Apple reported disappointing quarterly results, suggesting that sales of iPhones and other products in China fell due to stiff competition from Huawei and weak demand. Despite these challenges, the company remains optimistic about the long-term prospects in the Chinese market and other markets such as India.
Highlights:
- Revenue: $90.75 billion (down 4.3% year-on-year)
- iPhone sales: $46 billion (down 10.5% year-over-year)
- Profit in Greater China: $16.4 billion (down 8.1% year-on-year)
- Record share buyback plan: $110 billion
- Quarterly dividend increase: 12th consecutive year
- Optimism about artificial intelligence: New products on the horizon
- Weak demand in China
Apple’s sales in China have declined significantly, largely due to fierce competition from Huawei and the general downturn in the economy. Huawei, which has been losing ground in recent years, has started to grow again thanks to its 5G smartphones and other products.
Despite the short-term problems, Apple remains optimistic about the long-term prospects in the Chinese market. CEO Tim Cook called China “the most competitive market in the world” but added that he “has a great vision for China over the long term.”
Apple also saw strong growth in other markets such as India and Indonesia. The company plans to expand production in Southeast Asia and India to reduce its dependence on China. The company announced its largest stock buyback plan today, worth $110 billion.
