Ap­ple rev­enue falls in Greater China re­gion per­cent per­cent

China Daily (Canada) - - ACROSS AMERICAS - By WIL­LIAM HENNELLY in New York williamhen­nelly@chi­nadai­lyusa.com

Ap­ple Inc’s rev­enue from the Greater China re­gion fell 33 per­cent year over year as the tech gi­ant re­ported earn­ings for its fis­cal third quar­ter on Tues­day.

The Cu­per­tino, Cal­i­for­nia com­pany posted quar­terly rev­enue of $42.4 bil­lion and net in­come of $7.8 bil­lion, or $1.42 per di­luted share, com­pared with rev­enue of $49.6 bil­lion and net in­come of $10.7 bil­lion, or $1.85 per di­luted share, in the year-ago pe­riod.

Still, Ap­ple sur­passed Wall Street ex­pec­ta­tions. The EPS of $1.42 was 12 cents bet­ter than es­ti­mates, and that likely helped shares surge in af­ter-hours trad­ing on the Nas­daq Stock Mar­ket, where they were up $6.78, or 7 per­cent, to $103.45, at 5:30 pm ET. The stock had closed down 67 cents in the reg­u­lar ses­sion.

Rev­enue in Greater China was $8.85 bil­lion, com­pared with $13.2 bil­lion in the 2015 quar­ter. Rev­enue fell 29 per­cent from the sec­ond quar­ter of 2016, when it came in at $12.49 bil­lion.

Sales of iPhones in the China re­gion were down 7 per­cent, ac­cord­ing to Bar­ron’s.

Ap­ple is fac­ing heavy com­pe­ti­tion from Chi­nese smart­phone mak­ers, which in­clude gi­ant Huawei Tech­nolo­gies Co Ltd, Xiaomi Inc, OPPO Elec­tron­ics Corp and new­comer Vivo.

Huawei shipped 25 per­cent more smart­phones in the first half of 2016, to 61 mil­lion units, the com­pany re­ported on Tues­day, and reg­is­tered a 41 per­cent in­crease in its con­sumer busi­ness.

Shen­zhen-based Huawei shipped 108 mil­lion phones in 2015, and ranks No. 3 in the world in units shipped be­hind Ap­ple and Sam­sung Elec­tron­ics Co Ltd.

The less- ex­pen­sive phones of­fered by Chi­nese man­u­fac­tur­ers also are more pop­u­lar than Ap­ple’s pricier ones with a key seg­ment of the do­mes­tic mar­ket: teenagers.

In­ter­na­tional sales ac­counted for 63 per­cent of Ap­ple’s quar­ter’s rev­enue in the quar­ter.

“We are pleased to re­port thirdquar­ter re­sults that re­flect stronger cus­tomer de­mand and busi­ness per­for­mance than we an­tic­i­pated at the start of the quar­ter,” said CEO Tim Cook. “We had a very suc­cess­ful launch of iPhone SE and we’re thrilled by cus­tomers’ and de­vel­op­ers’ re­sponse.”

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