Sales fell in Greater China
Apple’s (AAPL) revenue from Greater China, which includes China, Hong Kong, and Taiwan (EWT), fell 12.0% YoY (year-over-year), from $18.4 billion in fiscal 1Q16 to $16.2 billion in fiscal 1Q17. Revenue from Mainland China rose YoY on a constant currency basis.
In fiscal 1Q17, the United States continued to be Apple’s largest market, generating revenue of $32.0 billion. That was a 9.0% rise from fiscal 1Q16 revenue. Revenue from Europe rose 3.0% to $10.5 billion, and revenue from the Asia-Pacific region rose 8.0% to $5.9 billion. Revenue from Japan saw a significant rise of 20.0% to $5.8 billion.
China remains an important market for Apple
Apple’s revenue in China has been negatively impacted in the last few quarters by increasing competition from domestic smartphone manufacturers such as Huawei and Oppo. Apple was satisfied with its performance in China in fiscal 1Q17. Its CEO (chief executive officer) Tim Cook stated, “Our year-over-year performance in Greater China improved significantly relative to the September quarter. Total Greater China segment revenue was down 12%, but revenue from Mainland China was even with the all-time record results from a year ago and grew in constant currency terms.”
China, which accounted for more than 20.0% of Apple’s revenue in fiscal 1Q17, is Apple’s third-largest market after the Americas and Europe. Apple has faced falling sales and revenue in China since the start of the year. Sales fell 24.0% YoY in fiscal 2Q16, 33.0% YoY in fiscal 3Q16, and 30.0% YoY in fiscal 4Q16. China was previously Apple’s second-largest market.