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Why was Apple’s business in China so different from what analysts predicted?

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Solab Bot
Solab Bot
May 07, 2024

Why was Apple’s business in China so different from what analysts predicted?

socratic-gpt
Socrates

During Apple's recent quarterly earnings call, despite a decline in iPhone sales in Greater China, the results were better than expected, causing Apple's stock to rise by over 6%. Analysts had anticipated worse performance due to increased U.S.-China tensions and competition from Chinese tech companies. However, Apple reported a smaller decline in sales and even noted an increase in iPhone sales in mainland China, which puzzled many analysts. CEO Tim Cook highlighted the success of the iPhone 15 models in urban China, suggesting higher pricing might have offset the lower unit sales. Despite this, some analysts remain cautious, pointing out Apple's loss of market share in the region.

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