Apple Inc. AAPL CEO Tim Cook has expressed optimism about the company’s performance in China while refraining from commenting on the potential impact of the economic stimulus.
What Happened: On Thursday, during Apple’s fourth-quarter earnings call, Evercore’s Amit Daryanani questioned Cook about the tech giant’s growth rates across different regions, particularly China.
In response, Cook acknowledged that Apple’s performance in China was relatively stable year-over-year, attributing some of the improvement to a sequential improvement in foreign exchange rates.
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He also noted that the installed base of active devices reached an all-time high in the country.
“We had the top two selling, smartphones in Urban China according to Kantar. The level of new customers that we have buying products like Mac and iPad are well over 50%,” Cook stated, describing these as “several positive signs.”
However, when asked about the potential impact of China’s economic stimulus, Cook chose not to speculate, stating, “I’m not an economist and don’t want to ad-lib on the effect of it.”
China’s economic stimulus, announced in September, addresses the country’s ongoing economic challenges, particularly a slowdown driven by weak consumer demand and a struggling property market.
On Tuesday, Reuters reported that China is weighing the approval of more than $1.4 trillion in additional debt next week to support its fragile economy.
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Why It Matters: Apple reported fiscal fourth-quarter revenue of $94.9 billion, slightly beating analyst expectations of $94.56 billion. The tech giant posted adjusted earnings of $1.64 per share, coming in above the projected $1.60 per share for the quarter.
This marked the seventh consecutive quarter in which Apple has outperformed analyst expectations on both revenue and earnings, according to Benzinga Pro.
The iPhone maker’s China business showed signs of stabilization, reporting $15.03 billion in revenue compared to $15.08 billion in the previous year.
However, analysts had anticipated a 6.6% growth, projecting $16.08 billion. This report follows four consecutive quarters of declining sales in China.
Last month, it was reported that Apple’s latest smartphone model, the iPhone 16 saw a 20% sales surge in China in its first three weeks, despite the absence of AI features.
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