Apple reported on Wednesday that it will report its fourth-quarter results for fiscal 2019 in the U.S. local time. Tim Cook, the company’s chief executive, said on a subsequent earnings conference call that Apple had seen “a lot of positives” in its China business and reiterated that it was “feeling good” about its China operations. Apple’s revenue in Greater China fell 2 per cent year-on-year in the fourth quarter, and Mr Cook said the company had taken a number of steps to address the problem, which together are helping to turn around the difficult situation it faces in Greater China.
Pictured: via Apple Insider, a power farm supported by Apple’s Clean Energy Fund
“We did a great job in China in September, with strong sales of the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max,” Cook said. We are very satisfied with what we have achieved there. ”
He continued: “As you can see from the data, our China business has improved significantly since the start of the year, with revenues down 20 per cent year-on-year to 2 per cent. Excluding the impact of the exchange rate, we actually grew by 1%. We obviously want to be better and we feel good about how we are there. ”
Mr Cook reiterated that the new iPhones were “very popular” in China, saying they were part of several simultaneous steps Apple has taken to reverse the downward trend in its business.
“I think the turnaround in China is the result of a combination of factors, including lower product pricing, support for installments, trade-in, and so on, all of which have changed the situation, ” he said. ”
Cook stressed that while he is particularly concerned about the iPhone, there is more to be done in China. “Our service business has grown by double digits, and we’re starting to see more games in the quarter,” he explains. ”
“Wearables are also doing very well at the corporate level, and even better in China, where there are a lot of positive drivers,” he concludes. ”
China is a key growth region for Apple and the company’s third-largest market, accounting for $11.13 billion of its $64 billion in revenue in the quarter, but still down from $11.4 billion a year earlier.