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
38 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
38 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
38 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
38 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
38 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
38 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)

Popular Stories

home app ios 16

Apple Confirms iPad Will No Longer Be Supported as a Home Hub in iOS 16

Wednesday June 22, 2022 12:38 pm PDT by
The iPad will no longer be able to be used as a home hub following the launch of iOS 16, iPadOS 16, macOS Ventura, and the HomePod 16 software this fall, Apple confirmed today. As discovered in iOS 16 code by MacRumors contributor Steve Moser, Apple says that the iPad will no longer be supported as a home hub. This information will be displayed in the Home app after updating to iOS 16.A home ...
apple ar headset concept 2

Apple CEO Tim Cook Hints at AR/VR Headset: 'Stay Tuned and You'll See What We Have to Offer'

Wednesday June 22, 2022 6:34 pm PDT by
CEO Tim Cook this week did an interview with China Daily, where he once again commented on on the future of augmented reality and hinted at Apple's work on an AR/VR headset. Render via designer Ian Zelbo Cook said that Apple is excited about the opportunities available with augmented reality, which is not too far off from prior comments that he's made, but he went on to say that people should ...
customize wallpaper setting ios 16

iOS 16 Beta 2 Tidbits: New Wallpaper Colors, Backup Over LTE, SMS Filtering and More

Wednesday June 22, 2022 2:16 pm PDT by
Apple today seeded the second betas of iOS 16 and iPadOS 16 to developers for testing purposes, and the new betas introduce new features and refine some of the changes that Apple made with the first iOS 16 release. Subscribe to the MacRumors YouTube channel for more videos. Lock Screen Photo Wallpaper Customization When customizing a photo on the Lock Screen, there are two new DuoTone and...
Shazam Music Recognition Control Center

iPhone's Built-In Music Recognition Feature Syncs With Shazam App on iOS 16

Tuesday June 21, 2022 7:37 am PDT by
Since the release of iOS 14.2 in 2020, the iPhone has included a built-in Music Recognition feature in Control Center powered by Shazam. And with iOS 16, and also the iOS 15.6 beta, the feature has received a small but useful upgrade. As noted by Twitter user @someone_andrew, songs identified with Music Recognition in Control Center finally sync with the Shazam app. It also remains...
2022 back to school apple

Apple Launches 2022 Back to School Offer: Up to $150 Gift Card With Mac or iPad

Friday June 24, 2022 5:08 am PDT by
Apple today launched its annual "Back to School" promotion for college/university students in the United States and Canada. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad, rather than free AirPods like last year. Apple is also offering students 20% off AppleCare+ plans during the promotion. Apple is offering a $150 gift card with the purchase ...
ios 16 lock screen feature2

Apple Seeds Second Betas of iOS 16 and iPadOS 16 to Developers

Wednesday June 22, 2022 10:07 am PDT by
Apple today seeded the second betas of upcoming iOS 16 and iPadOS 16 updates to developers for testing purposes, with the updates coming two weeks after Apple unveiled the new software at WWDC and released the initial betas. Registered developers can download the iOS and iPadOS 16 profiles from the Apple Developer Center, and once installed, the betas will be available over the air. Given...
apple ar headset concept 1

Apple Rumored to Announce 'Game-Changer' AR/VR Headset in January 2023

Friday June 24, 2022 2:52 am PDT by
Apple is "likely" to announce its long-rumored mixed-reality headset as soon as January 2023, Apple analyst Ming-Chi Kuo has reiterated. Concept render based on purported leaked information by Ian Zelbo In a detailed post on Medium, Kuo explained that Apple's headset will be a "game-changer" for the augmented-reality and virtual-reality market. Describing some of the headset's...