https://www.cnbc.com/2017/08/02/apples-china-revenues-fall-q3-earnings.html
Apple's iPhone has "gone out of fashion in China" which is holding back its performance globally, according to one analyst, but CEO Tim Cook said a continued good relationship with WeChat owner Tencent could help it gain users.
Greater China revenues for Apple fell 10 percent year-on-year in its fiscal third quarter to just over $8 billion. It marks yet another quarter of decline for the U.S. tech giant.
In contrast, domestic brands Huawei, Oppo and Xiaomi all recorded double-digit growth globally, driven by a strong performance in the world's largest smartphone market.
"Apple's iPhone has gone out of fashion in China and this is placing a cap on its worldwide performance," Neil Mawston, executive director at Strategy Analytics, said in a note on late Tuesday.
"Attention will now turn to Apple's rumored iPhone 8 introduction later this year and whether its tenth-anniversary flagship model will be different or exciting enough to ignite a rebound in iPhone volumes."
The iPhone 8 is rumored to be launched in September and a number of leaks have suggested it will be Apple's most advanced phone yet. This is something that could appeal to Chinese consumers who have taken a liking to the high-spec devices put out by domestic rivals Oppo and Vivo. Both brands along with Huawei have posed stiff competition to Apple in China.
'Encouraged'
But Chief Executive Tim Cook remained upbeat on the earnings call.
"We were very encouraged by the results this quarter. We improved as we thought we would from the previous quarters a little more than I thought we would," Cook said on Tuesday.
Apple's iPhone has "gone out of fashion in China" which is holding back its performance globally, according to one analyst, but CEO Tim Cook said a continued good relationship with WeChat owner Tencent could help it gain users.
Greater China revenues for Apple fell 10 percent year-on-year in its fiscal third quarter to just over $8 billion. It marks yet another quarter of decline for the U.S. tech giant.
In contrast, domestic brands Huawei, Oppo and Xiaomi all recorded double-digit growth globally, driven by a strong performance in the world's largest smartphone market.
"Apple's iPhone has gone out of fashion in China and this is placing a cap on its worldwide performance," Neil Mawston, executive director at Strategy Analytics, said in a note on late Tuesday.
"Attention will now turn to Apple's rumored iPhone 8 introduction later this year and whether its tenth-anniversary flagship model will be different or exciting enough to ignite a rebound in iPhone volumes."
The iPhone 8 is rumored to be launched in September and a number of leaks have suggested it will be Apple's most advanced phone yet. This is something that could appeal to Chinese consumers who have taken a liking to the high-spec devices put out by domestic rivals Oppo and Vivo. Both brands along with Huawei have posed stiff competition to Apple in China.
'Encouraged'
But Chief Executive Tim Cook remained upbeat on the earnings call.
"We were very encouraged by the results this quarter. We improved as we thought we would from the previous quarters a little more than I thought we would," Cook said on Tuesday.
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