Tim Cook: Apple Saw 'Great Improvement' in China in Q3 2019

by

Thanks to trade-in programs and other promotions, Apple saw significant improvement in iPhone sales in China, Apple CEO Tim Cook said today during today's earnings call covering the third fiscal quarter of 2019.

Cook said that Apple saw "great improvement" in China, returning to growth in constant currency in Greater China with improvements in year-over-year ‌iPhone‌ performance compared to the last two quarters.

iphonexr

We're happy with our performance across the board, including a return to growth in mainland China. We accomplished this despite strong headwinds from foreign exchange, which impacted the top-line growth rate by 300 points compared to a year ago, equivalent to $1.5 billion of revenue. In constant currency, our revenue grew in all five of our geographic segments.

Cook went on to say that Apple is "encouraged" by the results of the initiatives it launched earlier this year, with the company seeing a strong customer response to in-store trade-in and financing programs. ‌iPhone‌ in retail and online stores returned to growth on a year-over-year basis in June, said Cook, and the active installed base of ‌iPhone‌ users reached a new all-time high.

Despite the improvements, ‌iPhone‌ revenue was down during the quarter. The ‌iPhone‌ brought in $26 billion, down from $29.5 billion in the third quarter of 2018. For the first time, the ‌iPhone‌ was responsible for less than half of Apple's revenue, with services and wearables making up for the decline in sales.

Cook said that later this year, Apple has "several new products" that it can't wait to share with customers, without going into details. Apple also has multiple services on the horizon, including Apple Card (coming in August), Apple Arcade, and Apple TV+.

Top Rated Comments

Bawstun Avatar
17 months ago
“Great improvement” is codespeak for only a -4.X% decline instead of the double digits in the -20%’s of the last two quarters, lol.
Score: 7 Votes (Like | Disagree)
Bawstun Avatar
17 months ago

Good news for investors.

It’s hard for me as a consumer to care. So I don’t. I think I’m a bit on China overload where Apple is concerned. Tim seems enamored of their market in a way that seems almost personal. Maybe it’s my imagination but I think I see more animation and enthusiasm when he is talking about China related topics than I detect in his speech about other aspects of Apple’s business.

But it’s an interesting tidbit of business news after so many news articles highlighting their struggles in China. I really hadn’t expected any of their initiatives to work because I thought their problems in China went beyond price sensitivity.

Sales declined over 4% in China. It hasn’t worked, it’s just media spin. I mean, compared to the 20%+ decline of the past two quarters, I guess a 4.% loss is an improvement, technically, but it’s still a loss and hasn’t been reversed into a gain. I doubt they ever will.
Score: 7 Votes (Like | Disagree)
now i see it Avatar
17 months ago

Cook said that later this year, Apple has "several new products" that it can't wait to share with customers, without going into details.

did someone leave a broken record spinning on the turntable?
Score: 5 Votes (Like | Disagree)
Mactendo Avatar
17 months ago

as it ships from China to its local stores or direct from factory, I am surprised Apple does not sell these cheaper as there is no shipping by sea or air to contribute to the overhead.

If Apple sold iPhones there cheaper on purpose, then the gray market would export them to other countries.
There is already an issue with phones from Hong Kong being resold to China, because in Hong Kong iPhones are cheaper due to lower local taxes.
Score: 2 Votes (Like | Disagree)
masotime Avatar
17 months ago

Despite the improvements, iPhone revenue was down during the quarter. The iPhone brought in $26 million, down from $29.5 billion in the third quarter of 2018.

I'm guessing that should be $26 billion
Score: 2 Votes (Like | Disagree)
code-m Avatar
17 months ago

Good news for investors.

It’s hard for me as a consumer to care. So I don’t. I think I’m a bit on China overload where Apple is concerned. Tim seems enamored of their market in a way that seems almost personal. Maybe it’s my imagination but I think I see more animation and enthusiasm when he is talking about China related topics than I detect in his speech about other aspects of Apple’s business.

