Lokesh Choudhary · · 1 min readApple stock jumps after buyback announcement, China sales show nuance
An Apple store in China / Photo credit: Apple
Apple reported a notable increase in quarterly revenue from China amid a decline in overall iPhone sales globally, Bloomberg wrote.
This announcement, coupled with news of a US$110 billion stock repurchase, propelled Apple’s shares by up to 7.9% in after-hours trading.
China, according to Apple CEO Tim Cook, represents 18% of Apple’s total net sales.
Although Apple has yet to disclose detailed geographical data or specific iPhone shipment numbers, third-party analysts estimate that higher average selling prices could explain the revenue increase despite fewer unit sales in China. Locally, consumers heavily prefer to purchase Apple’s newest releases as well.
Notably, last month, Apple removed Meta-owned WhatsApp and Threads from its App Store in China, following a 2023 law from Chinese authorities that requires the removal of unregistered or outdated apps on iOS’ and Android’s app stores.
Apple is also looking to incorporate Baidu’s generative AI tech into its products in China.
Another smartphone maker looking to capitalize on the AI boom is Huawei. The company recently reported a roughly 6x increase in profit. In addition to smartphones, Huawei also offers AI chips.
See also: Asian tech feels the heat as regulators bare teeth
Editing by Miguel Cordon and Dhania Putri Sarahtika
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