Apple's Q3 2016 Revenue Drops 33% in Greater China as Europe Regains Position as Second Biggest Market - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple's Q3 2016 Revenue Drops 33% in Greater China as Europe Regains Position as Second Biggest Market

by

china-flagIn today's third quarter earnings report, Apple revealed a significant drop in revenue from Greater China, which is down 33 percent year over year. Revenue from China was at $8.9 billion in Q3 2016, down from $13 billion in Q3 2015.

During the followup earnings call, Apple CEO Tim Cook said the company continues to be encouraged about growth in the country despite the decline in revenue and remains "very optimistic about growth opportunities."

He said Apple's underlying business is stronger in China than the results imply, with the iPhone install base in the country up 34 percent year over year. Cook cited statistics from China Mobile, one of the largest carriers in the country, which says it sells more iPhones than any other smartphone.

According to Cook, channel inventory reduction and currency headwinds have impacted business in the region and presented some significant economic challenges. Despite this, Cook continues to feel "really good" about Apple's business in China, pointing towards the opening of the 41st retail store in Greater China and a recent $1 billion investment in Didi Chuxing.

With revenue in China down 33 percent, Europe has regained its position as Apple's second biggest market after the United States, bringing in $9.6 billion in revenue during the quarter.

Tag: China

Top Rated Comments

134 months ago
Maybe Tim will give a crap about everyone in Europe again now..
Score: 10 Votes (Like | Disagree)
Cole Slaw Avatar
134 months ago
Of course there is. Now more than ever. Why put all of you eggs on foreign soil where they will stomp on you without notice. Where they will steal your intellectual property without blinking. Where Foxconn and the rest of the suppliers are selling your iPhone parts to be counterfeited. Now is the best time. It's not about cheap labor anymore. The stakes are far far bigger.
There's truth there.
You don't really want to have all your high-tech industrial capacity located in another country, especially one that is becoming a military rival and potential future enemy.
Making everything in another country like China may be in the interests of corporations, but not necessarily in the greater national interest.
Score: 2 Votes (Like | Disagree)
rp2011 Avatar
134 months ago
Interestingly enough, Foxconn itself has automated 60,000 jobs this past year. Automation is a Chinese government policy to become more competitive.

http://www.theverge.com/2016/5/25/11772222/foxconn-automation-robots-apple-samsung-smartphones
http://uk.reuters.com/article/us-china-robots-forecast-idUKKCN102104

So, really, there's no need for Apple to build anything in America. And technically, it's not even Apple building these products, but Foxconn and other suppliers. Foxconn itself is diversifying its locations and manufacturing. Ideally, Foxconn would open a plant in the U.S. but I doubt it'll do it until it has its automation system down as there's no way it's going to pay U.S employees $15+/Hr to make computer components.

What Apple should do is some kind of joint venture with an online services company like Baidu or Tencent. China wants its domestic companies to benefit from Apple's growth, not loose to it. That's what I mean by placate, Tim needs to convince China that Chinese companies will benefit from Apple's success.

The ideal compromise, I think, is that Apple provides the technical infrastructure, while Baidu/Tencent/Alibaba provide the content (movies, games, TV Shows). Apple can work with U.S content partners as a middleman to bring more TV Shows/Music/Movies to China. Basically, Apple needs to be a middleman, something it desperately doesn't want to do. But, it will need to change its way of doing business to gain traction in China. China will outright block Apple services if it feels it'll damage domestic companies.
Of course there is. Now more than ever. Why put all of you eggs on foreign soil where they will stomp on you without notice. Where they will steal your intellectual property without blinking. Where Foxconn and the rest of the suppliers are selling your iPhone parts to be counterfeited. Now is the best time. It's not about cheap labor anymore. The stakes are far far bigger.
Score: 2 Votes (Like | Disagree)
134 months ago
China's middle class is still growing and the opportunities are still huge. But after bringing the technologies and know how to build these gadgets did we think we would forever loom over them and they not build stuff themselves and then not impliment nationalistic restrictions and tarifs like the kind Trump and others want to impliment on them?

If anyone is shocked it's because you were born yesterday.
It's not that, it's the price point for mass consumption. Just about everyone who has the money buys an iPhone. They're hugely popular. It's not uncommon to walk into a private school in China and see kids with Apple Watches, iPhones, and iPads. Everyone loves Apple.

The problem is you can get incredibly good phones for half the price from Xiaomi (Mi 5) and Huawei (P9). As the middle class grows, so will consumption of Apple Products. I would argue that a lot of the fall in U.S Revenue comes from really bad exchange rate recently. The biggest issue is the lack of Apple Services in China. Chinese buy iPhones than use domestic services from Baidu and Tencent. If China wants to make it big in China, they're going to have to get their services here. But...

