Can you imagine if the most popular app in the U.S. — more than Facebook, YouTube or WhatsApp — was an official White House app?
The idea sounds, frankly, crazy. But that’s more or less what’s happened in China, where the app currently ruling the App Store is one dedicated to President Xi Jinping.
Apple has cut iPhone prices in China to try and win back growth after falling demand for its smartphones. However, from the sound of things, the company isn’t totally sure this is going to be the guaranteed magic bullet it needs to turn things around.
In a new interview with NPR, Tim Cook strikes a note of caution when he says that, “We’ll see how that works out for us.”
Apple blamed falling smartphone sales in China for its weaker than anticipated holiday earnings last year, and now new data indicates that the iPhone suffered more than most in the East.
In fact, sales of Apple handsets fell twice as fast as the rest of the smartphone market as a whole.
Apple has increasingly focused on China as its future biggest market, but its future in the country may not be quite as rosy as once predicted.
Speaking at the Cayman Alternative Investment Summit, political scientist Ian Bremmer suggested that Apple won’t have much of a business in China “within five to 10 years max.” And it’s not Apple’s fault.
Qualcomm is revving up its legal battle with Apple. In a new court filing in Munich, Qualcomm demanded “significant fines” be put on the iPhone-maker for not complying with a previous court order.
Apple was barred from selling some iPhones in Germany at the end of 2018. The company pulled the iPhone 7 and iPhone 8 at its retail stores, but Qualcomm is crying foul that other third-party shops still had units in stock.
Foxconn, which promised to create 13,000 jobs with a $10 billion factory in Wisconsin, won’t be producing state-of-the-art TV screens here as planned.
The news may not come as a big surprise to critics of the deal, which gave the iPhone maker the richest subsidy package in the state’s history. Foxconn has already forfeited some of those tax credits after it missed 2018 hiring goals.
Investors are eagerly waiting to see all the numbers from Apple’s 2018 holiday quarter during today’s earnings call. Based on early reports, some of the numbers might come in even lower than expected.
Gulp.
Apple already warned investors that iPhones sales during Q1 2019 came in lower than expected, mostly thanks to problems in Greater China. Even after lowering revenue guidance, the company still could pull out a few surprises. However, most analysts remain worried that the iPhone sales slump will continue into 2020.
Apple CEO Tim Cook and CFO Luca Maestri are set to get on the phone with investors at 2 p.m. Pacific today. Per usual, Cult of Mac will be here live-blogging all the action with up-to-the-minute analysis on all the important numbers.
Come join the fun:
The Chinese phone market cratered in the final quarter of 2018, but iPhone sales in the country did even worse.
This poor showing is primarily a result of the high prices Apple charges for its handsets, according to an industry analyst.
Never sell your organs for an iPhone.
Most of us don’t need that advice, but one Chinese man, aged just 25, is now bedridden with organ failure after selling his kidney to buy the latest Apple devices eight years ago.
Apple shells out a total of $35 million every year to buy 50 business class airline seats from San Francisco to Shanghai.
The numbers were shared by United Airlines, which revealed that Apple is the airline’s biggest customer at San Francisco International Airport. While Apple’s products are, famously, “designed by Apple in California,” the majority of its supply chain is based in China. Tim Cook has also talked about the importance of China as Apple’s second-biggest market.
The HomePod smart speaker is finally launching in China, Apple’s second-most important market. Having previously been teased on Apple’s China website for early 2019, the company revealed over the weekend that HomePod will go on sale on Friday, January 18.
It launched in the U.S. back in February 2018, and has since expanded to the U.K., Australia, Canada, France, Germany, Mexico, and Spain.
As expected, Apple resellers have started cutting the price of the iPhone in China. Today, popular e-commerce platforms JD.com and Suning reduced the iPhone 8, iPhone 8 Plus and iPhone XR’s asking price — with some price tags dropping by as much as 22 percent.
For what it’s worth, the iPhone prices remain unchanged on Apple’s official website in China.
