Apple’s China Sales Remain Weak Spot in Otherwise Solid Quarter

Apple Inc., the world’s most valuable company, reported weaker sales in China than anticipated last quarter, raising fresh concerns about one of its most important regions. 

Revenue in greater China fell slightly to $15 billion from a year earlier, the company said in a statement Thursday. Analysts had estimated $15.8 billion.

Overall revenue edged past Wall Street projections — helped by global iPhone demand — but the results show that the company is still struggling to rebound in a key market. The company faces intense competition from local brands in China, which still serves as Apple’s main manufacturing hub. It’s the tech giant’s third-biggest source of revenue, after the Americas and Europe.

The concerns weighed on shares in late trading, sending them down more than 1%. The stock had been up 17% this year through Thursday’s close, fueled by optimism about Apple’s AI progress.

Total sales rose 6.1% to $94.9 billion in the period, which ended Sept. 28, the company said in a statement Thursday. Analysts had estimated $94.4 billion.

The company introduced the iPhone 16 in September, helping spur upgrades. It also updated Apple Watches and released new AirPods. Those consumer devices account for the majority of the company’s revenue. 

Investors have been betting that Apple Intelligence — the company’s new suite of AI features — will help fuel device sales. But the software debuted weeks after the iPhone went on sale, and many of its biggest features are still months away.

Apple previously signaled that sales growth would be about 5%, with its services business performing particularly well. Revenue from that division did reach a record high in the period, climbing to $25 billion. But that was just short of the $25.3 billion that Wall Street predicted.

Apple didn’t provide a forecast for the holiday quarter, but it typically gives some guidance during its post-results conference call. With current Chief Financial Officer Luca Maestri moving to a smaller role, Thursday’s call may be his last. Maestri will be replaced by deputy Kevan Parekh. 

Revenue from the iPhone came in at $46.2 billion, beating estimates of $45 billion. That’s up 5.5% from a year earlier. The business may get another boost in 2025, when the company is planning to release a new low-end iPhone SE with Apple Intelligence — as well as more significant hardware changes to its flagship models.

But other product divisions fell short of analysts’ estimates last quarter. That included the iPad business and Apple’s wearables division. The Mac unit was in line with projections.

This article was generated from an automated news agency feed without modifications to text.