The Apple company. AAPL CEO Tim Cook visited China this week, a move that raised eyebrows due to the company’s declining sales in the region. Gene Munster of Deepwater Asset Management believes there was a larger message that Cook wanted to deliver to Xi Jinping administration.
What happened: Munster, a top Apple analyst, took to X, formerly Twitter, to express his concerns about Cook’s visit to China.
Munster noted that the visit was more significant than recent news about the Department of Justice’s (DOJ) antitrust lawsuit against the iPhone maker.
He suggested that Cook’s visit was to reassure Chinese authorities of Apple’s commitment to the country.
See also: Tim Cook’s ‘Buy Your Mom an iPhone’ Comes Back to Bite Apple in Justice Department Antitrust Suit
Munster also highlighted the alarming trend in Apple’s revenues in China, which fell 13% in December, and iPhone sales, which fell 24% in the first half of the March quarter.
He speculated that Cook’s visit was not a public relations stunt to boost iPhone sales but a strategic move to spare Apple any fallout from the iPhone ban or forced sale. Tick tock.
“I believe it was to send a message to the Chinese leadership that $AAPL is committed to China.”
Looking ahead, Munster predicted that China’s share of Apple’s sales will decline from 17% in 2023 to 15%, with India and the West making up for the decline.
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Because matter: Cook’s visit to China comes amid a series of challenges for Apple in the region. The company has been grappling with a significant decline in iPhone sales and has lost its position as the top smartphone seller in China.
These challenges have had a significant impact on Apple’s stock performance, with shares seeing a decline.
Despite these setbacks, Cook’s visit suggests that Apple is determined to maintain its presence in China, a market that has played a crucial role in its global success.
The outcome of Cook’s visit to China and its impact on Apple’s future will be closely watched by investors.
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Disclaimer: This content was partially produced with help from Benzinga Neuro and was reviewed and published by Benzinga editors.
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