But it’s an interesting tidbit of business news after so many news articles highlighting their struggles in China. I really hadn’t expected any of their initiatives to work because I thought their problems in China went beyond price sensitivity.

iPhones are manufactured in China, as there are no tariffs (I don’t believe) as it ships from China to its local stores or direct from factory, I am surprised Apple does not sell these cheaper as there is no shipping by sea or air to contribute to the overhead.
Score: 1 Votes (Like | Disagree)

Top Stories

m1 chip macbook air pro

Kuo: Redesigned MacBooks With Apple Silicon to Launch in Second Half of 2021

Tuesday November 24, 2020 7:53 pm PST by
Apple plans to release additional MacBook models with Apple Silicon in the second half of 2021, according to analyst Ming-Chi Kuo, as part of the company's two-year transition away from Intel processors across its Mac lineup. In a research note today, obtained by MacRumors, Kuo said that these MacBook models will feature a new design. Kuo did not specify which models these will be, but he...
Apple Watc black friday 20 sale feature

Apple Black Friday 2020: Best Apple Watch Deals [Updated]

Wednesday November 25, 2020 4:01 pm PST by
Black Friday sales have begun on a variety of products, including the Apple Watch. There are quite a few deals across the Apple Watch lineup this year, including one of the lowest price we've ever seen the Apple Watch Series 3. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the...
AirPods Pro black friday 20 sale feature 2

Black Friday 2020: AirPods Pro Reach Lowest Price Ever [Updated]

Wednesday November 25, 2020 3:22 pm PST by
Black Friday has kicked off this week, and one of the first major sales for the AirPods Pro is available right now on Walmart. You can find this deal below, along with a few other solid discounts on the regular AirPods. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site...
13 16 inch macbook pro air trio

Reliable Leaker Suggests Redesigned MacBooks in 2021 Will Include Both Apple Silicon and Intel Models

Wednesday November 25, 2020 9:15 am PST by
Reliable leaker known as "L0vetodream" has today suggested on Twitter that redesigned MacBooks coming in the second half of 2021 will include models with both Apple Silicon chips and Intel processors. The brief Tweet came in response to a MacRumors article from earlier today, which outlined a report from Ming-Chi Kuo claiming that Apple plans to release redesigned MacBook models with Apple ...
mac mini macbook pro macbook air

Apple M1 Hands-On Comparison: MacBook Air vs. MacBook Pro vs. Mac Mini

Monday November 23, 2020 3:40 pm PST by
Apple's M1 Macs are out in the wild now, but ahead of the holidays, you might still be trying to figure out which one to pick up, either for yourself or as a gift for someone else. We've got all three of the new Macs available, so we thought we'd give MacRumors readers a hands-on overview of each machine in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. ...
app store christmas icon

Apple Shutting Down App Store Connect From December 23 to December 27

Monday November 23, 2020 10:14 am PST by
Apple shuts down App Store Connect for a week around the holidays each year in an effort to give App Store staff time off from work. This year, App Store Connect will be unavailable from December 23 to December 27. With App Store Connect unavailable, Apple will not accept new apps or app updates, so all pricing changes and new app submissions need to be locked in before those dates for...
iPads black friday 20 sale feature

Apple Black Friday 2020: Best iPad Deals [Updated]

Tuesday November 24, 2020 8:51 am PST by
Black Friday is underway, and we're tracking discounts across Apple's lineup of iPads, including the current-generation 10.2-inch iPad, iPad Air, and iPad Pro. We'll be keeping this post updated as new deals appear and current ones expire, so be sure to keep checking back for the latest. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a...
Target November Deals 1

Black Friday Spotlight: Target Begins Week-Long Sale With Deals on iPhone 12, Powerbeats Pro, and More

Monday November 23, 2020 8:07 am PST by
We've been tracking early Black Friday deals in our dedicated Black Friday Roundup, and in an effort to prepare our readers for the big shopping event we're highlighting sales store-by-store in the lead-up to November 27. Note: MacRumors is an affiliate partner with Target. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running....
new mac mini logicpro screen

M1 Macs Able to Run Up to Six External Displays Using DisplayLink

Tuesday November 24, 2020 6:53 am PST by
It is possible to run up to six external displays from the M1 Mac mini, and five external displays from the M1 MacBook Air and MacBook Pro, with the aid of DisplayPort adapters, according to YouTuber Ruslan Tulupov. This far exceeds Apple's specified limits on external displays with the M1 Macs. Apple's host of new M1 Macs are not capable of supporting as many external displays as their...
2020 apple shopping event

Apple Offering Up to $150 Gift Card With Select Products on Black Friday Through Cyber Monday

Monday November 23, 2020 2:53 am PST by
Apple has announced its annual four-day shopping event, offering customers up to a $150 Apple Store gift card with the purchase of select products between Black Friday and Cyber Monday in the United States. The gift card values in the United States are as follows: $150 for 16-inch MacBook Pro $150 for 21.5-inch iMac $50 for 13-inch MacBook Pro $50 for MacBook Air $50 for iPhone SE,...