Apple 'couldn't be happier' with improved sales in China
Following a previous decline in sales, and increases in both exchange rates and rising trade tensions between the U.S. and China, Apple's Tim Cook sees positive signs for the future.
Apple's iPhone range
During the company's financial earnings call for the third quarter of 2019 on Tuesday, CEO Tim Cook reported that Apple had seen better growth in revenues from China in both of the last two quarters. That follows both a previous warning from Apple over low iPhone sales, and the company's moves to stem fallout from that decline.
"What happened last quarter in China, it's a confluence of things," Cook said. "The [Chinese] government stimulus just came, in terms of a VAT reduction, a very bold one [and] we took some pricing action."
"We instituted our trade-in and financing programs in our retail stores," he continued, "and worked with certain channel partners on that as well. And we're seeing a growing engagement with the broader Apple ecosystem during the quarter."
Cook said that there had been growth in China across all the company's major categories from iPhones to Macs and services. "Everything improved sequentially, so we couldn't be happier with the results, or the progress, I should say."
Chief Financial Officer Luca Maestri also referred to the trade-in program, and while he didn't break it down to specifically China, he told analysts that compared to the previous year, the volume of trade-in sales were five times greater. Maestri also said Apple returned to growth in mainland China over the three-month period ending in June.
Separately, Cook also spoke about the pressures on Apple to move production out of China, and said that the company's products were basically "made everywhere." He also said that Apple is currently investing more in increasing its manufacturing capacity in the United States.
Apple's iPhone range
During the company's financial earnings call for the third quarter of 2019 on Tuesday, CEO Tim Cook reported that Apple had seen better growth in revenues from China in both of the last two quarters. That follows both a previous warning from Apple over low iPhone sales, and the company's moves to stem fallout from that decline.
"What happened last quarter in China, it's a confluence of things," Cook said. "The [Chinese] government stimulus just came, in terms of a VAT reduction, a very bold one [and] we took some pricing action."
"We instituted our trade-in and financing programs in our retail stores," he continued, "and worked with certain channel partners on that as well. And we're seeing a growing engagement with the broader Apple ecosystem during the quarter."
Cook said that there had been growth in China across all the company's major categories from iPhones to Macs and services. "Everything improved sequentially, so we couldn't be happier with the results, or the progress, I should say."
Chief Financial Officer Luca Maestri also referred to the trade-in program, and while he didn't break it down to specifically China, he told analysts that compared to the previous year, the volume of trade-in sales were five times greater. Maestri also said Apple returned to growth in mainland China over the three-month period ending in June.
Separately, Cook also spoke about the pressures on Apple to move production out of China, and said that the company's products were basically "made everywhere." He also said that Apple is currently investing more in increasing its manufacturing capacity in the United States.
Comments
“Chinese people do use cards for purchasing items, but these are prepaid or debit. ... “ from Google Search
You can see how, what Apple implemented had an impact on sales. If we could have a conclusion to the trade war, Apple would have a chance to rebuild some momentum.
I would bet on those lower end user prices forming the base of the official launch prices for the 2019 refresh.
Although I'm not in China, the improved trade-in offers were the sole reason Apple got the sale. Lots of people were probably in a similar situation.
'Couldn't be happier' is an unquantifiable expression in this case and ironically couldn't
be further from the truth, being unquantifiable just makes it the necessary spin doctoring for the occasion.
Of course Apple 'could be happier', and in a quantifiable way. YoY Chinese iPhone growth for example. But in this context what he meant 'given the circumstances ...'.
You mean the first orangutan to become president?!!??!!!!
But at the cost of "marketshare".
Here we go again....
Do you agree that it was spin? Necessary, but spin.
Do you agree that if iPhone sales had increased rather than decreased YoY in China they would have been objectively happier? Quantifiably happier.
Perhaps 'here we go again' should apply to the CEO putting a brave face on things and trying to avoid saying, you know, 'we screwed up on pricing and, as a result, since before last Christmas we have been discounting (in one way or another) to stimulate sales and competition has been fierce across all price bands. Oh, And we screwed up in India too.'
You need to make your own objective and subjective opinion and state it. Don't blindly take it all in like a happy pill.
'here we go again' doesn't say anything useful.
If you have an opinion on this, you can provide it. It's a sum up of the quarter. You have some hard information to go on now.