Tim Cook heading to Beijing to tackle Apple’s China woes
Mr Cook has frequently travelled to China since taking the helm of Apple five years ago, but his latest visit comes during a critical period.
From weakening smartphone sales to the loss of an iPhone trademark dispute and the suspension of some of its online entertainment services, the US technology giant has been facing a flurry of problems in recent weeks in its second-largest market after the US.
That has raised concerns over Apple’s growth momentum, as the company reported last week its first quarterly revenue drop in 13 years.
Last week, billionaire activist investor Carl Icahn said in an interview with CNBC that he had sold his entire stake in Apple, citing China’s economic slowdown and worries about whether the government could make it very difficult for Apple to conduct business.
During his China visit, Mr Cook plans to meet senior government and Communist Party leaders — including officials in charge of propaganda, sources said.
Apple did not respond to Reuters’ requests for comments. In recent weeks, the company has wandered into the crosshairs of the government’s ongoing campaign to control web content and ensure localisation of data storage.
Apple’s online book and film services were shut in China last month, cutting off a potential source of income, following Beijing’s introduction of regulations in March imposing strict curbs on online publishing, particularly for foreign firms.
Under president Xi Jinping, China is also trying to shift away from its dependence on foreign technology, especially in critical sectors like banking and insurance.
Despite growing concerns over its China business —Apple reported its revenue from Greater China, which includes Hong Kong and Taiwan, dropped 26% last quarter — Mr Cook has been optimistic.
“I see China as may not have the wind at our backs that we once did but it’s a lot more stable than what I think is the common view of it,” he said during the company’s earnings call last week.
“We remain really optimistic on China.”
Exclusive: Apple's Tim Cook to visit China for government meetings - source: https://t.co/w96MB9zxhg pic.twitter.com/C3FzMRdVAo
— Reuters (@Reuters) May 6, 2016
