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Apple’s sales performance in China recovers as CEO Tim Cook says Mac production will continue in US

  • California-based company on Tuesday reported revenue of US$53.8 billion for the April-June period, up 1 per cent and beating Wall Street estimates

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Apple’s most important products, such as the iPhone, are primarily made in China but so far have avoided tariffs. Photo: Reuters
Li Taoin ShenzhenandMeng Jing

US technology giant Apple saw an improvement in its China business in the past quarter even though global iPhone sales fell to less than 50 per cent of total revenue for the first time in seven years.

The Cupertino, California-based company on Tuesday reported revenue of US$53.8 billion for the April-June period, up 1 per cent from the same period a year ago and beating Wall Street estimates. CEO Tim Cook shrugged off news that iPhone sales fell to 48.3 per cent of overall revenue, saying it reflected successful diversification away from one product.

In Greater China, which includes mainland China, Hong Kong and Taiwan, Apple said it had US$9.61 billion in sales during the three months, down 4 per cent year-on year but a much narrower decline than the 22 per cent drop off in the previous quarter, signalling that the impact from US-China tech tensions is not worsening.
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Cook said non-iPhone revenue grew 17 per cent in China and that Apple grew in every category outside the iPhone in the country. Globally, iPhone sales fell 12 per cent to US$25.99 billion, after dropping 17 per cent in the previous quarter, matching Wall Street forecasts.

“The combined effects of government stimulus, the consumer response to trade and program financing offers, and other sales initiatives and growing engagement with the broader Apple ecosystem had a positive effect,” Cook said during a conference call with analysts. “We were especially pleased with the double-digit increase in services driven by strong growth from the App Store in China,” he said.

Apple’s latest results come as US and Chinese trade negotiators meet in Shanghai for their first in-person talks since a G20 truce last month. Tensions between the US and China, Apple’s two biggest markets, have cast a cloud over the iPhone-maker due to slowing economic growth in China and uncertainties over its future supply chain.
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