Apple’s performance in China
China (FXI) has been a key growth region for Apple (AAPL). However, the continued macroeconomic pressures within the economy raised apprehensions regarding Apple’s prospective growth. To alleviate investor concerns regarding China, Apple’s CEO, Tim Cook, wrote a note about the company’s recent performance in China to CNBC’s Jim Cramer.
Based on a CNBC article from August 24, 2015, Cook noted, “I get updates on our performance in China every day, including this morning, and I can tell you that we have continued to experience strong growth for our business in China through July and August.”
Positive reception to Tim Cook’s statement
Cook’s report on Apple’s recent growth in China was taken positively by the market. Apple stock rose ~8.7% from its opening price during the day CNBC released the news. During the last week ending August 31, 2015, Apple stock has risen ~9.3%. This weekly gain helped the stock recuperate somewhat from its earlier losses during the month. Apple’s monthly decline in August was limited to ~6.6%.
Greater China includes the Hong Kong, Taiwan, and China markets. Greater China was the fastest-growing geographic segment, year-over-over (or YoY), of Apple (AAPL) in fiscal 3Q15, ending June 27, 2015. The segment’s revenue grew significantly by ~112.4% YoY to ~$13.2 billion when Apple’s consolidated revenue increased by ~32.5% YoY to ~$49.6 billion during the quarter.