By Mark Gurman and Ian King
Apple Inc. on Thursday reported its lowest revenue in China since 2014, causing concern the company is losing momentum to homegrown rivals in one of its most critical markets.
Sales in Greater China fell 29% in the quarter ending Sept. 26, with the company attributing the slump to the delayed launch of the iPhone 12. The stock fell 4% in extended trading.
Apple typically puts new iPhone models on sale in the third quarter, but this year the devices were not available until late October. Two of the handsets, the iPhone 12 mini and iPhone 12 Pro Max, won’t arrive in stores until the middle of November.
The Covid-19 outbreak disrupted Apple’s supply chain, leading to the later launches. But even before the pandemic, the company was slower than most rivals to develop smartphones with faster 5G capabilities.
In 2019, competitors including Samsung Electronics Co., Huawei Technologies Co. and Xiaomi Corp. launched a number of 5G devices, which have been followed by dozens of additional and more affordable 5G handsets this year before the iPhone 12.
On Wednesday, Samsung reported smartphones sales jumped almost 50% during the September quarter. Apple’s iPhone revenue fell 21% in the period, from a year earlier.