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Apple Informs Investors That iPhone Sales In China Are Solid Despite The Huawei Threat

Apple Informs Investors That iPhone Sales In China Are Solid Despite The Huawei Threat
In an attempt to calm investors who fear it is falling behind Huawei Technologies and other regional smartphone manufacturers, Apple has stated that demand for its iPhones in China was high.
"In mainland China, we set a quarterly record for the September quarter for iPhone," Chief Executive Tim Cook said in an interview. "We had four out of the top five best-selling smartphones in urban China."
On a conference call with analysts, he stated that although the smartphone market may have shrunk overall, Apple seems to have increased its market share in China between July and September.
Despite one fewer week of sales in this quarter than last, Cook stated that the business anticipates selling more iPhones during the holiday quarter.
According to research firm Canalys, China's total smartphone sales decreased by 3% between July and September of last year compared to the same period last year as customers purchased less cellphones due to an uneven economic recovery.
The fact that the rate of fall was less rapid than in prior quarters suggests that the market's downturn has abated. According to Canalys, iPhone sales in China dropped by 6%.
Analysts, however, predict that Huawei's smartphone sales in China increased significantly during the quarter. Despite being under pressure for years due to crippling U.S. sanctions, its Mate 60 Pro phone has garnered headlines for having an innovative technology built in China.
Apple reported a 2.5% decline in overall sales in China on Thursday, citing challenging sales of Mac computers and iPads. Cook added that after taking foreign exchange rates into account, sales increased there.
Apple's fiscal year 2023 ended on September 30. During the first three of the four quarters, the company's sales in China decreased.
Analysts stated that despite indications that a recovery in the larger smartphone market was picking up steam, they were still positive about Apple's demand prognosis in China into the fourth quarter.
Major Chinese online retailers are aggressively reducing the iPhone 15 series in the lead-up to the annual Singles Day shopping event, which is also driving up demand.
While Apple periodically permits its Chinese partner sellers to provide discounts in an effort to increase demand, these stores are also competing with one another on "value for money" in an effort to attract customers.
Platforms including, Pinduoduo, and Alibaba's Taobao have been offering significant discounts on iPhone 15 models over the last two weeks. These discounts have resulted in price reductions of up to 1,501 yuan ($205.14) below retail.
"While the latest iPhone series had underperformed in China in the launch quarter due to a shorter pre-holiday shopping period coupled with supply mismatches on the Pro Max, it could see improvement in the year-ending quarter with a strong 11.11 sales event performance," research consultancy Counterpoint wrote in a note on Friday.
Apple's remarks came after upbeat remarks made on Wednesday by Qualcomm, its chip supplier, indicating that a two-year decline in the smartphone industry was beginning to improve, driven primarily by a rebound in China.
Another supplier of wireless connectivity chips to Apple, Qorvo, reported that its largest bookings quarter in over two years had been seen by the company, and that inventory levels at its Chinese customers were gradually declining.
Although Huawei's processors are a fresh source of competition for Qualcomm, the company stated on Wednesday that it does not anticipate Huawei's re-entry into the market to have an impact on its partnerships with Chinese smartphone manufacturers.

Christopher J. Mitchell

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