Apple chief Tim Cook made a surprise visit to China this week, greeting gamers in the southwestern city of Chengdu as his company faces slumping phone sales in its biggest market. In a post late Monday on his account on the Weibo social media platform, Cook said he had visited Apple’s Taikoo Li store in Chengdu and met young players of the “Honour of Kings” game, which is published by Chinese tech giant Tencent and is one of the most popular games worldwide. He wrote that the game’s energy was “off the charts,” urging fans to continue playing and competing.
The visit underscores China’s importance to Apple, the world’s largest smartphone maker by revenue and a key manufacturing base. But China has also emerged as a significant challenger to the iPhone, with local Chinese manufacturers like Huawei offering models with better performance and battery life while competing more aggressively on pricing. Last month’s launch of a high-end chip designed for China’s fast-growing 5G network suggests that rivals may be close to catching up to the iPhone in terms of technology despite U.S. sanctions that seek to prevent the sale of some of the latest chipmaking technology to Beijing.
In his remarks, Cook emphasized that Apple has a long-term commitment to the Chinese market and would continue to invest in the country. He also praised the hard work of employees in China and reiterated his belief that the company’s new products will significantly impact people’s lives in the region.
During the same speech, Cook also reaffirmed the importance of an alliance with China Mobile, the country’s leading mobile carrier, to speed up the sale of the iPhone. He said that the carrier has a large user base and can quickly bring new products to market.
Cook’s surprise trip comes after reports that the iPhone 15 has seen a weak start in China, which accounts for a substantial share of global sales and is a crucial driver of growth. Counterpoint Research estimated that the device saw a 4.5 percent decline in sales in the first 17 days after its release, worse than a 5.2 percent slump for the previous model, the iPhone 14.
Analysts have blamed a slowdown in consumption in China, tightening U.S. export controls on high-tech components and intensified competition from domestic Chinese smartphones that offer similar features at lower prices. Apple has also grappled with a lengthy legal battle over the iPad trademark, pursued by financially troubled Chinese firm Proview. The case could disrupt the production and sales of the tablet computer in the country. In the longer term, however, analysts believe that a strategic partnership with China and focusing on innovation should help Apple weather the current challenges. They have also pointed to the success of two major product lines developed under Cook’s tenure: AirPods and the Apple Watch.
