Apple Inc. enjoyed a sharp rebound in China during the holiday period, when demand for the new iPhone 17 fueled its first $25 billion quarter in the region since the end of 2021.
The company generated sales of $25.5 billion from its greater China segment during a three-month span that ended Dec. 27. The revenue soared 38%, smashing Wall Street's average estimate of $21.8 billion and far outpacing total sales growth.
The numbers cap a surprising recovery for the company, which has struggled to regain momentum in China — a onetime growth engine. The revenue was Apple's second-highest quarterly total ever in the region, nearing a holiday-quarter record of $25.8 billion from four years ago.
Chief Executive Officer Tim Cook attributed the performance to a surge in smartphone upgraders. Switchers from other platforms also grew by a double-digit percentage, he said. That increased the installed base in greater China and mainland China to all-time records.
“It was the best iPhone quarter in history in greater China,” Cook said, adding that the iPhone 17 was the primary driver. The latest lineup includes upgraded designs for the Pro and Pro Max models, as well as a slimmer iPhone Air.
Cook added that retail store traffic in China grew by a double-digit rate as well. Moreover, the majority of buyers of non-iPhones, such as Apple Watches, iPads and Macs, are new to those product lines in China, he said.
Apple made inroads in other overseas markets as well. India set a December quarter record for the iPhone, iPad and Mac, as well as an all-time tally for services. “We really like what we see there,” Cook said, adding that India remains a strong opportunity given the company's still-modest market share.
Apple's earlier struggles in China stemmed from heightened competition with local players and restrictions on the use of foreign-made devices by government workers. Rivals also have moved more quickly to offer new formats. On that front, Apple is expected to introduce a foldable iPhone later this year that could prove popular in the region.
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