Recently, Chinese Commerce Minister Wang Wentao met Apple CEO Tim Cook and he said his country holds opportunities for Apple as well as other companies, and asked the manufacturer to iPhone maker continues to build its business in China for "common development," according to a press release.
CEO Tim Cook said that China is an important partner in Apple's supply chain, and the company plans to increase investment in the country in the long term.
Apple is operating in a difficult environment in the key market of China, they need to overcome challenges in the country before releasing the iPhone 16. (Photo: Entrepreneur)
Last week, Tim Cook also opened Apple's newest flagship store in Shanghai, and met with key suppliers in China, according to media reports. He also attended the China Development Forum in Beijing, as China seeks to attract foreign investors amid global and regulatory uncertainty.
In the latest move, leading consulting, brokerage and asset management company Wedbush Securities said that Apple needs to overcome challenges in China, including the harsh macro environment and competition from China. Huawei, before releasing the iPhone 16 and “it all had to start with reaffirming Apple's presence in China”.
Wedbush Securities said that Tim Cook's latest trip to China is "dSigns Apple could double China's smartphone market”, this signal comes amid reports of a 24% drop in iPhone sales in China in the first six weeks of 2024.
Currently, Apple is operating in a challenging environment in its largest foreign market, China, as it faces stiff competition from local Chinese smartphone manufacturers. China, especially Huawei, whose consumer business is experiencing a resurgence in the country, following the launch of its Mate 60 smartphone.
Wedbush Securities added: “The timing of this trip is important because basically, Apple needs China and China needs Apple despite all the noise".
The COVID-19 blockade in China at the end of 2022 seriously disrupted Apple's supply chain, causing the technology company to diversify some production activities to countries such as India and Vietnam. . However, according to Wedbush Securities, the majority of iPhone manufacturers and suppliers will remain in China.
Currently, Apple is facing legal challenges in the US and EU. The US Department of Justice sued Apple last week, accusing the technology company of illegally maintaining a smartphone monopoly. The EU also recently officially opened an investigation into Apple related to so-called antitrust rules.
