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Apple jumping off its horse in the important (and long-struggling) Chinese market seems to be paying early dividends.
"We are seeing – in the iPhone space, we have seen better performance year after year in the last weeks of the quarter compared to the full quarter or November and December, which was kind of – seems to be the" said Apple CEO, Tim Cook, to Wall Street analysts.
Cook cited three reasons for the much-desired stabilization in China.
<p class = "canvas-atomo canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "First, Cook said that Apple reduced the price on the iPhone in China to stimulate demand. Second, Cook credited the Chinese government's stimulus efforts to help stimulate demand for consumer goods and, ultimately, changes in the way Apple accepts. iPhones for trade-ins& nbsp; and the financing of new handsets was well received in the quarter. "First, Cook said that Apple cut the iPhone price in China to stimulate demand." Second, Cook credited the Chinese government's stimulus efforts as helping to stimulate demand for consumer goods and, finally, changes in the way Apple accepts the iPhones for exchange and financing of new devices were well received in the quarter.
<p class = "canvas-atam canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cook also gave a hint to & nbsp;improved trade rhetoric between the US and China& nbsp; as growing interest in iPhones. Cook also gave a tip to improve trade rhetoric between the US and China as a growing interest in iPhones.
"I think it's a set of all these things, and we certainly feel a lot better than we did 90 days ago," added Cook.
Sales in China were still in the last quarter of Apple, however. Apple's sales in major China fell 22 percent to $ 10.2 billion from a year earlier. But the percentage change was noticeably better than the 26% decline in the quarter ended in January.
High in China
Customers try out iPhones while shopping at an Apple Store in Beijing, China, Friday, October 20, 2017. (AP Photo / Mark Schiefelbein)
That and Cook's tone on the call at least gave the impression that Wall Street things in China are improving.
The deal is vital to Apple, accounting for about 20% of its annual sales. Apple has been having problems in the country for some time, while Chinese consumers understood the high price of the iPhone X. In addition, the market is awash with equally impressive – and often cheaper – smartphones from competitors Samsung and Huawei.
"Apple shares were trading bullish after closing as we believe the company's quarterly guidance for the June quarter supports the view that we are seeing signs of stabilization / decline in demand for iPhone (particularly in China) with solid double-digit growth in Apple services. (+ 16% y / y), "Wells Fargo analyst Aaron Rakers wrote in a note to clients.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Apple shares rose 6% in the premarket in Wednesday.In addition to one shift in China, & nbsp;Apple also raised its dividend by 5 percent and said it will repurchase another $ 75 billion in stockApple shares plummeted 6 percent in the premarket on Wednesday, in addition to a turn in China, Apple also increased its dividend by 5 percent and said it will repurchase another 75 billion shares. .
Finally, it is not clear when Apple will start raising its prices again in China. Maybe when your first iPhone 5G is available (Cook avoided the question about the launch time of 5G on the call). But for now, it seems the cheaper iPhones in China – at the expense of maintaining Apple's lucrative profit-making structure – did the trick.
Finally, Tim.
<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Brian Sozzi is general editor and co-host of "The First Trade" on Yahoo Finance. Follow him on Twitter @BrianSozzi"data-reactid =" 40 ">Brian Sozzi is general editor and co-host of "The First Trade" on Yahoo Finance. Follow him on Twitter @BrianSozzi
<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Read the latest from Sozzi:"data-reactid =" 41 ">Read the latest from Sozzi:
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