Apple faces uphill battle to calm iPhone worries in China

Apple’s CEO, Tim Cook, has recently reached out to Wall Street to assure them that iPhone demand in China remains robust, despite facing competition from Huawei and the increasingly uncertain business climate for US companies in the region.

• Precedent: Apple has posted less revenue in China than some analysts had projected for the last quarter. Cook attributes this to weakness in the Mac and iPad sectors, as well as the impact of currency fluctuations.

• Push Back on Numbers: Despite a 2% decline in overall revenue from Greater China over the previous year, which exceeds the company's overall drop, Cook suggests that the iPhone is still making headway in the region. He notes that the various iPhone models are the top four best-selling phones in urban China.

• Remaining Positive: Despite challenges including China's expansion of US technology bans in government workplaces and competition from Shenzhen-based Huawei’s new model, Cook remains upbeat about China. He did not answer any direct questions about the situation during the post-earnings conference call.

• China's Importance: China remains crucial to Apple's operations as it represents their largest international market and serves as their major manufacturing hub. Cook points to the opening of a new Apple store in Wenzhou, in the Zhejiang province, as a sign of commitment to the market.

The iPhone 15, which went on sale on September 22, and the company's December quarter results provide a glimpse into the device’s performance and the overall health of Apple's business in the Chinese market. Investors will gain a clearer understanding when Apple announces its holiday results early next year.