trending Market Intelligence /marketintelligence/en/news-insights/trending/Pn36DAITPQtRnf7p5nDILw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Apple CEO defends virtual private network app removal in China

COVID-19 Lockdown Boosted Growth Of Digital Platforms

Asia-Pacific markets improve broadband speeds despite COVID-19 impact

Simplifying The Assessment of Company Fundamental Data

China COVID-19 Trends In TV, Video

Apple CEO defends virtual private network app removal in China

Apple Inc. CEO Tim Cook has defended the removal of virtual private network, or VPN, apps from App Store in China amid concerns over the recent regulatory crackdown and Apple's declining growth in the country.

Cook said on the company's fiscal third-quarter earnings call that the iPhone maker only removed the VPN apps that did not meet China's online rules, which makes it mandatory for VPN operators to acquire a government license.

Hundreds of VPN apps are still available on the App Store, including those by developers outside China, Cook said.

"We would obviously rather not remove the apps, but we follow the law wherever we do business," he said.

VPNs are commonly used in China to circumvent the country's Great Firewall, a nickname for the internet filtering system used to block its citizens from accessing foreign content.

In recent months, China has stepped up its crackdown on online platforms and ordered state-run telcos to block access to VPNs. Beijing Sinnet Technology Co. Ltd., operator of Inc.'s cloud service in China, reportedly ordered its local clients to stop using software that would allow Chinese consumers to bypass restrictions.

"[W]e strongly believe that participating in markets and bringing benefits to customers is in the best interest of the folks there and in other countries as well. And so we believe in engaging with governments, even when we disagree," Cook said.

However, some believe that declining growth of its smartphone business in the country is pulling Apple closer to China as its reliance on a heavily regulated services business grows.

Apple's revenue in Greater China declined 10% year over year in the quarter ended June 30 to $8.00 billion, from $8.85 billion, despite strong growth from services, iPad and Mac, and a record number of device upgrades. Apple's revenue grew 3% in Japan and 15% in the rest of Asia-Pacific, which was highest among all regions.

Apple's smartphone shipments in mainland China declined 1% year over year in the quarter ended June 30 as opposed to more than 20% growth in shipments see by local rivals such as Xiaomi Inc., Oppo, Huawei Technologies Co., Ltd. and Vivo, market analysis firm Counterpoint Research said.

Cook, however, said he was "encouraged" by the results in China as it was an improvement from a 14% decline year-over-year in the previous quarter.

"If you look underneath the numbers, mainland China was actually flat year over year during [the fiscal third quarter]. And in constant-currency terms, we were actually up 6% in mainland China. And so we're very encouraged by that," he said.

Apple's services business continued to grow across all markets, including China, with revenue hitting an all-time quarterly record of $7.3 billion, representing 22% year-over-year growth, Cook said.

He was also upbeat about prospects in emerging markets, especially India.

"I see a lot of similarities where China was several years ago. And so I'm very, very bullish and very, very optimistic about India," he added.

However, Apple's overall earnings results beat analyst estimates, and its shares traded up over 6% in after-hours speculation following the earnings release.

The overall growth reportedly rippled out to its component makers globally, pushing Asian technology stocks up. Among Apple suppliers, LG Corp.'s LG Innnotek jumped 9% and SK Hynix rose almost 3%.