Is China Growing Tired of Apple?

China has been Apple's (NASDAQ: AAPL  ) hottest growth region for several years, yet the Mac maker posted a steep sequential decline in its "Greater China" segment last quarter. Macroeconomic factors have played a part, but CEO Tim Cook also acknowledged that it wasn't clear why sell-through in Hong Kong fell 23%. One challenging quarter isn't the end of Apple's growth story in China, but how concerns should investors really be?

In the following video, Fool analysts Evan Niu, CFA, and Eric Bleeker, CFA, discuss where Apple still has opportunities and challenges in the Middle Kingdom.

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The relevant video segment can be found between 5:25 and 8:39.


Read/Post Comments (4) | Recommend This Article (4)

Comments from our Foolish Readers

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  • Report this Comment On July 30, 2013, at 9:39 PM, larryw101 wrote:

    It seems that Evan Nu does nothing but bash Apple. In another article he wrote today, and I'm quoting, he states "everyone loves Samsung". What an irresponsible comment to make. What proof does he have to back up that statement? He obviously must be shorting the stock.

    This type of constant slanted journalism from this author only goes to discredit Motley Fool.

    I hope MF sees this as well.

  • Report this Comment On July 30, 2013, at 10:29 PM, ScottAtlanta wrote:

    Sounds like trouble for Apple to lose market share in urban, read wealthy, centers like Hong Kong. But beyond that, if they will always maintain 30-40% margins .....then they will have a tough sell to the vast majority of China's population (much less significant other areas of world such as India) when the average income is so, so low. I guess those are the "macro" factors.

  • Report this Comment On August 01, 2013, at 12:19 AM, TMFNewCow wrote:

    Fool contributor Evan Niu, CFA, owns shares of Apple.

    -- Evan

  • Report this Comment On August 01, 2013, at 1:00 AM, CoreAndExplore wrote:

    Supply chain problems continue as Apple works to try and consolidate ownership of many suppliers, meanwhile, Samsung and others take advantage of any disruptions and compete aggressively on price. Considering the market share they've eked out without a China Mobile deal as of yet, Apple has done remarkably well IMO. Aside from all of this, the macro effects a cooling Chinese economy certainly add to the slow-down.

    Even if ASPs decline markedly with the introduction of a cheaper iPhone in emerging markets, sales volume could spike tremendously in China, especially if you throw a China Mobile deal into the mix, which Cook has intimated to be likely in the near future.

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