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Apple's sales in China fell by less than 1 per cent in last quarter, a mark of continuing decline for the US tech giant in one of its most important markets, as it tries to woo mainland officials while warding off growing competition.
The iPhone maker's sales in the Greater China market - which includes mainland China, Hong Kong, Macau and Taiwan - fell to US$15.03 billion in the three months through September from US$15.08 billion in the same period last year, according to the company's latest financial report. Revenue for the region in the 12 months ended September 28 also fell 7.7 per cent to US$66.95 billion. The outlook has been rosier in the rest of the world, with total sales up 6.1 per cent to $94.9 billion for the quarter.
This continues Apple's losing streak in the region. Greater China sales fell 6.5 per cent to US$14.7 billion in the second quarter, which the California-based company attributed primarily to lower iPhone and iPad sales.
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Apple's sluggish performance comes as the company awaits final approval from Beijing to launch its artificial intelligence (AI) services in mainland China. Chinese brands have been taking advantage of the absence of Apple Intelligence by rushing out their own AI-equipped smartphones.
Xiaomi and Honor, a Huawei Technologies spin-off, this week both launched new flagship handsets and touted their on-device AI capabilities.
Apple released its AI service on some of its newer iPhones as part of the iOS 18.1 update, but the feature has not been made available on devices purchased in mainland China. The company said a Chinese-language version of Apple Intelligence will launch in April, but it did not specify when it will be accessible to mainland users.
Amid mounting challenges, Apple CEO Tim Cook met last month with Chinese government officials during his second visit to the country this year.
Cook - who serves as chairman of the advisory board of Tsinghua University's School of Economics and Management, a role that provides access to China's state leaders - met Vice-Premier Ding Xuexiang on October 25 and pledged to expand investment in the country, according to a statement from Tsinghua.
The advisory board - which includes US business executives such as Bridgewater Associates founder Ray Dalio, Walmart CEO Doug McMillon, and Blackstone Group chairman Stephen Schwarzman, who also funds his own master's programme at the university - is perceived as a key "track 1.5" diplomacy channel for Beijing. China's former vice-president Wang Qishan has replaced ex-premier Zhu Rongji as honorary chairman.