During a visit to China, Apple CEO Tim Cook emphasized the country’s pivotal role in the company’s operations, acknowledging its significance amid apparent challenges in the Chinese market.
Amidst escalating geopolitical tensions, Cook has been frequenting China, a crucial market and a major hub for Apple’s manufacturing operations. His recent visit commenced in Shanghai with an interview with local media, where he lauded the country and pledged increased investment.
State-owned media outlets, including the Global Times, highlighted Cook’s commitment to investing more in China, quoting him as stating, “There’s no supply chain in the world that’s more critical to us than China.” Cook also commended the modernization and advanced manufacturing capabilities of Chinese factories.
In his discussions with Chinese media, Cook underscored Apple’s reliance on China’s support to achieve carbon neutrality for all its products by 2030. He also emphasized the company’s significant investments in generative artificial intelligence.
However, Cook’s visit coincides with declining iPhone sales in China, a market that contributed $21 billion to Apple’s revenue in the fourth quarter, representing a 13% year-on-year decrease. Moreover, recent reports indicate a 24% decline in iPhone sales during the initial weeks of this year.
Apple has encountered headwinds in China, including efforts to discourage iPhone usage among Chinese state employees and the resurgence of domestic smartphone giant Huawei.
Some delegates to China’s top political gathering have expressed preferences for domestic brand phones, raising concerns about iPhone security.
In response, Apple has sought to change the narrative. The company announced upgrades to its research center in Shanghai and the establishment of a laboratory in Shenzhen, aimed at enhancing research and testing for its products.
While economic conditions and media portrayal pose challenges, loyal Apple users in China continue to value the ecosystem the company offers.
