Tim Cook takes stock in China amid fear of Apple ‘slipping’, makes a surprise visit to Tencent gaming event

Tim Cook, the CEO of Apple Inc., made a surprising appearance at a Tencent gaming tournament in China, signalling support for one of the top revenue generators on the Apple App Store. This move comes amidst ongoing uncertainty regarding the status of Apple’s key overseas market. Cook’s visit included a stop at Apple’s Taikoo Li store in Chengdu, a city in southwestern China. During his visit, he interacted with customers and staff, as seen in a brief video shared on the social media platform Weibo. Cook expressed gratitude to gamers participating in the “Honor of Kings” tournament, a long-standing cash cow for Tencent Holdings Ltd. In a post, Cook described the event’s energy as “off the charts” and shared a video featuring fans engrossed in the game, developed by Tencent’s TiMi studio. Cook’s personal appearance underscores the significance of China to Apple, serving as the company’s largest international market and a cornerstone of its manufacturing network. This visit occurs at a time when the United States is intensifying sanctions to counter China’s semiconductor ambitions. Notably, Cook’s visit to Chengdu followed the release of two research reports highlighting a lacklustre start for the iPhone 15 in China. The iPhone 15, a flagship device, plays a pivotal role in Apple’s global revenue. Counterpoint Research, in previously unreported data, estimated a 4.5 per cent decline in sales for the iPhone 15 compared to its predecessor, the iPhone 14, during the first 17 days after launch. While Cook’s exact schedule remains undisclosed, global executives and heads of state are set to gather in Beijing for the annual Belt and Road Forum, a prominent initiative under President Xi Jinping, vital to China’s economic and diplomatic efforts. This year, Beijing has pledged to support private and foreign businesses, although concerns persist about the opacity of regulations. The iPhone 15’s launch coincided with the release of Huawei Technologies Co.’s Mate 60 Pro, celebrated for its advanced, domestically-produced processor in defiance of US sanctions. Additionally, the Chinese government recently expanded a ban on iPhone use to official agencies and state-run enterprises, further complicating Apple’s operations in the country. Despite these challenges, Cook has consistently emphasized the strength of Apple’s relationship with China. During his visit to the country earlier this year, he referred to the partnership as “symbiotic.” In March, Cook also visited the Shanghai headquarters of Mihoyo, the creator of “Genshin Impact,” another key contributor to Apple’s gaming revenue through the App Store.