Sales of iPhones seem to be weaker than in previous years, and the Chairman of the Federal Reserve has an explanation: a drop in consumer spending in China.
The implication is that the slowdown in iPhone sales isn’t a result of anything Apple has done.
Apple has slashed the prices of certain iPhone models in China. Chinese iPhone vendors reportedly received the word from Apple that they can offer discounts on the iPhone 8, iPhone 8 Plus, iPhone XR, iPhone XS, and iPhone XS Max.
Of these, the biggest price reduction amounts to around $66 off the price off the iPhone XR. Other iPhones are receiving price cuts of around $59.
There’s no doubt that the iPhone is facing problems in China, but the extent to which this is specific to Apple is up for question.
While Tim Cook blames things like the burgeoning trade war between China and the U.S., analysts at Bank of America Merrill Lynch think Apple may be experiencing an “informal boycott” of its products.
It turns out Apple isn’t the only smartphone maker that’s suffering from falling sales in China. Samsung, one of the iPhone’s biggest rivals, is also expected to follow Apple in confirming lower than anticipated revenue for the fourth quarter of 2018.
The South Korean company’s warning, which will reportedly come on Tuesday, will reveal a 12 percent fall in year-on-year operating profit for the three-month period. Revenue is also expected to drop 5 percent.
A number of Chinese companies are reportedly boycotting Apple as a show of support for Huawei Technologies.
The Chinese Huawei brand overtook Apple in smartphone shipments this year. Recently, its chief financial officer was arrested in Canada for allegedly violating U.S. sanctions by doing business in Iran.
There’s now proof that Apple rushed iOS 12.1.2 out primarily to make changes to iPhones in China. We also have confirmation of exactly what the modifications are.
These were designed to convince a Chinese court that iPhones don’t infringe on two Qualcomm patents. The hope is that court will then reverse an iPhone sales ban that went into effect in that country last week.
Apple and Qualcomm have found yet another thing to disagree over in their long-running feud. A court in China recently issued an order banning Apple from selling several older iPhone models. Apple subsequently released an iOS update which it claims stopped it infringing on the software patents in the complaint.
However, Qualcomm is not satisfied, and insists that Apple is breaking the law by keeping all of its iPhone models on sale.
Apple is rushing to release an iOS update in China to resolve potential infringement of Qualcomm patents. The news follows a report stating that a Chinese sales ban of certain iPhone models would cost Apple millions of dollars a day.
“Early next week we will deliver a software update for iPhone users in China addressing the minor functionality of the two patents at issue in the case,” Apple said in a statement.
iPhone suppliers will reportedly consider moving away from China is U.S. trade tariffs hit 25 percent.
Sources say they will remain even if the U.S. introduces a 10 percent tax on smartphones, but they could be forced to “reassess the situation” should the Trump administration impose a higher rate on imported goods.
On paper, the recent arrest of Huawei’s chief financial officer, Meng Wanzhou, has nothing to do with Apple. But it could nonetheless wind up hurting the U.S. tech giant.
Here’s why.
A court in China has granted Qualcomm an injunction against Apple. The ruling bars Apple from importing and selling multiple iPhone models in China.
The order specifically bars Apple from selling the iPhone 6s, 6s Plus, 7, 7 Plus, iPhone 8, 8 Plus, and iPhone X. However, the iPhone XS, XS Max and XR should be good to go.
Apple’s HomePod speaker is finally set to launch in the second-most important market for the iPhone maker.
The Chinese version of Apple’s website was updated today announcing that the HomePod will finally land in Greater China during early 2019.
President Trump says that the U.S. and China have come to an agreement to hit pause on the escalating trade war between the two countries.
Trump’s comments follow on from the G-20 summit in Argentina, in which he met with Xi Jinping, president of the People’s Republic of China. The 90-day delay on tariffs will cause a sigh of relief for executives at Apple, since the iPhone was recently threatened with additional tariffs.
