Tim Cook's latest business trip to China took place in the context of declining iPhone sales here. Apple has also just opened the world's second largest Apple Store in Jing'an district, Shanghai. According to local media, this store is second only to the Apple Store on Fifth Avenue, New York.
On March 20, Cook wrote on Weibo “Hello Shanghai” by Chinese. He also expressed his joy at returning to the city and revealed that he spent the whole morning enjoying a traditional indigenous breakfast, including xiao long bao and soy milk. He also took a selfie by the famous Shanghai Bund with actor Zheng Kai.
In Shanghai, China's financial center, Apple now has eight stores, the most of any city in the country. There are currently 47 Apple Stores in 24 cities across mainland China.
The new store comes as Apple tries to fend off competitors and revive sales in a volatile market with growing headwinds, from economic recession to geopolitical tensions and rising nationalist sentiment.
In 2023, Apple took the No. 1 position in the Chinese smartphone market for the first time, with a record market share of 17,3%, according to IDC Research. However, in the first six weeks of 6, iPhone sales in the country dropped 2024% from a year ago, according to Counterpoint Research. Apple's market share lagged behind Vivo, Huawei and Honor in the same period, while rival Huawei's sales increased 24%.
Cook's visit marks his third to China in a year, underscoring the market's importance to Apple as its largest foreign market and a key part of its supply chain. manufacture.
“China remains an important market for Apple, especially in the premium segment above $800, where they hold a dominant position,” said Ivan Lam, senior analyst from Counterpoint. Mr. Lam commented, with the revival of Huawei and domestic smartphone brands, Apple is proactively increasing its presence, taking advantage of flagship stores to promote iPhone.
Earlier this month, Apple announced it would expand its research center in Shanghai to support all of its product lines and revealed plans to open a new applied research lab in Shenzhen by the end of the year.
Daniel Ives, managing director and senior equity analyst at Wedbush Securities, calls China the "heart and lungs" of Apple's growth strategy.
Also on March 20, Cook held an information sharing session with three Apple suppliers – BYD, Lens Technology and Everwin Precision Technology – at the Shanghai office. Here, he told a group of reporters: “There is no supply chain in the world more important to Apple than China's supply chain.”
He met Wang Chuanfu, founder and chairman of BYD, the world's largest electric vehicle manufacturer, according to a video he posted on his Weibo account. He praised Chinese-owned suppliers “the world's most advanced manufacturing system”, theo China Daily.
The Apple chief also visited a film production studio, spoke with mobile game developers and posed for photos with crowds of shoppers and employees, according to his social media posts.
Apple still has many domestic fans. More than 100 of them lined up overnight to be among the first to enter the new store or take a photo with Cook. Others are planning to visit the new Apple Store.
One day later, on March 21, the US Department of Justice sued Apple because it said the iPhone ecosystem was a monopoly force, affecting consumers, developers and rival phone companies. The government does not rule out the possibility of splitting up one of the world's largest enterprises. The lawsuit claims the company's anti-competitive practices extend beyond the iPhone and Apple Watch, mentioning advertising, browsers, FaceTime and news.
In a statement, the Department of Justice said that to retain iPhone users, Apple blocked cross-platform messaging apps, limited third-party wallet and smartwatch compatibility, and disrupted segment of non-App Store programs and cloud streaming services.
The lawsuit could force Apple to make changes in some of its most valuable businesses, including the iPhone, Apple Watch and services.
(According to CNN, CNBC)
