Apple Inc. (NASDAQ:AAPL) Remains Resilient Reports Amid Drop In iPhone Sales In China In May

By
Ash Khandelwal
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580

Apple Inc. (NASDAQ:AAPL) reported a drop in iPhone sales in China after initial rebound as lockdowns eased after a drop in COVID-19 infections. Despite the drop, the U.S technology giant reported growth in revenue in other areas of business. This will help Apple remain resilient in one of its biggest markets.

Apple has remained Resilient During the COVID-19 Pandemic

Market data collected from third-party sources point a mixed picture for the company’s performance in China in May.  The company sold 3.6 million iPhones in May, compared to 3.9 million in April. Apple, however, sold 3.05 million iPhones in May 2019, and reported a 160% month-on-month rise in April, thanks to increased demand in China. The company also saw a rebound in sales as the economy was eased following COVID-19 lockdowns.

The company’s iPhone sales in China dropped 60% in February compared to a year ago. This was attributed to Apple’s closure of stores in the wake of COVID-19 lockdowns that saw economies across the world closed. Apple reopened many of its stores in China in mid-March.

According to a report by research firm, IDC, Apple sold more than 2 million iPhones to its retail partners in China in May. This represents a 25% month-on-month drop. Data from the China Academy of Information and Communications Technology shows that there was a 20% drop in smartphone shipment in China in May from April.

Apple is migrating the Mac to its own homegrown silicon

Apple is moving ahead with its plan to migrate Mac to its own homegrown silicon with questions raised over the ability and strength of its ARM chips to replace those from Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel Corporation (NASDAQ:INTC). It is yet to give a definitive answer even as developers waited keenly during this year’s Worldwide Developers Conference (WWDC).

Apple’s ARM-powered Macs will have in-built Rosetta 2 conversion software that helps translate some existing Intel apps automatically. The company has been assuring developers that ARM will offer them a whole new level of performance.

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