2023-10-17 19:23:01
For the second time in 2023 alone, the CEOChief executive officeror executive director.”>1 da Apple, Tim Cookwas in China. This week, the executive visited the Asian country by surprise, including attending a game tournament Honor of Kings (developed by giant Tencent) already Apple Taikoo Li (in the city of Chengduwhich is in the southwest of the country).
At the store, the executive greeted customers and employees, and watched the tournament. He also went to a school in the district of Yucheng and a farm in Sichuan — in both cases to see projects developed with iPads and with the support of Apple, including announcing a donation to a rural development project. Since his visit began, Cook has been making posts on your profile on the Chinese social network Weibo.
One of the posts included a photo captured with the iPhone 15 Pro Max taken at night in Chengdu. In the comments, several people criticized the quality of the photo published by Cook, including comparing the device with the Huawei Mate 60one of the main competitors of the Apple device in China.
Both the comments received on the post and the visit itself are symptoms of a movement of distance between Apple and China. Although relations between the two parties have been quite close in recent years — including changes by Apple to comply with the country’s determinations —, tensions motivated by international security issues have been occurring lately, which are also being reflected in the results Apple’s economy there.
Disappointing results from iPhones 15
Although the Asian country overtook the United States as the company’s largest market in the second half of 2023, the sales results of the iPhones 15 are not very encouraging. According to Jefferies bank analystsa Huawei recently took Apple’s position as a cell phone manufacturer with largest share of the market of smartphones in China.
Additionally, research from Counterpoint Research, published by Bloombergpointed out that sales of the new line in the first two weeks following launch are 4,5% smaller than those of the iPhone 14 in the same period last year. Such statistics even caused Apple shares to suffer a slight drop.
One of the main reasons given for these results is precisely the competition from the Huawei device. It was launched weeks before the iPhone 15 and with a processor that impressed the public, especially given the sanctions on semiconductor acquisitions faced by China.
It was also pointed out that a large part of iPhone 15 sales in the Asian nation were due to discounts on the official price, which is a sign of low demand. As a result, analysts at Morgan Stanley cut Apple’s revenue forecasts for the fourth quarter of the year in 8%with indications of unfavorable results for Apple in 2024.
However, factors such as the shopping period prior to the end-of-year holidays and problems in supplying the iPhone 15 Pro Max were also highlighted, as well as other reasons for this lower-than-expected result.
In the case of the entry-level iPhone 15, the percentage drop in sales at this initial point in sales compared to last year was double digits. In the USA, on the other hand, there was an increase in 10% in line sales compared to 2023. The scenario also reflects the economic situation and nationalism in China, with its population preferring the national brand to the detriment of Apple, a company whose country has imposed embargoes on technology products from China.
The news that the country’s government had banned the use of iPhones by public servants citing security concerns also raised concerns regarding sales of the iPhone 15 in the country, although sales were ultimately authorized, even though the effect of the measure is being felt, anyway.
Cook’s visit, in this sense, certainly sought to restore ties with the country amid these difficulties, following he said that Apple has a “symbiotic relationship” with China at the beginning of the year. This week, the Belt and Road Initiative Annual Forum, which is a Chinese government economic cooperation plan that includes several countries. It is not known whether Maçã’s CEO will also attend the event.
In any case, by making this surprise visit, interacting with customers, employees and entrepreneurs in China, the idea is to somehow balance negative views that people may have acquired regarding Apple. Let’s see if the action will be enough…
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via Bloomberg
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