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2017 Q2: Apple Posted a Modest Quarter but China Continued the Decline

by Yiwen Wu | Aug 03, 2017

Apple posted a modest quarter as iPhone shipments grew by +1% YoY in Q2 2017. It remained the second largest smartphone vendor after Samsung this quarter.  

While the healthy demand for iPhone 7 series drove up iPhone wholesale ASP and revenue annually, the vendor’s operating profit margin was dented mainly due to higher component prices and operating costs.

Attention is now switched to its tenth-anniversary flagship model: whether it will be different or exciting enough to ignite a rebound in iPhone volumes for the important Q4 2017 western holiday season.

China remains a big problem and mainly led to the decline in Asia Pacific region. Apple’s iPhone has arguably though gone out of fashion in China and this is placing a cap on its worldwide performance. We have noticed the vendor’s recent tension with Tencent about Wechat and with Alibaba about Alipay. What actions should Apple take to regrow China business this year?

Our latest report Q2 ’17: Apple: Stable Smartphones Quarter but Still Losing Ground in China was published and WSS clients please click here to access the full report.

Photo for Blog Apple Q2 2017
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