iPhone does well in China despite shrinking market
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After Apple's Q2 Earnings Revealed, C.E.O. Tim Cook said he feels “great” about China because it has exceeded expectations in a competitive environment.
Apple earned $90.8 billion in the March quarter, beating Wall Street estimates. In China, the company's sales fell 8% year-on-year, but despite the drop, it was less severe than originally expected.
The iPhone product has struggled to achieve significant growth in China due to increased competition from premium smartphone makers. However, things were much worse, and Apple CEO Tim Cook told CNBC live that he was focused on the long term.
“I am very pleased that, in an extremely competitive environment, we increased iPhone sales in mainland China last quarter,” Cook said. “This may come as a surprise to some… And that's why I'm feeling good about China and thinking more about the long term than the next week or so.”
China's smartphone market saw a significant decline in 2023, and Apple was one of the few companies least affected by the headwinds. Earlier data showed that the iPhone ranks first in market share in China for the first time ever.
During the conference call, Cook said that the best-selling smartphones in Chinese cities are the iPhone 15 and iPhone 15 Pro Max.
Apple's second-quarter earnings will have analysts focusing on the company's weaknesses as it prepares to announce new iPads on Tuesday. The 8% drop in China will likely be overshadowed by the overall iPhone decline and tough comparisons with the Mac for the quarter.
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