Apple's sales in China tumbled in the second quarter after currency headwinds hurt Hong Kong sales, the company said in Tuesday's earnings.
"The vast majority of the weakness sits in Hong Kong," Apple CEO Tim Cook told analysts in an earnings call. "The Hong Kong dollar being pegged to the U.S. dollar, and therefore it carries the burden of strength of U.S. dollar. And that has driven tourism, trade and international shopping down significantly compared to what it was in the year ago."
The company reported quarterly earnings and revenue that missed analysts' expectations, with revenue declining year-over-year in every region. But China saw the biggest share of declines: Greater China sales, once the tech giant's fastest growing market, fell to $12.49 billion in the second quarter, the company said, a 26 percent year-over-year decline.