Apple exec: China market a strength, not a drag

Apple's Eddy Cue: Biz in china strong

Contrary to what some analysts say, Apple's business in China is booming.

That was the message from Eddy Cue, Apple's senior vice president of Internet software and services, in an interview Thursday with CNBC.

The company's App Store did a record $1.7 billion in transactions in July. Cue attributed that success in part to strong momentum in China, where the App Store set a new record for customers.

"We are seeing more and more customers in China going to the App Store," Cue said.

Customers at an Apple store in Hangzhou, China.
Zhang Peng | LightRocket | Getty Images

He also noted that the average spend per iPhone user in China continues to increase. That's critical for investors, who want to know that consumers in that country are spending more money on Apple's products and services.

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Cue also noted that Apple has some 1 million developers in China, a sign that the company continues to build and strengthen its ecosystem there.

Apple's shares are down hard since the tech giant reported earnings in late July, and one big reason is concern that its growth in China could slow.

In its last reported quarter, the company said revenue in Greater China—meaning China, Hong Kong and Taiwan—dropped 21 percent sequentially, which concerned investors.

Read MoreExperts toss cold water on Apple's China 'concerns'

However, Piper Jaffray's Gene Munster notes that the decline was less severe than in prior years. He points out that Apple, over the past four years, has averaged a sequential decline of 32 percent.

Munster instead concentrates on year-over-year data. Sales in Greater China, judged by that metric, surged 112 percent in the third quarter.