Ap­ple sees con­tin­ued sales de­cline in China

29.8% how much Ap­ple quar­terly sales fell in China

China Daily (USA) - - ACROSS AMERICA - By AGEN­CIES and HENG WEILI in New York

Ap­ple’s sales in China are con­tin­u­ing their slide, ac­cord­ing to the iPhone maker’s quar­terly earn­ings re­lease on Tues­day.

Rev­enue from Greater China, once seen as Ap­ple’s next growth en­gine, fell 29.8 per­cent in the quar­ter after drop­ping 33 per­cent in the pre­ced­ing pe­riod. Rev­enue from Greater China had dou­bled in the year-ear­lier quar­ter.

The Cu­per­tino, Cal­i­for­nia tech gi­ant re­ported that its over­all rev­enue de­clined 9 per­cent to $46.8 bil­lion for the quar­ter that ended last month. Profit fell 19 per­cent to $9 bil­lion.

Still, Ap­ple sold 45.51 mil­lion iPhones in its fis­cal fourth quar­ter ended Sept 24, beat­ing the av­er­age an­a­lysts’ es­ti­mate of 44.8 mil­lion, ac­cord­ing to Fac­tSet StreetAc­count.

It was the third quar­ter in a row, how­ever, of fall­ing iPhone sales.

Ap­ple shares were down 2.1 per­cent at $115.75 in after-hours trad­ing on Tues­day. The stock hit a 12-month low of $89.47 in May but has been ris­ing since as in­vestor con­fi­dence re­turned.

Ap­ple fore­cast rev­enue of be­tween $76 bil­lion and $78 bil­lion for the cur­rent quar­ter. An­a­lysts, on av­er­age, had ex­pected $75.08 bil­lion, ac­cord­ing to Thom­son Reuters I/B/E/S.

That meant an­nual rev­enue fell for the first time since 2001, high­light­ing the slow­down in the smart­phone mar­ket as well as in­ten­si­fy­ing com­pe­ti­tion, par­tic­u­larly from Chi­nese ri­vals such as Xiaomi and Huawei.

An­a­lysts had ex­pected rev­enue of $46.94 bil­lion in the quar­ter, ac­cord­ing to Thom­son Reuters I/B/E/S.

Ap­ple’s net in­come fell to $9.01 bil­lion, or $1.67 per share from $11.12 bil­lion, or $1.96 per share, a year ear­lier. That beat the av­er­age es­ti­mate of $1.66 per share.

Mean­while in Bei­jing, Xiaomi un­veiled the Mi Note 2, sport­ing a curved screen sim­i­lar to Sam­sung’s Galaxy Edge. It sells for as much as 3,499 yuan ($516), co-founder Lei Jun said on Tues­day.

Xiaomi also showed off the Mi MIX con­cept phone de­vel­oped with de­signer Philippe Starck, fea­tur­ing a ce­ramic body and bezel-less screen for as much as 3,999 yuan.

Still, after blaz­ing its way to the top of China’s smart­phone mar­ket, Xiaomi has strug­gled to main­tain its stun­ning growth and fallen to No. 4 as ri­val brands Huawei, Oppo and Vivo cap­tured swathes of the mar­ket.

Be­tween July and Septem­ber, Oppo had 16.6 per­cent of the mar­ket, just past Vivo’s 16.2 per­cent, ac­cord­ing to cnet.com. As re­cently as the third quar­ter of 2015, both brands had mar­ket shares un­der 10 per­cent.

Huawei is now No. 3 with 15 per­cent and Xiaomi dropped to a 10.6 per­cent share, down from 14.6 per­cent from the year-ago pe­riod.

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