Apple CEO Tim Cook described China as ‘the most competitive market in the world’ when reporting lackluster first-quarter business results on May 2, under pressure from Huawei.
Apple has just announced its business results for the first three months of the year. Accordingly, revenue decreased by 4.3% over the same period in 2023, to 90.75 billion USD. iPhone sales decreased 10.5% to 46 billion USD, mainly due to decline in Asia.
Apple’s first-quarter revenue was relatively lackluster. Photo: Reuters
Mainland China – including China, Hong Kong and Taiwan – recorded an 8.1% year-on-year revenue decline, to $16.4 billion. However, CEO Tim Cook still expressed optimism about this market in the long term. He also mentioned his “wonderful trip” to the country earlier this year and said the reaction to the new retail store in Shanghai had been “very warm”.
However, the head Apple acknowledged the challenges the company faces in China, including fierce competition. According to research firm Counterpoint, iPhone sales in this country decreased by 19.1% in the first quarter because Huawei’s comeback directly affected the high-end segment. Meanwhile, Huawei sales increased sharply by 69.7% in the context of the general market increasing by 1.5%.
Dan Ives, Director at Wedbush Securities, commented that the good news for Apple is that the iPhone 16 equipped with AI features can bring the “defective apple” back to growth in fiscal 2025. He called Huawei’s launch of the phone 5G phones and the lackluster iPhone 15 upgrade cycle are “dark clouds” for Apple.
At the business results meeting, Tim Cook said Apple achieved record revenue in Indonesia during the same period and called the Southeast Asian country the “one of many markets where we continue to see great potential.”
His comments came after a visit to Indonesia and Vietnam in April. In India, sales also grew by double digits and set a new record in the quarter.
Also during the meeting, Apple hinted at new products using AI. “We feel very optimistic about the opportunity and generative AI,” TimCook said. “We are investing significantly and look forward to sharing some very exciting things with our customers soon.”
(Theo Nikkei)