China has said they don't want foreign technology companies to have a deep penetration into the Chinese market. Basically, Apple needs to work closely with the Chinese government and placate it if it wants to sell its services there.
Score: 2 Votes (Like | Disagree)
winston.x Avatar
134 months ago
Has Tim ever not been optimistic about something??
Score: 2 Votes (Like | Disagree)
rp2011 Avatar
134 months ago
China's middle class is still growing and the opportunities are still huge. But after bringing the technologies and know how to build these gadgets did we think we would forever loom over them and they not build stuff themselves and then not impliment nationalistic restrictions and tarifs like the kind Trump and others want to impliment on them?

If anyone is shocked it's because you were born yesterday.
Score: 2 Votes (Like | Disagree)

Popular Stories

apple intelligence black

Apple Intelligence Coming to China in December With iOS 27.3

Wednesday October 14, 2026 1:24 pm PDT by
Apple plans to bring Apple Intelligence to China in iOS 27.3 after two years of regulatory delays, reports Bloomberg. The launch will include basic Apple Intelligence features for things like photo editing, but Siri AI won't be available. Image Playground and the newer version of Genmoji will be missing, plus text generation tools will be limited. The South China Morning Post today reported...
iOS 27

Apple Says iOS 27.3 Beta Coming Next Week

Friday October 30, 2026 2:45 pm PDT by
Apple today announced that the first iOS 27.3 developer beta will be released next week and enable some Apple Intelligence features in China. In a press release shared on the Apple Newsroom website in China, Apple said the beta will be released on Wednesday, November 4, but that likely means Tuesday, November 3 in the U.S. due to time zone differences. Apple said iOS 27.3 will then be...
Tim Cook Chengdu China

Tim Cook Visits China for the Third Time in 2026

Monday October 12, 2026 6:54 am PDT by
Tim Cook is visiting China for the third time this year, with talks in Guangdong focused on expanding Apple's manufacturing and sales operations, the South China Morning Post reports. This is Cook's first China trip in his capacity as Apple's executive chairman. He moved into the position on September 1 when John Ternus took over as CEO. Apple has said part of Cook's work involves...
Latest Stories
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
5 hours ago
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
5 hours ago
Here's a New Tour of Apple's HomeView Software
Here's a New Tour of Apple's HomeView Software
5 hours ago
Apple Reveals New iPad Mini's Battery Capacity
Apple Reveals New iPad Mini's Battery Capacity
6 hours ago
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
8 hours ago
'Pluribus' Season 2 Reportedly Starts Production Today
'Pluribus' Season 2 Reportedly Starts Production Today
14 hours ago
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
15 hours ago
HomeView Software 27.2: Wallpapers, Control Center, and More
HomeView Software 27.2: Wallpapers, Control Center, and More
21 hours ago
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
22 hours ago
iOS 27.3 Will Enable These Apple Intelligence Features in China
iOS 27.3 Will Enable These Apple Intelligence Features in China
23 hours ago
Apple Says iOS 27.3 Beta Coming Next Week
Apple Says iOS 27.3 Beta Coming Next Week
23 hours ago
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
1 day ago
14 New Things Your iPhone Can Do in iOS 27.2
14 New Things Your iPhone Can Do in iOS 27.2
1 day ago
iPhone Duo Review: One Week Later
iPhone Duo Review: One Week Later
1 day ago
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
1 day ago
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
1 day ago
MacBook Pro With Touch Display: 15 More Details Revealed
MacBook Pro With Touch Display: 15 More Details Revealed
1 day ago
Russia Places Apple on State Surveillance Registry
Russia Places Apple on State Surveillance Registry
1 day ago
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
1 day ago
Apple Has Released More Than 25 New Products in the Past Two Months
Apple Has Released More Than 25 New Products in the Past Two Months
1 day ago
Local Code Launches as Free, Private AI Assistant Tool for Mac
Local Code Launches as Free, Private AI Assistant Tool for Mac
1 day ago
Apple Acquires Ascend.io
Apple Acquires Ascend.io
1 day ago
HomePod Mini 2 Launches Today: All the New Features
HomePod Mini 2 Launches Today: All the New Features
1 day ago
AirTag 2 4-Pack Drops to New Low Price of $69.99
AirTag 2 4-Pack Drops to New Low Price of $69.99
1 day ago
Rian Johnson's iPhone Camera App Goes Viral
Rian Johnson's iPhone Camera App Goes Viral
1 day ago
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
1 day ago
Apple's Touchscreen MacBook Pro Could Ship 1.5M Units in 2027
Apple's Touchscreen MacBook Pro Could Ship 1.5M Units in 2027
1 day ago
New Apple TV 4K and iPad Mini: RAM Amounts Revealed
New Apple TV 4K and iPad Mini: RAM Amounts Revealed
2 days ago
Apple Executive Comments on New iPad Mini Lacking 120Hz Display
Apple Executive Comments on New iPad Mini Lacking 120Hz Display
2 days ago
Here's a Hands-On Look at HomePod Mini 2's New Two-Tone Colors
Here's a Hands-On Look at HomePod Mini 2's New Two-Tone Colors
2 days ago

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors