Apple’s CEO, Tim Cook, made an unanticipated appearance in China, where he offered his support to gamers during an event, emphasizing the significance of the Chinese market for the tech giant, especially as it grapples with growing challenges. The gaming enthusiasts convened at an Apple store in Chengdu, located in southwestern China, to engage in gameplay of “Honor of Kings,” a popular game crafted by TiMi Studio, a subsidiary of the Chinese tech behemoth, Tencent.
Cook highlighted the origins of the action-packed game “Honor of Kings” in Chengdu, remarking that it has since evolved into a worldwide sensation on the App Store. This endorsement came through a post on the Chinese social media platform Weibo. Cook also shared a video of himself enthusiastically supporting gamers at the tournament. “Honor of Kings” stands as one of the premier mobile games in China and a noteworthy contributor to the revenue generated by Apple’s App Store in the country.
Tim Cook’s trip to Apple’s third-largest market occurred barely a month after the release of the iPhone 15, the company’s flagship smartphone, which appeared to receive a relatively tepid response. This visit also coincides with Huawei’s efforts to stage a recovery in the mobile market after facing challenges.
According to a report from Counterpoint Research on Tuesday, sales figures for the iPhone 15 series during the initial 17 days of availability in China have declined by 4.5% when compared to the iPhone 14. This decline follows Huawei’s recent launch of a smartphone equipped with advanced semiconductor technology and 5G connectivity, a move undertaken despite ongoing U.S. sanctions that have aimed to prevent such developments.
In the past, Huawei held the title of China’s top smartphone manufacturer and represented a formidable rival for Apple. However, due to U.S. sanctions that curtailed its access to critical technology required for competition, Huawei’s ranking plummeted to sixth place. Yet, as recently as Monday, a report from Jefferies analysts revealed that Huawei has reclaimed its position as the leading smartphone manufacturer in China, surpassing Apple once again.
Ethan Qi, Associate Director at Counterpoint Research, conveyed via email to CNBC that Apple’s initial performance has indeed faced challenges, stemming from a multifaceted array of factors. Qi ascribed these challenges to a decline in consumer sentiment, the comparatively modest performance of the iPhone 15 when measured against its predecessor, the iPhone 14, and the intensifying competition within the high-end smartphone market. He noted that these cumulative factors have jointly diminished the initial appeal of Apple during the initial weeks of iPhone 15 sales.
