- Apple reported better-than-expected gross sales in China in its newest earnings, together with the iPhone.
- Still, CEO Tim Cook believes there’s nonetheless “work to do” in bolstering gross sales to its main market.
- “I think it has been and is the most competitive market in the world,” Cook stated relating to China.
Apple CEO Tim Cook says there’s nonetheless extra work to do on the China entrance.
Apple reported in its second-quarter earnings that the corporate noticed better-than-expected gross sales in China, a significant market, which has been a supply of concern for traders nervous a few slowdown.
While general iPhone gross sales have been down 10% year-over-year, CEO Cook famous that Apple “still saw some growth” on iPhone in China, specifying that “two best-selling smartphones in urban China” are the iPhone 15 and iPhone 15 Pro Max. That development might come as a shock to traders, as Counterpoint Research reported earlier this 12 months that iPhone gross sales to China fell by 24% within the first six weeks of 2024 amid competitors from native rivals like Huawei.
Still, Cook famous that there is “clearly work there to do” in bolstering gross sales of different merchandise just like the iPad to one among Apple’s largest markets.
“I think it has been and is the most competitive market in the world,” Cook stated on Apple’s newest earnings name. “I believe it was last quarter as well.”
Nevertheless, the CEO informed traders that he continues to really feel “very optimistic” concerning the China market, citing higher financial circumstances within the area as a driving issue for larger shopper spending.
“If you step back from the 90-day cycle, what I see is a lot of people moving into the middle class,” Cook stated on the decision. He added that Apple has “a lot of happy customers” in China, pointing to the tech big’s latest retailer opening in Shanghai as indicative of shopper curiosity in its merchandise.
“I feel good about China, I think more about long term than to the next week or so,” Cook informed CNBC in an interview earlier than earnings.
Apple did not instantly reply to a request for remark from Business Insider earlier than publication.