Reportedly, Apple’s revenue in China is declining, highlighting indications of stabilization in one of the biggest smartphone markets globally, in spite of the ongoing U.S.-China trade battle and the persisted growth of Huawei. Nonetheless, analysts warned that Apple can encounter some rough quarters at the forefront without a 5G-capable iPhone in the market since China swaps on its latest generation and high-speed mobile networks. Apple posted net sales of $11.13 Billion in China during its fiscal fourth quarter, which is a 2.4% yearly decline. That drop in percentage terms was lesser than the 4.1% plunge reported in the June quarter and the 21.5% pitch posted in the March quarter.
In the middle of the U.S.-China trade battle, financiers have concerns that American companies operating in the second-largest financial system globally might suffer. China is a significant market for Apple not only for sales of its products but also for the production of its iPhones. And new levies planned for December will strike the iPhone, which remains the biggest contributor to Apple’s entire sales. However, China and the U.S. have indicated that they are ready to ink an interim trade deal. Tim Cook—Apple’s CEO—attributed the advancement in China to a number of aspects. He stated during earnings call that the “trade concerns are less” and that products have been “quite well-received” across China.
On a similar note, Apple’s CEO indicated the most important business model change. Generally, the iPhone represents up to half of Apple’s proceeds and the smartphone has been struggling, as per reports. Even with just a week of sales of Apple’s latest iPhones in its recent quarter, the key segment’s earnings were down in the period. CEO Cook tried to frame that in an affirmative way during the company’s fiscal fourth-quarter revenue call. He said, “In the September quarter, iPhone revenue was $33 Billion.”
From initially working as a freelance to test his writing skills to being a full-fledged Content Writer, Harry Cabana has earned a vital place in our team. He has become a pro in writing articles and blogs relating to the world of business. Harry holds the responsibility to write about all comprising, and not restricted to, mergers & acquisitions, recent trends, agreements & deals, events, and much more. In free time, Harry likes to spend some time with elderly people and learn new things from their life experiences.