What's happened
Apple's sales in Greater China fell slightly in Q4 2024, missing analyst expectations. Despite strong global iPhone demand, competition from local brands like Huawei and Xiaomi poses challenges. The anticipated launch of Apple Intelligence in Chinese is set for April 2025, which may impact future sales.
Why it matters
What the papers say
According to the South China Morning Post, Huawei's revenue surged by 29.5% in the first three quarters of 2024, indicating a strong comeback in the premium smartphone segment. In contrast, Apple's sales in Greater China fell slightly, with the company attributing this to lower iPhone and iPad sales. The New York Times highlighted that while Apple reported a 6% increase in overall revenue, its profits were impacted by a significant tax payment to the EU. Analysts from Wedbush Securities remain optimistic, suggesting that the iPhone 16 cycle could lead to growth in China, but competition remains fierce. Business Insider UK noted that Apple is in talks with Chinese tech firms to enhance its AI capabilities, which could be crucial for its future performance in the region.
How we got here
Apple's recent fiscal report revealed a decline in sales in Greater China, a crucial market for the company. This comes as local competitors gain traction, particularly with the launch of new AI-equipped smartphones. Apple's delayed AI features may further hinder its market position.
More on these topics
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Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
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Huawei Technologies Co., Ltd. is a Chinese multinational technology company headquartered in Shenzhen, Guangdong. It designs, develops, and sells telecommunications equipment and consumer electronics.
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Xiaomi Corporation is a Chinese electronics company founded in April 2010 and headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, earphones, shoes, fitness bands, and many other products.
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Timothy Donald Cook is an American business executive, philanthropist and industrial engineer. Cook is the chief executive officer of Apple Inc., and previously served as the company's chief operating officer under its cofounder Steve Jobs.