Apple’s China sales fall 13% in December quarter amid weak iPhone demand, increased competition from Huawei

Apple’s revenue in its Greater China region – covering the mainland, Hong Kong, Macau and Taiwan – reached US$20.8 billion in the December quarter

CEO Tim Cook said iPhone sales in the region saw a ‘mid-single-digit’ decline in the December quarter

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Despite slow iPhone sales, Apple still topped mainland China’s smartphone market in the fourth quarter and the whole of 2023, according to research firm IDC. Photo: Shutterstock

Published: 7:29pm, 2 Feb 2024Updated: 8:53pm, 2 Feb 2024

Apple reported a nearly 13 per cent drop in revenue from its Greater China region in the December quarter, a setback that chief executive Tim Cook shrugged off amid the US tech giant’s overall global growth and its steadfast confidence in the world’s biggest smartphone market over the long term.

The Cupertino, California-based company on Thursday said global revenue in the three months ended December 30 totalled US$119.6 billion, up 2 per cent from US$117.1 billion a year earlier, as sales rose in its other operating regions. This marked Apple’s first quarterly revenue growth in a year.

Revenue in Greater China – covering the mainland, Hong Kong, Macau and Taiwan – reached US$20.8 billion in the quarter, down from US$23.9 billion a year ago.

Cook indicated that iPhone sales in mainland China saw a “mid-single-digit” decline on a constant-currency basis, but expressed optimism about Apple’s long-term prospects in the world’s second-largest economy.

Shoppers are seen inside an Apple Store in Beijing on February 2, 2024. China remains a prized market for Apple, which generates roughly a fifth of its sales there. Photo: Bloomberg

“I remain very optimistic about China over the long term,” Cook said in a conference call with analysts after its earnings results announcement. “And I feel good about hitting a new install base number, a high water mark, and very good about the growth in upgraders year over year during the quarter.”

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