Posted on 02/01/2024 3:45:43 PM PST by FarCenter
PALO ALTO, California -- Apple reported a return to growth Thursday during the December quarter after a year of declining revenue.
The U.S. tech giant's October-December revenue grew in all regions except Greater China, where the iPhone maker faces flagging sales amid growing competition.
Apple's revenue rose 2.1% on the year to $119.6 billion for the three months ended Dec. 30. Sales of the company's cash cow, the iPhone, jumped 6% to $69.7 billion.
Greater China -- covering the mainland, Hong Kong and Taiwan and a main growth engine for Apple in recent years -- was the only region whose revenue declined for the quarter, falling 12.9% on the year to $20.8 billion.
Apple CEO Tim Cook said on an earnings call that iPhone sales in China were down "mid-single digits" on a constant-currency basis.
"We've been in China for 30 years," he said. "And I remain very optimistic about China over the long term."
The earnings report sent Apple shares down over 3% in extended trading.
Apple is facing growing competition from Huawei Technologies and other domestic brands in China as the overall smartphone market is squeezed amid economic pressure.
According to Counterpoint Research, iPhone sales in China dropped 9% on the year for the October-December quarter, while Huawei's sales rose 71.1%, driven by its 5G chipset. For the full year of 2023, overall smartphone sales in China fell 1.4%.
(Excerpt) Read more at asia.nikkei.com ...
Up 2.1%? Inflation adjusted?
Right now in China young people are struggling to make ends meet. For that reason there is a widespread movement to be ads frugal as possible - from clothing to food.
Young people are buying $1 meals or buying even less expensive “mystery boxes” of left over food. They are not shopping for stylish & expensive clothes, rather buying “grandma” outfits and pajamas as daily wear.
iPhones are stylish and not cheap, and do not fit into the current frugality movement.
Why Are Chinese People Frantically Rushing for McDonald’s $1 Burgers?
https://www.youtube.com/watch?v=NV8Y36JU7Eg
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