when apple It was reported that its December’s revenue in December was on Thursday, showing that China’s sales decreased by 11.1 % each year.
This is the worst quarter since December of the year, and this is the sixth quarter of Apple’s third largest region.
Before Apple’s income, analysts have been annoyed by this issue. They quoted The country’s supply chain inspection shows that the demand is weak. The overall impression is that Chinese consumers have begun to prefer local -made devices from companies such as Huawei and Xiaomi, not iPhone.
Cook told analysts on Thursday that China is “the most competitive market in the world.” According to IDC estimates this week, in 2024, Apple ranked third in China’s market share, second only to Vivo and Huawei.
When CNBC’s Steve Kovach and analysts asked Cook’s performance in China on Thursday, Cook’s performance in China, his income conference was increasingly less and less. Pay attention to competition, and pay more attention to how the company’s operating decisions affect China’s sales.
Cook said that there were some things to remember about the company’s decline in this quarter.
The most noteworthy is that Cook quoted the absence of Apple intelligence in China, and China affected sales. He added that the company’s artificial intelligence function kit for the iPhone 16 enhanced the iPhone sales in the United States and other countries/regions.
Cook said: “In the December quarter, we saw that in the market we launched Apple Intelligence, the year -on -year performance of the iPhone 16 family is stronger than those of the markets we have not launched Apple intelligence.”
Apple said on Thursday that the company’s AI software only provides English, but Apple will release a simplified Chinese version in April. This does not necessarily mean that Apple intelligence will be launched in China that month, but this does mean that speakers in other places can test Apple’s AI.
Cook told CNBC: “Before we complete the supervision, we are not sure, we are doing it now.”
He added that the company is looking for local partners approved by the country to provide AI to deal with difficult or complex issues, such as OpenAI’s ChatGPT
Cook said: “Many Chinese companies do have local operations.” “What we want to do is to choose one, and then integrated with them like Openai.”
Cook said about half of China’s revenue declined because the company misused the demand in the country. This has led to the “channel inventory” problem. Apple uses a phrase “Channel” to describe companies such as wireless operators and retailers selling Apple devices.
Cook said: “My point of view is that our channel inventory starts from this quarter to the end of this quarter, and the results of the report have decreased by more than half.” “Part of the reason is that by the end of this quarter, our sales are higher than our prediction. The sales are high. “
Cook said that Apple ended its expected quarterly inventory in the country’s inventory. He also pointed out a nationwide subsidy plan that can effectively reduce the cost of some Apple products in the country.
Cook told CNBC: “There is now a national subsidy plan to start on January 20, and some of these products are part of them. This is a fiscal stimulus, a bit.”
The Chinese government proposed a subsidy policy last year to increase consumption and domestic demand. Analyst company CanalysEssence Earlier this month, smartphones were added to the list of qualified products. The upper limit of each product for subsidies is 500 yuan, while Apple’s Pro Phone and other models are not qualified 6,000 yuan.
Cook said at a call conference on Thursday that some of Apple’s products include smartphones, tablets, PCs, and smart watches will be covered by subsidies.
Cook said: “We do see fiscal stimuli, and we will be glad to talk about the next phone.”
