(Bloomberg) — Apple Inc. grew income in China a surprisingly sturdy 8% whereas setting a document for Indian iPhone gross sales, brilliant spots in an in any other case disappointing quarterly check-in from the world’s most precious firm.

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Those twin milestones stood out after Apple posted its third straight quarter of declining gross sales and predicted an identical efficiency within the present interval, harm by an industry-wide hunch that has sapped demand for telephones, computer systems and tablets. The iPad and Macbooks maker reported a better-than-expected 7.9% rise in income from China — which incorporates Hong Kong and Taiwan — to $15.7 billion. And iPhone gross sales in India grew double-digits to a brand new excessive, although executives didn’t disclose exact numbers.

China specifically has been a significant drag on the worldwide smartphone enviornment since final 12 months, and has didn’t bounce again as anticipated due to post-Covid financial turbulence. Chief Executive Officer Tim Cook urged customers on this planet’s greatest cell market had been abandoning Android options from its greatest rivals, which embody Xiaomi Corp. and Huawei Technologies Co.

“Switchers were a very key part of our iPhone results for the quarter, we did set a record,” Cook advised analysts on a post-results briefing.

Read extra: Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps

China’s smartphone market is struggling alongside a sputtering economic system. Shipments have shrunk each quarter because the begin of 2022, as customers tighten their budgets to take care of a post-Covid downturn. The market might bounce again within the fourth quarter when Apple and its rivals sometimes launch their newest units, however that progress might be weaker than anticipated, IDC predicts.

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Heavy discounting in the course of the “6.18” annual June purchasing competition seemingly propelled system gross sales basically, however Apple’s model helped it outpace rivals, IDC analyst Will Wong mentioned.

“Apple showed that it’s still the best alternative in China’s high-end segment, despite all the tensions between the US and China,” he mentioned. “If we look at the recent 6.18 shopping festival, Apple’s price-discount promotions successfully stimulated consumer demand, but of course its premium brand name allowed consumers to feel that it’s value for money.”

While unsurprising, the Indian efficiency additionally vindicates the corporate’s renewed concentrate on a market the place the iPhone has lengthy been past the attain of many customers. Apple now views the fast-expanding nation as each an enormous retail alternative and an essential manufacturing base for its devices in the long run.

Apple’s income there grew by practically 50% within the 12 months by way of March to nearly $6 billion, Bloomberg News has reported. The firm, which simply opened its first shops within the nation, is planning to increase its community in India as a part of an Asia-wide thrust.

Five Takeaways From Apple Third-Quarter Earnings Report: TOPLive

–With help from Mark Gurman and Nick Turner.

(Updates with an analyst’s remark from the sixth paragraph)

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