Apple grapples with turmoil in China days before iPhone 15 launch
Apple Inc. is looking to stave off a crisis in China just days before the launch of its next iPhone, an already high-stakes event that will test whether new features can shake the smartphone industry out of the doldrums.
The product unveiling, set to stream globally from the company’s headquarters on Tuesday, risks being overshadowed by multiple controversies in China — Apple’s largest international market.
The tech titan is contending with a growing ban on iPhone use among government workers, and a contentious new phone from China’s Huawei Technologies Co. is providing homegrown competition.
But the biggest potential threat to Apple may be something more nebulous: a resurgence in Chinese nationalism that spurs everyday consumers to shun the iPhone and other foreign-branded devices.
It’s something the company has confronted before.
Almost five years ago, Apple fell short of holiday forecasts for its just-released iPhone XS and XR because of weak sales in China. Publicly, Apple blamed the US-China trade war and the local economy.
But in an internal email to the company’s board, Chief Executive Officer Tim Cook also cited Chinese nationalism and growing competition from local rivals.
Apple’s Last Slowdown in China Started in 2019 | Company is looking to avoid another slump in the key international market
At the time, the Trump administration had recently blacklisted Huawei, and simmering US-China tensions made life harder for companies deeply reliant on the Asian nation. Apple’s Chinese revenue fell in fiscal 2019 and 2020, before rebounding in 2021.
The company generates about a fifth of its sales from China, which is also the heart of Apple’s supply chain.
The question now is whether Apple will face a repeat of 2019. The
