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What happened: Apple’s iPhones made up 24% of smartphones sold in China during the last three quarters of 2022, Counterpoint Research recorded. That was enough to make Apple China’s No. 2-selling smartphone brand for the year. It also buoyed Apple’s revenue in China, which has bounced back from 2020 lows. Why it matters: Apple CEO Tim Cook, along with Disney CEO Bob Iger and leaders from Alphabet, Palantir, and Microsoft, are expected to meet with a bipartisan group of lawmakers traveling to California to discuss China. Cook has recently been working to address supply chain issues in China, which have resulted in increased wait time for recent iPhone models. While U.S. government officials have in recent months taken a hard stance against China, restricting semiconductor production equipment exports, threatening to ban TikTok, and considering new meetings with Taiwanese officials. Where to see the impact: Cook faces a difficult position of dependency on China for existing production needs and revenue for Apple. Though many U.S. tech firms have limited exposure to China due to the country's internet restrictions, Apple and Disney are two notable outliers, thanks to the popularity of iPhones and Disney’s parks and movies in the country. The weight of that importance will likely be heard in these upcoming meetings, whether lawmakers are sympathetic or not. |
