Tim Cook, CEO of Apple, made an unexpected trip to China to encourage gamers at an event, showing the significance of the market to the tech behemoth, even as it is encountering various issues. His visit came shortly after the launch of the iPhone 15, the firm's principal smartphone, which encountered a lackluster reception. According to Counterpoint Research, the iPhone 15 line's unit sales in China over the first 17 days after its launch dropped 4.5% in comparison to the iPhone 14.
Tim Cook, the Chief Executive Officer of Apple, made a surprise visit to China to show his support of gamers at an event. He highlighted the considerable importance that the market has to the company, which is facing increasing challenges.At an Apple store in Chengdu (southwestern China), people playing the "Honor of Kings" game developed by a Tencent subsidiary, TiMi Studio, were present. On the Chinese social media platform Weibo, Cook stated that the action-filled Honor of Kings first evolved in Chengdu and is now a globally-known App Store feature. Following this, he posted a video of himself applauding the gamers participating in the tournament. Honor of Kings is a primary source of profits from the App Store in China and is one of the most sought-after mobile games there.As the new iPhone 15 was recently launched to a tepid response and Huawei is attempting to re-establish itself in the mobile market, Cook's trip to the third-largest market of the company takes place.
According to Counterpoint Research, sales of the iPhone 15 series in China over the first 17 days since its launch have declined by 4.5% compared to the iPhone 14. This news comes after Huawei's quiet release, last month, of a 5G-enabled smartphone featuring a high-end chipset despite U.S. sanctions aiming to prevent it from doing so. Huawei was the leading smartphone maker in China and Apple's biggest competitor prior to the U.S. sanctions obstructing its access to necessary technology, leading to a fall to the sixth spot. However, a report from Jefferies analysts on Monday stated that Huawei has once again taken the No. 1 position in China, overtaking Apple.
"The onset of the iPhone 15 has been a challenging task for Apple, which is a result of a confluence of variables," stated Ethan Qi, Associate Director at Counterpoint Research, in an email to CNBC. According to Qi, the reasons include dwindling consumer morale, the iPhone 15's failure to achieve desired sales compared to the iPhone 14, and elevated rivalry in the premium smartphone sector. He further commented that "all these components have together taken away the magnificence from Apple in the early weeks of iPhone 15 sales."
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