On Tuesday, Apple stated that it profits from China declined 14% from 2012 to US$4.6 billion in a quarter that ended on June 29. After over a year of intense rivalry from inexpensive smartphones that run an android operating system made by Google Inc., the Cupertino, California-based company's shine finally turned gloomy.
The figure represented a 43% plunge from the previous quarter. This further signified the first time revenue decrease in Asian regions like China, Hong Kong and Taiwan.
One of the reasons Apple's sales were weaker was due to the earlier launch of iPhone 5 in China in contrast to the iPhone 4S in 2012. Tim Cook, Apple's Chief Executive Officer, pointed through a conference call that the problem was the fact that customers wanted to pay less for a smartphone. Nowadays, cheaper smartphones in China performed better than before.
Also, the sales went not only to Apple's android competitors such as Samsung Elctronics Co. and HTC Corp., but also to brands that were made locally. This included Beijing Xiaomi Technology Co., Huawei Technologies Co. and Lenovo Group Ltd.
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