In today's third quarter earnings report, Apple revealed a significant drop in revenue from Greater China, which is down 33 percent year over year. Revenue from China was at $8.9 billion in Q3 2016, down from $13 billion in Q3 2015.
During the followup earnings call, Apple CEO Tim Cook said the company continues to be encouraged about growth in the country despite the decline in revenue and remains "very optimistic about growth opportunities."
He said Apple's underlying business is stronger in China than the results imply, with the iPhone install base in the country up 34 percent year over year. Cook cited statistics from China Mobile, one of the largest carriers in the country, which says it sells more iPhones than any other smartphone.
According to Cook, channel inventory reduction and currency headwinds have impacted business in the region and presented some significant economic challenges. Despite this, Cook continues to feel "really good" about Apple's business in China, pointing towards the opening of the 41st retail store in Greater China and a recent $1 billion investment in Didi Chuxing.
With revenue in China down 33 percent, Europe has regained its position as Apple's second biggest market after the United States, bringing in $9.6 billion in revenue during the quarter.





















Top Rated Comments
You don't really want to have all your high-tech industrial capacity located in another country, especially one that is becoming a military rival and potential future enemy.
Making everything in another country like China may be in the interests of corporations, but not necessarily in the greater national interest.
The problem is you can get incredibly good phones for half the price from Xiaomi (Mi 5) and Huawei (P9). As the middle class grows, so will consumption of Apple Products. I would argue that a lot of the fall in U.S Revenue comes from really bad exchange rate recently. The biggest issue is the lack of Apple Services in China. Chinese buy iPhones than use domestic services from Baidu and Tencent. If China wants to make it big in China, they're going to have to get their services here. But...
China has said they don't want foreign technology companies to have a deep penetration into the Chinese market. Basically, Apple needs to work closely with the Chinese government and placate it if it wants to sell its services there.
If anyone is shocked it's because you were born yesterday.