Tim Cook gets real about China
Apple reported better-than-expected sales in China in its latest earnings, including the iPhone.
Still, CEO Tim Cook believes there's still "work to do" in bolstering sales to its major market.
"I think it has been and is the most competitive market in the world," Cook said regarding China.
Apple CEO Tim Cook says there's still more work to do on the China front.
Apple reported in its second-quarter earnings that the company saw better-than-expected sales in China, a major market, which has been a source of concern for investors worried about a slowdown.
While overall iPhone sales were down 10% year-over-year, CEO Cook noted that Apple "still saw some growth" on iPhone in China, specifying that "two best-selling smartphones in urban China" are the iPhone 15 and iPhone 15 Pro Max. That growth may come as a surprise to investors, as Counterpoint Research reported earlier this year that iPhone sales to China fell by 24% in the first six weeks of 2024 amid competition from local rivals like Huawei.
Still, Cook noted that there's "clearly work there to do" in bolstering sales of other products like the iPad to one of Apple's biggest markets.
"I think it has been and is the most competitive market in the world," Cook said on Apple's latest earnings call. "I believe it was last quarter as well."
Nevertheless, the CEO told investors that he continues to feel "very optimistic" about the China market, citing better economic conditions in the region as a driving factor for greater consumer spending.
"If you step back from the 90-day cycle, what I see is a lot of people moving into the middle class," Cook said on the call. He added that Apple has "a lot of happy customers" in China, pointing to the tech giant's recent store opening in Shanghai as indicative of consumer interest in its products.
"I feel good about China, I think more about long term than to the next week or so," Cook told CNBC in an interview before earnings.
Apple didn't immediately respond to a request for comment from Business Insider before publication.
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