What Apple Has to Fear from China

No company wants to report that its sales have declined. But when you’re Apple, which has consistently seen its revenues grow for more than twelve years, it’s not just bad news but a serious kink in a joyful narrative of boundless possibility. Earlier this week the company—the most valuable in the U.S.—told shareholders that revenues had declined by thirteen per cent. Apple’s chief executive, Tim Cook, did his best to spin the numbers—temporary currency fluctuations were to blame; sales will rise again as the iPhone SE continues its rollout; the company will rebound thanks to “the incredible strength of the Apple ecosystem.” But Cook couldn’t assuage fears about the biggest reason for the revenue decline: a twenty-six-per-cent drop in sales in China, Taiwan, and Hong Kong, accounting for fifty-eight per cent of the over-all decline in Apple’s growth. The company’s stock price promptly plummeted.

See the rest of the story at newyorker.com

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