Apple Inc’s AAPL CEO, Tim Cook, inaugurated a new store in Shanghai, showcasing the tech giant’s ongoing commitment to China as a critical market and manufacturing hub.
The store opening, which took place amid an atmosphere of enthusiastic applause, marked Cook’s presence in Shanghai as part of a highly publicized visit.
The opening of Apple’s eighth store in Shanghai was part of Cook’s efforts to fortify Apple’s relationship with China, where he engaged with local celebrities, tasted local cuisine, and met with critical suppliers like BYD Co and Lens Technology Co, Bloomberg reports.
Cook’s visit underscores his and Apple’s commitment to maintaining and strengthening ties with China.
This commitment is evident in his meetings with suppliers and his promotion of Apple products, despite the challenges posed by geopolitical tensions, the Chinese government’s restrictions on iPhone usage among state agencies, and the competitive threat from Huawei Technologies Co.
In the first six weeks of the year, iPhone sales in China plummeted by 24%, pushing Apple to the fourth spot among the country’s smartphone vendors, according to Counterpoint Research.
Vivo, hailing from Dongguan and known for targeting the budget-friendly market, surpassed Apple and became China’s leading smartphone seller. While both companies saw sales declines amidst a 7% contraction in
China’s overall smartphone market, Huawei Technologies Co. saw its market share jump to 16.5% thanks to its Mate 60 Pro series and a rise in nationalist buying trends.
Amid a general market slowdown affecting iPhone performance, Apple initiated rare discounts on its website in January, and online resellers cut prices by as much as $180.
Despite these efforts and steep discounts on the iPhone 15 series by resellers, Apple’s sales in China fell by 13% to $20.8 billion in the December quarter, marking a significant downturn.
The year 2023 saw Apple diversifying production beyond China in India and Vietnam to dodge geopolitical tensions.
The iPhone maker has gained 8.4% in stock value in the last 12 months. Investors can gain exposure to the stock via Fidelity MSCI Information Technology Index ETF FTEC and IShares Global Tech ETF IXN.
Price Action: AAPL shares are trading lower by 3.58% at $172.27 on the last check Thursday.
Also Read: Apple Rival Huawei Doubles Smartphone Sales As US Restrictions Prepare to Kick In
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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