Having gone from major growth driver to weak spot before, Apple's Greater China business has once again proven to be the proverbial banana skin on the company's road to another record-breaking holiday quarter.
When Apple CEO Tim Cook announced a downward revision of the company's revenue guidance for the December quarter last week, he attributed “most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline” to iPhone, Mac and iPad sales across Greater China. In his statement, Cook blames China's recent economic slowdown and rising trade tensions for his company's lackluster performance in the country but the high prices of Apple's latest flagship iPhone models may also have played a part.
As the following chart shows, Apple's China business has grown nearly twentyfold since the company entered the Chinese phone market in 2010. In Apple's fiscal year 2018 (which ended September 27), Greater China accounted for 20 percent of the company's revenue, virtually unchanged compared to the year before.
After its business in China went from being a key growth driver to a weak point, Apple's business in China has once again proven to be the proverbial banana peel on the company's way to another record-breaking holiday season.
announced a downward revision to the company's revenue forecast for the December quarter last week , he attributed "the vast majority of our revenue decline to our forecast and over 100 percent of our year-over-year global revenue decline" to iPhone, Mac, and iPad sales across China. In his statement, Cook blamed China's recent economic slowdown and rising trade tensions for his company's weak performance in the country, but the high prices of Apple's latest flagship iPhones may also have played a role.
As the following chart shows, Apple's business in China has grown almost twentyfold since the company entered the Chinese phone market in 2010. In Apple's fiscal year 2018 (ending September 27), China contributed 20 percent to the company's revenue, remaining virtually unchanged from the previous year.
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