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Apple’s revenue increased, on the other hand, China sales declined by 11%

The iPhone manufacturer’s first-quarter 2025 sales increased by 4% to $124.3 billion over the same period last year. That even exceeded Wall Street’s forecasts. Apple’s net income for the same period last year was $36.33 billion, a 7.1% increase from $33.92 billion.

The rise coincided with the company’s iPhone sales falling 11.1% in China. That caused revenue to decline to $18.51 billion. This is the biggest decline in this crucial area. Since a decline of around 13% in the first quarter of 2024.

Due to increased competition from domestic makers like Oppo and Vivo, the firm has found it more and more difficult to compete. Since the first Trump administration enforced trade restrictions, Huawei’s sales have drastically decreased. It has since recovered in its home nation.

In an interview with CNBC, CEO Tim Cook attributed some of the faults to Apple Intelligence. That isn’t yet accessible in China and several other important areas. The main selling feature of Apple’s iPhone 16, which made its debut late last year. This is by far its tiny model generative AI platform.

Cook said

“During the December quarter, we saw that in markets where we had rolled out Apple intelligence, the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence,”.

Currently, the AI platform is accessible in English in the following countries: Australia, Canada, Ireland, New Zealand, South Africa, the United Kingdom, and the United States. Although Apple has not yet disclosed if the feature will eventually be available in mainland China, Chinese is one of the languages that will be added later this year.

The obstacles preventing Apple Intelligence from a China deployment include security limitations and regulatory approval. According to reports, the corporation collaborated with Baidu, a local internet behemoth, to integrate AI capabilities into iPhones in the nation. However, it appears that the deal has encountered its own obstacles. Cook also brought up the issue of channel inventories, which has limited the nation’s access to new electronics.

Despite the firm expecting an Apple Intelligence-driven boost, iPhone sales fell marginally year over year. When iOS 18 was released, the platform’s features were introduced gradually. The rollout of some services, such as news summaries, was also difficult. Apple put the function on hold to fix a problem with inaccurate information being displayed.

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