Companies
Apple revenue falls in Greater China region
Apple Inc’s revenue from the Greater China region fell 33 percent year over year as the tech giant reported earnings for its fiscal third quarter on Tuesday.
The Cupertino, California company posted quarterly revenue of $42.4 billion and net income of $7.8 billion, or $1.42 per diluted share, compared with revenue of $49.6 billion and net income of $10.7 billion, or $1.85 per diluted share, in the year-ago period.
Still, Apple surpassed Wall Street expectations. The EPS of $1.42 was 12 cents better than estimates, and that likely helped shares surge in after-hours trading on the Nasdaq Stock Market, where they were up $6.78, or 7 percent, to $103.45, at 5:30 pm ET. The stock had closed down 67 cents in the regular session.
Revenue in Greater China was $8.85 billion, compared with $13.2 billion in the 2015 quarter. Revenue fell 29 percent from the second quarter of 2016, when it came in at $12.49 billion.
Sales of iPhones in the China region were down 7 percent, according to Barron’s.
Apple is facing heavy competition from Chinese smartphone makers, which include giant Huawei Technologies Co Ltd, Xiaomi Inc, OPPO Electronics Corp and newcomer Vivo.
Huawei shipped 25 percent more smartphones in the first half of 2016, to 61 million units, the company reported on Tuesday, and registered a 41 percent increase in its consumer business.
Shenzhen-based Huawei shipped 108 million phones in 2015, and ranks No. 3 in the world in units shipped behind Apple and Samsung Electronics Co Ltd.
The less-expensive phones offered by Chinese manufacturers also are more popular than Apple’s pricier ones with a key segment of the domestic market: teenagers.
International sales accounted for 63 percent of Apple’s quarter’s revenue in the quarter.
“We are pleased to report third-quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said CEO Tim Cook. “We had a very successful…
China
Government subsidies don’t boost Chinese firms’ productivity
China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.
Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.
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Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
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Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
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