Apple posted in its latest earnings call that iPhone revenue for the Q4 2023 financial period reached $43.8 billion, up from $42.6 billion in the same quarter a year ago, revealing that the launch of the newest lineup contributed to that growth. However, as investors worry about the technology giant’s position in China, Apple has attempted to provide reassurance, stating that demand in this region remains strong despite Huawei’s mounting comeback.
Apple CEO Tim Cook said that in China, the company had four out of the top five best-selling phones in the region
In an interview with Reuters, Apple CEO Tim Cook said that the company set a quarter record for the iPhone in September. Though the Chief Executive did not specify which models were the most popular, Cook mentioned that four of the top five best-selling smartphones in urban China were the iPhone. We can assume that the iPhone 15 Pro and iPhone 15 Pro Max might have been in this list since both flagships provide tons of exclusive upgrades over last year’s iPhone 14 Pro and iPhone 14 Pro Max, as well as how they differentiate themselves considerably from the less expensive iPhone 15 and iPhone 15 Plus.
However, as much as Apple wishes to make investors less nervous about the situation, it cannot ignore the threat that Huawei possesses in China, as the proof is in the numbers. The company’s recently launched Mate 60 lineup shipped 1.6 million units in just six weeks, outselling the iPhone 15 family. Now, according to the latest forecast, Huawei is estimated to ship around 100 million smartphones in China next year, making things even more complicated for Apple, given that this market is of paramount importance. Apple said on Thursday that its overall sales in China dipped 2.5 percent, but that was due to declining Mac and iPad demand, not the iPhone.
Earlier, Qualcomm CEO Cristiano Amon said in the company’s earnings call that Huawei’s re-entry into the smartphone market will not negatively affect its relationship with other Chinese brands, suggesting that the threat is being over-estimated. Huawei’s biggest hurdle at this time is going beyond the 7nm process to mass produce the Kirin 9000S successor, for which SMIC, the foundry responsible for making the chipset, needs cutting-edge EUV machinery. We will see how Huawei attempts to develop improved SoCs for its rumored P70 launch next, but if it retains the Kirin 9000S in 2024 too, it will give companies such as Apple the edge in China once again.
News Source: Reuters
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