During its fourth quarter 2020 financial earnings call, Apple announced that its earnings in China were down $7.9 billion. That’s a drop of 28.9% from this time last year when it earned $11.1 billion, and is also less than last quarter’s $9.33 billion.
According to Apple CEO Tim Cook, “Greater China is the region that was most heavily impacted by the absence of the new iPhones during the September quarter”.
“Still, we beat our internal expectations in the region, growing non-iPhone revenue strong double digits and iPhone customer demand grew mid-September,” he said during the company’s earnings call on Thursday.
Additionally, the new products in the year ago quarter were a higher percentage of iPhone sales than they were in other regions.
“So hopefully that explains what’s going on in China,” Cook said.
In terms of the market, the 5G in China is fairly advanced.
“They’re forecasting 600,000 base stations by the end of the year. And so we’re entering the market at a very good time, and with the reception that we’ve gotten so far; we’re very confident there,” the Apple CEO mentioned, adding that the company is confident it will grow this quarter in China.