaomi 17 series.
Apple iPhone sales
IDC estimates that 58.6 million iPhones were sold worldwide in the July-September quarter, putting Apple second behind Samsung at 61.4 million of their Android-powered phones sold worldwide in the quarter.
In a conference call with analysts, Tim Cook indicated his belief that the iPhone 17 lineup will continue to do well, predicting even more of the devices will be sold during the final three months of the year. “As we head into the holiday season with our most powerful lineup ever, I couldn’t be more excited for what’s to come,” Cook said. Apple expects its iPhone sales to increase at least 10% from last year's holiday season, according to projections provided by Apple's chief financial officer, Kevan Parekh. Total revenue is expected to rise at a similar rate.
Apple CEO said that Apple’s store traffic is up significantly in China, and that the latest iPhones -- iPhone 17 series -- has been well received. Cook also said that Apple reached a new high for September-quarter revenue from services in China, while reiterating that the iPhone is doing very well.
According to the report, China was a prominent topic during the earning conference, with analysts asking about the region multiple times. The threat of higher tariffs has disrupted global tech supply chain that’s already in flux because of longer-term decisions to diversify away from China. Apple’s total growth projection for the December quarter is between 10% and 12%. Cook, however, didn't specify how much China would contribute to that.
Apple has seen stiffer competition from local brands in China. Reports suggest that Huawei Technologies took the top spot in June, as its campaign to reclaim a bigger share of the premium tier resonated with Chinese consumers. Xiaomi too is reported to have made a splash with its Xiaomi 17 series.
Apple iPhone sales
IDC estimates that 58.6 million iPhones were sold worldwide in the July-September quarter, putting Apple second behind Samsung at 61.4 million of their Android-powered phones sold worldwide in the quarter.
In a conference call with analysts, Tim Cook indicated his belief that the iPhone 17 lineup will continue to do well, predicting even more of the devices will be sold during the final three months of the year. “As we head into the holiday season with our most powerful lineup ever, I couldn’t be more excited for what’s to come,” Cook said. Apple expects its iPhone sales to increase at least 10% from last year's holiday season, according to projections provided by Apple's chief financial officer, Kevan Parekh. Total revenue is expected to rise at a similar rate.
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