Apple Expands Channels in China, Joins WeChat E-commerce Platform, Alibaba's Tmall

Tencent Holding Ltd's TCEHY messaging app WeChat announced that Apple Inc AAPL had opened a store on its platform, expanding Apple's retail channels in the country.

Users can purchase Apple products through the WeChat store, including iPhones, iPads, and Macs, Reuters reports.

Apple's move to open a store on WeChat reflects the growing trend of Chinese consumers using social media platforms for shopping.

Also Read: The Great Wall of Apple: Despite Production Shifts, China Remains iPhone Maker's Preferred Partner

China's smartphone sales in the first quarter fell 5% year on year, marking the lowest first-quarter sales figure for the country since 2014, according to Counterpoint Research.

Despite declining overall smartphone sales, Apple recorded a 19.9% share of the Chinese smartphone market in the first quarter, the highest since 2014.

Apple's sales in China increased by 6% year-on-year during the quarter, demonstrating its success in a declining market.

Apple already operates a shop on Alibaba Group Holding Limited's BABA Tmall online marketplace, further expanding its presence in the Chinese e-commerce landscape.

This new partnership with WeChat adds to Apple's retail network in China and enhances its accessibility to Chinese consumers.

In a visit to China in March, Apple CEO Tim Cook met Chinese Premier Li Qiang and other top officials to reaffirm its loyalty to the market.

Apple still relies on Chinese-made components, especially insensitive items like non-chip components, as per Bloomberg analyst Steven Tseng. 

Despite a spate of suppliers' relocation into Southeast Asia and India, Apple has increased its reliance on specific Chinese-made components, like acoustics, glass, connectors, and display panels. 

Price Actions: AAPL shares closed higher by 0.41% at $189.38 premarket on the last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.