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Apple ’s chief fiscal officer Luca Maestri gainsay investor worries over an8 % drop in China revenueby noting that sales in other emerging markets are growing .
“ When we start count at space like India , like Saudi , like Mexico , Turkey , Brazil … and Indonesia , the routine are getting large , and we ’re very glad because these are grocery store where our securities industry share is [ currently ] low , ” Maestri said Thursday during Apple ’s 2nd - stern earnings call .
Revenue decline to $ 16.37 billion in China during the second quarter .
“ The populations are with child and growing , and our products are really make a tidy sum of progress within those markets , ” continued Maestri . “ The level of excitement for the steel is very mellow . ”
One thing Maestri said there is falsifiable : The population in emerging markets are , in fact , large and grow . But Apple ’s growing in those region is n’t as rosy a picture as the executive attempted to paint , harmonize to available information .
Net sales in the Americas — which would let in places like Brazil and Mexico — were down slightly year - over - year from $ 37.8 billion to $ 37.3 billion , according toApple ’s Q2 2024 paper . Sales in the “ ease of Asia Pacific , ” which would let in emerging markets like India and Vietnam , were down 17 % from $ 8.1 billion in the second - quarter of 2023 to $ 6.7 billion as of March 31 .
To flirt devil ’s counselor , Apple ’s falling sale in those regions may have more to do with pricing than hype for the product .
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Maestri noted that Apple has put in several financing solution and business deal - in programs that “ trim the affordability threshold , ” so that client can buy in the top intersection chain of mountains .
“ That is very valuable for us in develop markets , but specially in emerging market where the affordability issue are more marked , ” enunciate Maestri .
Still , point to the pharos of Bob Hope that could be emerging markets may not be enough to settle down investors . China is Apple ’s third - bombastic market , and it has become a battlefield of usurious competition with domesticated company like Oppo and Xiaomi dominating the market . fit in to Counterpoint Research , Huawei has seen a massive swing in the country after being completely sideline by U.S. sanctions . The house ’s phone sale increased almost 70 % from the former year , while Apple ’s light 19 % . In September 2023,Beijing levy banson the iPhone for government officials in the work , echoing U.S. action against Huawei .
China and emerging markets are n’t the only downers on Apple ’s balance sheet this quarter . The company also report a 10 % drop in iPhone gross revenue across all markets . Apple ’s slow adoption of AI versus competitors like Google and Microsoft have also potentially played a role in diminish iPhone sales .
Despite unimpressive hardware figure , Apple still pull off to beat Wall Street outlook . It also summoned a stock hike ofmore than 10%in after - hr trading , fueled by both an increase on services revenue and a monolithic $ 110 billion descent redemption — a jump over last year ’s $ 90 billion purchase .
Investors on the call tried to get Maestri and Apple CEO Tim Cook to divulge some more item about its coming generative AI launches , which Apple has fluff over the last few months , but the executives would only reveal that promulgation were impendent .
We ’ll be keep our eyes out for Apple ’s Worldwide Developer Conference in June for more news .
