Apple's fiscal first quarter results showed a bit of stabilization in China and "record revenues" in India, according to CEO Tim Cook, but the U.S. technology giant still faces challenges in these emerging but increasingly "critical" markets.
Greater China revenues were down 12 percent year-on-year to $16.2 billion, marking another double-digit decline in the region for Apple. The bright spot however was that Greater China revenues – which includes Mainland China, Taiwan and Hong Kong – were up 85 percent on the quarter, thanks to the iPhone 7 series. And Cook said on an earnings call that on a "constant currency" basis, sales in mainland China were up six percent.
It points to some stabilization, according to analysts.
"Improvement with Greater China revenue -8 percent in constant currency and Mainland China +6 percent suggests the issues are more cyclical than secular. The Greater China decline should be similar in F2Q (fiscal second quarter), so improvement and possibly some growth come in the F2H (fiscal second half)," UBS said in a note on Wednesday.
Cook said that he does not expect next quarter's performance to be "dramatically different" to the first fiscal quarter, offering little in the way of specific numbers.
And in India – a country Cook has touted the potential of on many occasions – Apple recorded "record revenue". The Cupertino, CA-based firm does not break out specific figures for India. And Apple does not look like pulling back from the country.
"We are in discussions on a number of things, including retail stores, and fully intend to invest significantly in the country and believe it's a great place to be," Cook said on the earnings call.