'China represents an unprecedented opportunity': Apple's Tim Cook unfazed by market rout

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Apple chief executive Tim Cook remains bullish on the Chinese market despite a stock slump. Photo: Reuters

Published: 10:02am, 25 Aug 2015

With Apple shares down almost 10 per cent on Monday on fears that China's economy is on the downturn, chief executive Tim Cook might be forgiven for showing some concern.

However, in a note to Jim Cramer, host of CNBC investment show Mad Money, Cook said Apple "continued to experience strong growth for our business in China through July and August", two months in which the country's stock markets fell by more than 20 per cent, wiping out all gains made during the year.

"Growth in iPhone activations has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last [two] weeks," Cook said.

"I continue to believe that China represents an unprecedented opportunity over the long run as [4G] penetration is very low and most importantly the growth of the middle class over the next several years will be huge."

Cook's bullishness seemed to reassure investors, with Apple stock ending the day higher than it began, down just 2.5 per cent. Activists praised the decision by the usually tight-lipped Cook to email Cramer.

China is Apple's second biggest market after the Americas, with App Store revenue there alone growing more than 100 per cent in the past year.

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