Apple’s CFO, Luca Maestri, faced a barrage of questions about an 8% tumble in China’s revenue, but he swiftly shifted the spotlight to brighter spots on the map. While China’s numbers were a bit gloomy, Maestri beamed about growth in other emerging markets.
“Take India, Saudi Arabia, Mexico, Turkey, Brazil, and Indonesia, for example. The sales figures are really starting to pop, and we’re thrilled,” Maestri shared during Apple’s Q2 earnings call. “These are locations where we are only beginning to tap into the market share.”
Despite this enthusiasm, the revenue dip to $16.37 billion in China during the quarter can’t be ignored. Yet, Maestri remains upbeat, emphasizing the significant populations and growing excitement for Apple products in these new markets.
However, it seems the picture isn’t as rosy everywhere. According to the numbers, net sales in the Americas slightly declined from $37.8 billion to $37.3 billion year-over-year. And sales in the “rest of Asia Pacific,” which includes some of these emerging markets, plummeted by 17%.
While Apple’s sales narratives might not be all sunshine and rainbows, Maestri points out that innovative financing solutions and trade-in programs are making Apple gadgets more accessible, especially in price-sensitive emerging markets.
Yet, even the promise of these burgeoning markets might not be enough to calm jittery investors. China, after all, is Apple’s third-largest market and now a fierce battleground with local giants like Oppo, Xiaomi, and a resurgent Huawei nipping at its heels.
On a brighter note, despite a 10% drop in iPhone sales globally and a slower pace in embracing AI, Apple still managed to outdo Wall Street forecasts, even triggering a 10% stock surge in after-hours trading, thanks to robust service revenue and a whopping $110 billion stock buyback.
As investors eagerly await more details on Apple’s teased generative AI ventures, all eyes are set on the upcoming Worldwide Developer Conference in June for potentially game-changing news.
