Apple’s Cook Visits China Amidst iPhone Sales Slowdown

Apple chief executive Tim Cook has made a public appearance at a supply chain conference in China, his third in the country this year, as the company faces an iPhone sales slowdown in the key smartphone market amidst stiff competition from domestic firms and uncertainty around the Chinese launch of its Apple Intelligence AI offerings.

In a video clip published ahead of the China International Supply Chain Expo, which begins in China on Tuesday, Cook said he values Apple’s Chinese partners “very highly”.

“We could not do what we do without them,” he said in response to a question from an online media outlet affiliated with state broadcaster China Central Television (CCT).

Cook told Ren Hongbin, chairman of the event organiser the China Council for the Promotion of International Trade, that it was his first time attending the expo.

Key market

Apple has been diversifying its supply chain away from China, but the appearance underscores the country’s continued importance to the iPhone maker, both for its manufacturing base and its position as the world’s largest smartphone market.

Apple’s revenue in the Greater China market, including mainland China, Hong Kong, Macau and Taiwan, fell 7.7 percent in the 12 months through September, according to figures released this month.

The latest iPhone 16 Pro launched in September saw a double-digit year-on-year decrease in sales in China during this year’s Single’s Day, the world’s biggest online shopping event, according to research firm Counterpoint.

Meanwhile domestic rival Huawei Technologies saw its handset sales grow 7 percent during the event, Counterpoint said.

Huawei on Tuesday released its latest flagship smartphone, the Mate 70, following the success of its return to 5G handsets last year with the Mate 60.

Charm offensive

Cook in March visited Shanghai, where he met local video game developers, a filmmaker and billionaire Wang Chuanfu, the founder of electric car giant BYD, and opened an Apple Store.

In October Cook met with top Chinese officials in Beijing, including the head of the Ministry of Industry and Information Technology and the minister of commerce.

Cook told officials that Apple would increase investment in China and thereby contribute to supply chain development.

Apple is currently negotiating with officials to obtain permission to launch Apple Intelligence in the country, while competitors such as Xiaomi and Huawei spin-off Honor have already introduced AI capabilities.