Apple CEO Tim Cook visited China for the second time in 2024, reflecting the company’s growing focus on its crucial overseas market. The trip, which Cook announced on Chinese social media platform Weibo on Tuesday, highlights the tech giant’s strategy to counter declining sales in China as competition with domestic brands like Huawei intensifies.
The visit comes at a critical juncture for Apple, as the world’s leading phone maker strives to regain ground amid a slowing Chinese economy and reduced consumer spending. Despite its popularity in China, Apple has faced pressure from homegrown competitors, with its market share shrinking significantly over the past year.
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According to data from market analysis firm Canalys, Apple ranked as the sixth-largest smartphone vendor in China during the second quarter of 2024, down from third place in the same period in 2023. This drop highlights the increasing challenge Apple faces in maintaining its foothold in a market that has historically been key to its global success.
Engagement with Chinese Students
A central theme of Cook’s trip was Apple’s support for sustainable practices. In a post on Weibo, Cook revealed that he had met with students from China Agricultural University and Zhejiang University, who are using Apple products like iPhones and iPads to implement sustainable farming techniques. This initiative aligns with Apple’s broader efforts to promote environmentally friendly technology and position itself as a socially responsible company.
Cook’s visit is not solely about promoting products—it is about highlighting Apple’s commitment to innovation that benefits society. The engagement with students also reflects Apple’s interest in nurturing future talent and encouraging the use of its technology in educational and practical fields.
Exploring Beijing with Chen Man
During his trip, Cook shared a video on Weibo in which he was seen exploring a historic district of Beijing alongside renowned Chinese fashion photographer Chen Man. The video, which captured Cook’s excitement about being back in Beijing, showed the Apple CEO embracing the city’s rich cultural heritage. In the caption, Cook wrote, “It’s great to be back in Beijing.”
This cultural exploration adds a personal touch to Cook’s business visit, signaling Apple’s continued investment not only in China’s market but also in its cultural and social dynamics.
Sales Performance and Growing Competition
Despite reporting a $21.4 billion profit on $85.8 billion in revenue for the three months ending in June 2024—a 5% increase from the previous year—Apple’s sales in China have been under pressure. The company has faced increasing competition from Chinese tech giants like Huawei, which launched new smartphone models at the same time as Apple’s iPhone 16 series in September 2024. This simultaneous launch spurred widespread discussions about the innovations from both companies.
Nevertheless, the iPhone 16 series saw a strong sales performance in its early weeks. Research from Counterpoint showed that sales of the iPhone 16 increased by 20% compared to the iPhone 15 series in 2023, with even higher growth rates for the iPhone 16 Pro and Pro Max models, which posted a 44% increase in sales compared to their predecessors.
Apple’s Long-Term Commitment to China
Cook’s latest visit to China follows his March 2024 trip, during which he inaugurated a new Apple store in Shanghai, the company’s second-largest retail outlet worldwide. At that time, Cook reiterated Apple’s long-term commitment to the Chinese market and its crucial supply chain. “There’s no supply chain in the world that’s more critical to us than China,” Cook stated.
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This latest trip signals Apple’s determination to maintain its presence and success in China, a market that remains integral to the company’s global strategy despite recent challenges. By continuing to engage with local consumers, businesses, and students, Apple is looking to secure its position in an increasingly competitive landscape.